AUDITORS QUALIFY MCO RESOURCES <MCR> REPORT
MCO Resources Inc said its independent
auditors have qualified their opinion on the company financial
statements for 1986, in which it posted a net loss of 38.6 mln
dlrs or 1.37 dlrs a share on revenues of 31.4 mln.
    MCO said the qualfied opinion related to its realization of
the carrying amount of its geothermal property and its ability
to continue as an ongoing concern, which is dependent upon the
restructuring of the company's bank debt and other obligations,
resolution of the uncertainties surrounding its geothermal
operations and the success of future operations.
    The company said its capital spending for 1987 has been
virtually eliminated and that an additional staff reduction of
about 20 pct is being implemented today.
 Reuter
