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T R O U B L E D   C O M P A N Y   R E P O R T E R
      
  Wednesday, October 28, 1998, Vol. 2, No. 211

                  Headlines

AHERF: Drexel's Board Approves Revised Agreement With Tenet
AR ACCESSORIES: Unit Files Plan, Disclosure Statement
CAMELOT MUSIC: To Be Acquired By Trans World Entertainment
CITYSCAPE FINANCIAL: Order Directs Appointment of Examiner
CRIIMI MAE: Court Authorizes Employ of Professionals

DISCOVERY ZONE: CEO Leaving
DOEHLER-JARVIS: Order Confirms Consolidated Plan
GENERAL WIRELESS: Reorganization Plan Effective
GREATE BAY: Seeks Third Extension of Exclusivity
HAYES CORP: Recounting The Errors

HOSPITAL STAFFING: Order Approves Accountants For Committee
MERCURY FINANCE: Prepares For Confirmation of Plan
NORDICTRACK: Will Close Most Retail Locations
ONE-STOP WIRELESS: Conversion To Chapter 7?
OXFORD HEALTH: Faces Doctors' Suits Seeking $1.1 Billion

PERK DEVELOPMENT: Seeks Rejection of Leases
SA TELECOMMUNICATIONS: Files Current Report With SEC
SCOOP INC: Notice of Claims Deadline
SCOTT CABLE COMMUNICATIONS: Hearing For Sale Set
SUN TV: Meeting of Creditors Set

UNITED HEALTHCARE: Files Prospectus With SEC
UNISON HEALTHCARE: Gets Nod For $2.7 Million Severance Pact
UNISON HEALTHCARE: Seeks Time To Assume Or Reject Leases

                  *********

AHERF: Drexel's Board Approves Revised Agreement With Tenet
-----------------------------------------------------------
Oct. 26, 1998--Drexel University's Board of Trustees Monday
unanimously approved a revised management services
arrangement with Tenet Healthcare Corp. (NYSE:THC) under
which Drexel will manage a new university, formerly known
as Allegheny University of the Health Sciences.

The board's decision allows Tenet to proceed with its plan
to restructure the health sciences university and acquire
eight Philadelphia-area hospitals formerly owned by
Allegheny Health, Education and Research Foundation.

Drexel's board formally accepted the revised proposal,
which includes a $ 50 million gift to Drexel
from Allegheny's creditors at the request of Pennsylvania
Gov. Tom Ridge and Philadelphia Mayor Ed Rendell. Under the
terms of the agreement, Drexel will be reimbursed for the
costs of administering the reorganized university, be paid
a management fee, and will have the option to merge the
university into its operations.

Tenet has directed that $ 60 million of its $ 345 million
bid for the entire Philadelphia-area healthcare system be
paid to the reorganized university. Tenet has also pledged
to contribute $ 30 million in the first year for working
capital plus another $ 33 million for training and program
support in each of at least the next two years. The Drexel
board rejected the original management proposal
on Oct. 13.

"Tenet has maintained from the outset that the health
sciences university and its faculty are an
essential component of the comprehensive health system we
intend to build for the residents of Philadelphia," said W.
Randolph Smith, executive vice president of operations for
Tenet's Eastern Division. "With Drexel managing the
university, we can be assured that it is in the hands of
administrators who understand the academic and research
missions. Working cooperatively with our Philadelphia
hospitals, Drexel will ensure that the physicians, faculty
and students at the university have an excellent
educational and clinical learning opportunity."

On Sept. 29, Tenet submitted a winning bid of $ 345 million
to U.S. Bankruptcy Court to acquire the eight hospitals and
restructure the health sciences university. The bid
provides that the assets of the university be reorganized
in a new, locally administered not-for-profit organization
administered by Drexel and overseen by a governing board
appointed by Drexel and Tenet and which will include
faculty representatives. The university is composed of
schools of medicine, nursing, public health and health
professions.

Founded in 1891 and based in Philadelphia, Drexel
University is widely recognized for the quality
and scope of its technology-focused teaching and research,
its top-ranked programs in engineering, information science
and the life sciences and its 80-year-old cooperative
education program.


AR ACCESSORIES: Unit Files Plan, Disclosure Statement
-----------------------------------------------------
The liquidating reorganization plan and disclosure
statement filed Oct. 9 by AR Accessories Group Inc.
subsidiary Wallet Works Inc., reflects the $200,000
resolution of the once contentious battle with the union.  
Wallet Works sold its assets to various subsidiaries of
Wilsons The Leather Experts Inc. (WLSN) for $5.4 million
and $906,368 of that sum was released to the estate,
pushing the total amount of estate assets to about $7.6
million, according to the disclosure statement.  The
lenders turned money over to the estate, despite asserted
secured claims against substantially all of the assets of
AR and its subsidiaries, as the result of a settlement with
AR Accessories and its creditors. (Federal Filings Inc. 27-
Oct-98)


CAMELOT MUSIC: To Be Acquired By Trans World Entertainment
----------------------------------------------------------
The Wall Street Journal reports October 27, 1998 that Trans
World Entertainment Corp. agreed to acquire Camelot Music
Holdings Inc. in a stock transaction valued at about $432.1
million.  Following the news, Camelot shares closed up 47%.

Trans world said that its planned purchase of Camelot is
its largest acquisition yet.

A Trans World spokesman was quoted as saying that Trans
World plans to post 1998 revenue of more than $700 million
and expects Camelot to report revenue of about $600
million.

Trans World operates 520 stores under names including
Record Town, Saturday Matinee and Coconuts.  Camelot
operates 492 stores, mostly in malls. Trans World stock
fell 50 cents to $20.125 and Camelot rose $11.50 to $36 in
trading on the over-the-counter bulletin board.


CITYSCAPE FINANCIAL: Order Directs Appointment of Examiner
----------------------------------------------------------
The court entered an order in the case of Cityscape
Financial Corp., and Cityscape Corp., directing the U.S.
Trustee for the Southern District of New York to appoint an
examiner to conduct a preliminary investigation and
examine:
Whether the facts relating to the debtors' restatements of
their financial statements may give rise to potential
claims against the debtor or their professionals; the
results of any investigations with regard to the
restatements of the debtors' financial statements and
write-downs of assets performed by the debtor; the extent
to which any person who maybe liable on a potential claim
and who is being released under the Plan is contributing to
the Plan; the facts and circumstances with respect to
alleged short sale of common stock; the extent to which
insurance pollicies may cover a potential claim are being
used to fund payments under the plan and; the extent to
which insurance policy proceeds may satisfy potential
claims.

The court approved the appointment of Harrison J. Goldin,
Esq. as examiner on October 22, 1998.


CRIIMI MAE: Court Authorizes Employ of Professionals
----------------------------------------------------
The court entered an order in the case of Criimi Mae Inc.,
et al. authorizing and approving the employment of Arthur
Andersen LLP as accounting, tax and business advisors.

The court entered an order authorizing and approving the
retention and employment by the debtors of the law firm of
Akin, Gump, Strauss, Hauer & Feld, LLP.


DISCOVERY ZONE: CEO Leaving
---------------------------
Discovery Zone, Inc. ("DZ") announced today that Scott W.
Bernstein, its President and CEO, would be leaving the
Company at the end of November. Mr. Bernstein, a former
Time Warner and Six Flags executive, became CEO of
Discovery Zone in December 1996 while the Company was
operating under Chapter 11 bankruptcy protection and led
the Company through confirmation of
its Plan of Reorganization and the first year of operation
under its new business plan.

Chet Obieleski, the Company's Chief Operating Officer, will
assume the additional titles and responsibilities of
President and CEO effective November 27, 1998. Mr.
Obieleski, who began his present position in August 1998,
has over 30 years of senior management experience in
retailing and consumer goods. He most recently served as
interim COO/CFO of AIG Designs, a furniture importer, and
previously was Executive Vice President of Britches and
Senior Vice President, Finance and Operations of Sterns,
two large multi-unit retailers.

Discovery Zone is the leading owner and operator of
children's entertainment centers in North America with 200
locations across the United States, Canada and Puerto Rico.
DZ is a frequently changing environment where kids and
their families can experience a variety of participatory
activities.


DOEHLER-JARVIS: Order Confirms Consolidated Plan
------------------------------------------------
The Bankruptcy Court for the District of Delaware entered
an order on October 15, 1998 confirming the first amended
and modified consolidated plan of Doehler-Jarvis Inc. and
its affiliated debtors.


GENERAL WIRELESS: Reorganization Plan Effective
-----------------------------------------------
The reorganization plan for General Wireless and its
subsidiaries went effective after two separate higher
courts rejected pleas from the Federal Communications
Commission for a stay pending resolution of the agency's
appeal.  Now that the U.S. Court of Appeals for the Fifth
Circuit and the U.S. District Court in Dallas denied the
agency's motions, the company said it will concentrate on
fighting the FCC's appeal.  Not surprisingly, the FCC
played down the denial of its motions, saying it too is
focusing all efforts on the appeal.  The court confirmed
General Wireless' plan on Sept. 9 amid numerous objections
from the FCC.(Federal Filings Inc. 27-Oct-98)


GREATE BAY: Seeks Third Extension of Exclusivity
------------------------------------------------
The debtors, Greate Bay Hotel and Casino, Inc., GB
Holdings, Inc., and GB Property Funding Corp., seek a court
order for a third extension of debtors' exclusive periods
of time in which to file a plan of reorganization and
solicit acceptances thereof.

The debtors state that they have made every effort to move
this case to a conclusion, and despite having made material
strides, the debtors are not yet in a position to file a
plan of reorganization.  The debtors' exclusive periods to
file a plan or plans of reorganization expire on November
9, 1998. The debtors' exclusive solicitation periods
terminate on January 8, 1999.  By this motion, the debtors
seek a 90-day extension of these deadlines, to February 8,
1999 and April 7, 1999 respectively.

The debtors state that there are key negotiations with
third parties that must be concluded before a plan can be
filed. A Settlement Agreement resolved many issues
including: an adversary proceeding seeking temporary
restraints and a preliminary injunction against the
debtors' ultimate corporate parent to preserve an option to
buy an adjoining parcels of land, a determination as tow
whether debtors' tax attributes were property of the
debtors' estates and therefore could not be utilized by the
debtors' affiliates in a consolidated return, a motion to
disqualify debtors' counsel, the debtor's motion to reject
a management service agreement, and an effort to simplify
its balance sheet.

The debtors are still evaluating hundreds of proofs of
claim and the debtors continue to be involved in
significant discussions with major bondholder creditors on
issues concerning strategies for emergence from Chapter 11,
including the efforts by a merchant bank affiliate of an
institutional investor concerning its interest in filing a
plan of reorganization.  

The debtors have continued discussions with another
substantial financial source, and the debtors established a
"data room" containing material financial and company
information to which the debtors anticipate any prospective
interested investor would require access in order to
propose a plan of reorganization in this case.  The debtors
submit that their right of exclusivity is still critical to
the success of this case.


HAYES CORP: Recounting The Errors
---------------------------------
When Hayes Corp. filed for bankruptcy protection Oct. 9 ---
the company's second Chapter 11 in three years --- there
was no shock, just a stunning contrast, once again with the
past.  After all, a decade ago, Hayes, located on Peachtree
Corners East, was a thriving, growing company, the leading
modem maker and one of the largest and most promising
employers in high-tech in Atlanta. Its fall from grace has
been long, painful and public.

The demise of Hayes is in many respects a classic business
story, even a classic human drama. In the good times, Hayes
saw no need to change. When times turned tough, change
became excruciatingly hard.  Hayes is not unique. Novell
Inc. once set itself a similar trap on a much larger scale.
Once the world's largest software company, the Utah-based
company owned more than 80 percent of the market for
network software. The market grew and sales increased past
$2 billion, even as the company blundered into new  
businesses far from its core competence. Then the losses
began.

Hayes Corp. started life as D.C. Hayes Associates in 1978.
By the middle 1980s, it was dominant in an industry it
helped create. Founder Dennis Hayes, the chief executive
and chairman, who won various entrepreneur awards and gave  
generously to area charities, was an Atlanta business hero.
He bought out or fired partners in the early going, and by
1985 his company had become the biggest modem maker,
accounting for nearly half the sales in the modem market,  
according to Dataquest.

Yet five years later, Hayes' market share was under 10
percent. And when the company filed for bankruptcy
protection this month, Hayes held only 3.3 percent of the
market.

In the meantime, Dennis Hayes has been forced to loosen his
grip on the company bearing his name. To emerge from
bankruptcy in 1996, he surrendered command of daily
operations to Joe Formichelli, lured from IBM to be Hayes  
chief executive. Last week Hayes resigned as chairman and
was replaced by Chief Executive Ron Howard, although he
retained his seat on the board.  For those who see Dennis
Hayes as the culprit in his company's demise, the  
litany of errors is long.

He fought against an initial public offering of stock when
the company was taking off. He spent lavishly ---
especially during the good times --- on corporate parties,
as well as his own. Mina Hayes, hired away from U S West,  
later became Dennis' second wife, a situation that
irritated other managers. Hayes passed up a merger with
Boca Research, then rebuffed offers from Diamond  
Multimedia and U.S. Robotics. He is faulted for fostering a
climate of complacency, preventing cost-cutting, being slow
to bring new technologies to market, not following through
on others, second-guessing, and being --- in short --- a
micromanager.

Former Hayes engineers talk still about the first Optima
modem to have a voice-data switch. It was a high-profile,
high-stakes product. After months of design work, the
Optima was brought to Hayes. He was apparently pleased
except for one thing: He wanted the switch moved to the
other side of the modem. The engineers were appalled. It
seemed a trivial change, but it would cost many  
thousands of dollars and set back delivery by weeks or
months. Only after strenuous debate, was it permitted to go
to market as was.

Hayes' defenders say he also did quite a few things right.
He bought Practical Peripherals, a rival modem maker
serving a discount market. He forged the company's
alliances in Asia. He invested in broadband technologies --
-  digital subscriber lines (D'S) and cable modems. He ran
the company that defined standards for connecting
computers. As for taking decisions personally, why not? It
was his name on the door.

Hayes admits to some mistakes --- his dogged determination
to resist an IPO, and later, to reject Diamond's $140
million bid. To many observers, those actions appear to be
motivated by the need to remain master of his company.  
Virtually no one sees him as a man driven by greed, not
with stock worth less than $2 million when the company
recently staggered into bankruptcy protection.

Diamond's offer, in retrospect, might have given the
company more stability, Hayes said. "If I did it, I'd have
more money now but at the time, it looked like the right
thing to do."

By the mid-1990s, Hayes revenue crested at $250 million.
Emerging from its first bout with bankruptcy, Hayes
projected revenue would quickly reach $300 million. After
several strong quarters, sales sagged, undermined by
confusion over the technology standard for the cutting-edge
56 kilobit-per-second modems. But an agreement about a new
standard promised to jump-start sales.

Instead of growth and profits, in the first half of 1998
Hayes reported sales of $77.2 million --- a 38 percent
plunge in yearly revenue. Even worse, the company lost
$17.6 million during the same period. Even the fastest,
newest analog modems were suddenly treated as a commodity
by a slew of manufacturers desperately cutting prices.

"In the past quarter, they were selling modems for less
than what it cost to make them," said analyst Stephen
Coffer of Donaldson, Lufkin & Jenrette. "They
had to cut prices like crazy."

Complicating the collapse was a controversial financial
deal that helped decimate the company's stock value.

In order to obtain a $45 million line of credit at merger,
Hayes gave lenders preferred shares that they would
exchange for voting, common stock. The lower the value of
common stock, the more control of the company they would  
amass, and if large shareholders shorted the stock they
would drive down its price --- making it possible to buy
still more at a bargain.

The result was a stock price that slid from $12.56 1/4 at
the start of the year to 6 1/4 cents per share --- a loss
of 99.5 percent. Hayes sued preferred shareholders, then
dismissed the suits and put two shareholder representatives  
on the board of directors. But the company's Wall Street
credibility was in tatters. There seemed no hope of raising
more capital through investors.

Some employees blame CEO Ron Howard, but Howard points out
that many people saw the agreements and no one warned of
trouble. Not until a few months later would industry
writers identify that type of deal as creating "toxic  
preferred."

Howard has made a number of enemies in his brief stint as
CEO. Since his arrival in late 1997, a host of executives
and engineers have left the company, some seething at what
they felt was Howard's autocratic style and his lack of
experience at running a high-volume manufacturing company.  
Meanwhile, effective power has been transferred to
Gaithersburg, Md., the base for Howard and key executives
he added, including Chief Operating Officer Steve
Man and Chief Financial Officer Chuck Marinate.

Howard acknowledges that he underestimated how quickly
modem sales were falling.  He admits that the remote access
products from his former company were not delivered on
schedule. But he dismisses the notion that the company is  
worthless.  "There is significant value, but it has to be
rescued as part of the restructuring," Howard said.

How much is Hayes Corp. worth? Once a company of 1,200
employees, it has shrunk to less than half that size, while
sales continue to erode.  Expertise in manufacturing no
longer seems to count for much, since low-cost
manufacturing can be done by contractors overseas. Skeptics
also say there's little worth in the modems either, since
the technology that makes a difference is in the chips made
by companies like Rockwell and Lucent.

The company now faces $92 million in debt. Hayes is not
a start-up. And if broadband is the hope, the company's
fate is once again in the hands of an unreliable market.
ADSL sales depend on how fast the phone companies roll out
the service and how well it is marketed. The growth of
cable modems, still available to a comparative handful of
homes, depends on costly upgrades of company networks.
Analysts say broadband will not be a substantial  
portion of the market for several years, while analog
modems sell at cut-rate prices, about $100 for a 56k modem.
(Copyright 1998 The Atlanta Journal / The Atlanta
Constitution- 10/25/98)


HOSPITAL STAFFING: Order Approves Accountants For Committee
-----------------------------------------------------------
The court entered an order authorizing the Official
Committee of Unsecured Creditors to retain Soneet R. Kapil
and the accounting firm of Kapil & Company as accountants
to the Committee.


MERCURY FINANCE: Prepares For Confirmation of Plan
--------------------------------------------------
Mercury Finance Company filed a Form T3 with the SEC, for
applications for qualification of indentures under the
Trust Indenture Act.

On October 15, 1998, the Bankruptcy Court approved the
Company's First Amended Disclosure Statement dated October
15, 1998 as containing "adequate information" for the
purpose of soliciting votes of holders of claims or equity
interests in the Company for acceptance or rejection
of the Plan of Reorganization and authorized the Company
to solicit acceptances of its Plan of Reorganization.  A
hearing to confirm the Plan of Reorganization is
anticipated to begin on December 21, 1998.

On the Effective Date of the Plan of Reorganization, all of
the Company's current common stock will be canceled.  
Pursuant to the Plan of Reorganization, as of the Effective
Date, (a) 10,000,000 shares of New Common Stock of the
Company will be issued to holders of Senior Debt Claims (as
defined in the Plan of Reorganization) pro rata, based upon
each creditor's percentage of the Senior Debt Claims, and
(b) the stockholders of the Company and holders of
Securities Fraud Claims (as defined in the Plan of
Reorganization) will be entitled to receive Warrants to
purchase up to 15% of the New Common Stock of the Company.  
Accordingly, as of the Effective Date, based upon the
holders of the Senior Debt Claims on September 30, 1998.

A full-text copy of the filing is available via the
Internet at:

http://www.sec.gov/Archives/edgar/data/0000914760-98-
000182.txt


NORDICTRACK: Will Close Most Retail Locations
---------------------------------------------
A week after cutting up to 300 jobs, Chaska-based
NordicTrack said that it will close most of its retail
locations and is considering its options, including
bankruptcy.

The stores began a "big clearance sale" with all machines
including new 1999 models discounted 40 percent.  CML
Group, Inc., parent company of NordicTrack said that it is
actively reviewing financial alternatives including
additional financing, strategic partnerships and filing for
bankruptcy protection.  CML has lost more than 90 percent
of its market value since May, closing at a 52 week low of
31 cents, down 6 cents, on Thursday (Star Tribune
Minneapolis, Mn. 26-Oct-98)


ONE-STOP WIRELESS: Conversion To Chapter 7?
-------------------------------------------
Creditor CMT Partners joins in the motion of the U.S.
Trustee to convert the cases of One-Stop Wireless of
America, Inc., Pre-paid Cellular, Inc.,(Nevada) and Pre-
Paid Cellular, Inc., (Canada) from a Chapter 11 to Chapter
7.

The debtor opposes the motion of the US Trustee to convert
the cases to a Chapter 7.  The debtor states that
conversion of the case is not in the best interest of
creditors and the debtors' bankruptcy estates.  Although
the debtors have no ongoing business operations, there is
not continuing loss and diminution to these estates.  

The debtors allege that contrary to the assertions in the
Conversion Motion, the debtors have pursued C:/Net
Solutions, Inc.  The debtors also state that a payment of
$25,000 for a D&O policy to remain in effect was
reasonable, and absent such coverage, potential claims
would be rendered valueless.  The debtor also states that
hard assets were moved to a warehouse in Tennessee for the
benefit of the bankruptcy estates, and that allegations
regarding improper influence and control over the debtor's
bank accounts by C:/Net are being investigated.  The
debtors' active business operations were terminated before
the Petition Date.  The only activity being conducted by
the debtors at this point is the securing and marshaling of
assets, pursuit of potential claims against third parties,
fielding phone calls, providing litigation assistance and
negotiating a potential plan of reorganization.

The debtors maintain that there is a reasonable likelihood
of a successful reorganization in this case and that
conversion of these cases is not in the best interest of
the estates.  


OXFORD HEALTH: Faces Doctors' Suits Seeking $1.1 Billion
--------------------------------------------------------
The Wall Street Journal reports on October 27, 1998 that
two medical groups claiming to represent about 350 doctors
filed suits against Oxford health Plans, Inc., charging the
company with filing to properly pay physicians, among other
allegations.  The suits seek compensatory and punitive
damages totaling more than $1.1 billion.  The two groups,
Complete Medical Care PC and United Medical Care PC charged
that Oxford failed to provide adequate information to
enable the physicians to be paid properly.  The company
said it hasn't seen the suits, but that it began halting
payments to the groups in August after getting reports that
their affiliated doctors weren't being paid and began
paying those doctors directly.  The total amount withheld
to date, Oxford said, is less than $5 million.

Oxford fell 62.5 cents, or 6.1% to $9.5625 on the Nasdaq
Stock Market.


PERK DEVELOPMENT: Seeks Rejection of Leases
-------------------------------------------
The debtors, Perk Development Corporation and Brambury
Associates seek authority to reject leases of
nonresidential real property located in Batavia, New York,
Lakewood, New York, Henrietta, New York, Williamsville, New
York, and Depew, New York.  According to a valuation report
by DJM Realty Services, Inc., the rent charge per square
foot exceeded significantly the market rent for each
location.


SA TELECOMMUNICATIONS: Files Current Report With SEC
----------------------------------------------------
SA Telecommunications Inc. filed a current report dated
October 13, 1998 with the SEC. The monthly report for the
month ended June 30, 1998 reports a net loss of (136,077)
on net revenue of $1,604,342.


SCOOP INC: Notice of Claims Deadline
------------------------------------
The Bankruptcy Court for the Central District of California
has set a deadline of November 18, 1998 (the "Bar Date")
for creditros fo Scoop, Inc. to file claims against the
debtor's estate and its interest holders ot file proofs-of-
interest.


SCOTT CABLE COMMUNICATIONS: Hearing For Sale Set
------------------------------------------------
The debtor, Scott Cable Communications, Inc, d/b/a American
Cable Entertainment published notice in The Wall Street
Journal, October 26, 1998, that a hearing will be held on
November 13, 1998 to consider the sale motion of the debtor
authorizing the debtor to sell substantially all of its
assets to InterLink Communications Partners, LLP for
$165,000,000 under the terms of a certain sale agreement.

All competing proposals for all or substantially all of the
Assets must, in the aggregate equal or exceed $172,650,000.  
In the event of a competing proposal, InterLink has the
right to offer a "Topping Offer."  Subsequent offers to the
Topping Offer must exceed the Topping Offer by $1 million.


SUN TV: Meeting of Creditors Set
--------------------------------
A meeting of creditors of Sun TV and Appliances Inc. and
Sun Television and Appliances Inc. is scheduled for
November 13, 1998 at 11:00 am at the J. Caleb Boggs Federal
Building, 844 King Street, Room 2313, Wilmington, Delaware
19801.


UNITED HEALTHCARE: Files Prospectus With SEC
--------------------------------------------
United Healthcare Corporation filed a prospectus with the
SEC, dated October 22, 1998.  The amount to be registered
is $1,250,000,000.  The prospectus describes debt
securities, preferred stock, common stock, depositary
shares, securities warrants, of UHC CAPITAL I, UHC CAPITAL
II, UHC CAPITAL III, UHC CAPITAL IV and PREFERRED
SECURITIES.
A full-text copy of the filing is available via the
Internet at:

http://www.sec.gov/Archives/edgar/data/0000950131-98-
005623.txt


UNISON HEALTHCARE: Gets Nod For $2.7 Million Severance Pact
-----------------------------------------------------------
Unison Healthcare Corp. received court authorization to
implement a $2.7 million severance package for 82
employees, with nearly $2.2 million of that going to a
group of 11 employees with the title of vice president or
higher.  The severance packages are based on employee
service periods, with the company's top 11 employees
getting a bonus equal to one year's salary.  Employees are
eligible for the bonuses in the event their employment is
terminated without cause otherwise payments are contingent
on continued employment.  The employees would not be
eligible in the event they declined an offer of continued
employment, according to the agreement. Employees to be
retained will be notified within 90 days of Unison's
reorganization plan effective date. (Federal Filings Inc.
27-Oct-98)


UNISON HEALTHCARE: Seeks Time To Assume Or Reject Leases
--------------------------------------------------------
Unison Healthcare Corporation, Inc. is seeking an order
extending the time within which to assume or reject
unexpired leases of nonresidential real property.

The debtors' Healthcare Entities operate approximately 20
facilities located in Arizona, Alabama, Colorado, Indiana,
Idaho, Kansas, Mississippi, Nevada, Pennsylvania, Texas and
Washington.  Debtors are lessees under leases covering all
of the Healthcare Entities.

The leases are the central critical component of the
debtors' operations, and ultimately of a successful plan of
reorganization.  The Debtors are currently involved in
negotiations with the major creditors in the case.  The
debtors are seeking an additional 90-day extension of time,
up to and including January 20, 1999 or the date any order
confirming the plan in these cases becomes final, to assume
or reject the leases.  The debtors hope to thereby avoid
substantial and unnecessary administrative claims if they
were to prematurely assume the leases only to later
determine that some should be rejected.   The debtor states
that the number of leases alone justifies the extension and
the deb5tor states that without the leases, there is no
business to reorganize.      

                 ***********

The Meetings, Conferences and Seminars column appears in
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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 and Lexy Mueller, Editors.   

Copyright 1998.  All rights reserved.  ISSN 1520-9474.  
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