KAPOK CORP <KPK> IN TECHNICAL DEFAULT
Kapok Corp said it is in
techical default of its loans from Southeast Banking Corp <STB>
and Murray Steinfeld but is negotiating with the lenders.
    It said neither has declared the loans due.
    The company said it has agreed to sell the Peter Pan
Restaurant in Urbana, Md., for 1,100,000 dlrs, or one mln dlrs
after the payment of expenses.
 Reuter
