FORM 10-Q

               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.   20549

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
          SECURITIES EXCHANGE ACT OF 1934

          For the Quarterly Period Ended December 31, 1995

                                or

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF    
          THE SECURITIES EXCHANGE ACT OF 1934

                 Commission file number 1-10281

                    Smith Corona Corporation                      
       (Exact name of registrant as specified in its charter)

            Delaware                              51-0286862      
(State or other jurisdiction of               (I.R.S. Employer
 incorporation or organization)              Identification No.)

      65 Locust Avenue, New Canaan, Connecticut     06840
     (Address of principal executive offices)     (Zip Code)

                            (203) 972-1471                        
     (Registrant's telephone number, including area code)


     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.                Yes   X      No 
    
                                        

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.

                                             Outstanding at
          Class                              January 31, 1996

Common Stock, par value $.01                    30,250,000
per share




                    SMITH CORONA CORPORATION

                             INDEX


                                                            Page

PART I.   FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements

          Consolidated Balance Sheets - December 31, 1995
          and June 30, 1995                                     1

          Consolidated Statements of Operations - For the
          three months and six months ended
          December 31, 1995 and 1994                            2

          Consolidated Statement of Changes in Stockholders'
          Equity - For the six months ended December 31, 1995   3

          Consolidated Statements of Cash Flows - For the
          six months ended December 31, 1995 and 1994           4

          Notes to Consolidated Financial Statements         5-14


Item 2.   Management's Discussion and Analysis of Results of
          Operations and Financial Condition                15-19


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                    19

Item 6.   Exhibits and Reports on Form 8-K                  19-20


Signatures                                                     21

Exhibit Index                                                    





                SMITH CORONA CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
                             ($ in thousands)
<TABLE>
<CAPTION>
                                        December 31,    June 30,
                                            1995          1995  
                                                        (audited)
<S>                                         <C>         <C>
ASSETS
  Current assets:
    Cash and cash equivalents                $ 5,851     $ 7,003
    Accounts receivable (net of allowance
      for doubtful accounts of $1,875 and
      $1,484, respectively)                   36,064      37,654
    Inventories                               27,711      54,335
    Prepaid expenses and other current
      assets                                  13,244       9,471
    Total current assets                      82,870     108,463

  Property, plant and equipment, net          16,452      22,888 
  Deferred income taxes                        3,406       3,406
  Other assets                                 1,257       1,309

    TOTAL                                   $103,985    $136,066

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Bank loans                               $ 5,800    $ 17,400
    Trade payables                             3,219      19,807
    Accrued liabilities                       24,340      35,449
    Income taxes payable                           -       5,791
    Total current liabilities                 33,359      78,447

  Postretirement benefits                         22      12,999
  Pension liability                              555      18,801
  Other long-term liabilities                    114       5,569
  Liabilities subject to compromise           63,750           -
    Total liabilities                         97,800     115,816
  Stockholders' equity:
    Common stock-30,250,000 shares issued 
       and outstanding                           303         303
    Additional paid-in capital                44,697      44,697
    Accumulated deficit                      (38,815)    (24,750)
    Total stockholders' equity                 6,185      20,250
 
    TOTAL                                   $103,985    $136,066
</TABLE>
See accompanying notes to consolidated financial statements.




                SMITH CORONA CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
               ($ in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                    Three months ended  Six months ended
                                        December 31,       December 31, 
                                       1995      1994    1995      1994 
                           
<S>                                 <C>       <C>       <C>     <C>
Net sales                           $ 36,303  $ 63,351  $69,766 $123,465
Cost of goods sold                    35,399    50,076   64,859   97,179
  Gross margin                           904    13,275    4,907   26,286
Selling, administrative
  and research expenses                7,812    12,449   14,567   23,719
Reorganization costs                   2,848         -    6,057        -
Restructuring expense(income)            223         -   (1,301)       -
Other income                          (1,511)        -   (1,096)       -
Operating income (loss)               (8,468)      826  (13,320)   2,567
Interest expense                         198       312      600      555

Income (loss) from continuing
  operations before income
  taxes                               (8,666)      514  (13,920)   2,012
Income taxes (benefit)                   (30)      190      145      744
Income (loss) from continuing
  operations                          (8,636)      324  (14,065)   1,268
Discontinued operations (net of
  income taxes):
Income from discontinued
  operations                               -       115        -      385
Gain on disposal of discontinued
  operations                               -     8,722        -    8,722
Net income (loss)                   ($ 8,636)  $ 9,161 ($14,065)$ 10,375

Earnings per common share-
Income (loss) from continuing
  operations                           ($.29)     $.01    ($.47)    $.04
Discontinued operations (net of
  income taxes):
Income from discontinued
  operations                               -         -        -      .01
Gain on disposal of discontinued
  operations                               -       .29        -      .29
Net income (loss) per share            ($.29)     $.30    ($.47)    $.34
</TABLE>
See accompanying notes to consolidated financial statements.




                SMITH CORONA CORPORATION AND SUBSIDIARIES
       CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                            
               For the six months ended December 31, 1995
                           ($ in thousands)
<TABLE>
<CAPTION>
                                    Additional
                           Common   Paid-In    Accumulated
                            Stock   Capital    Deficit     Total

<S>                          <C>    <C>        <C>       <C>
Balance June 30, 1995        $303   $44,697    $(24,750) $20,250

Net loss                        -         -     (14,065) (14,065)

                                                                
Balance December 31, 1995    $303   $44,697    $(38,815) $ 6,185
</TABLE>
See accompanying notes to consolidated financial statements.





           SMITH CORONA CORPORATION AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF CASH FLOWS
                        ($ in thousands)
<TABLE>
<CAPTION>
                                                 Six months ended
                                                    December 31, 
                                                   1995    1994  
<S>                                            <C>       <C>
  CASH FLOWS FROM OPERATING ACTIVITIES:         
  Net income (loss)                            ($14,065) $10,375 
  Adjustments to reconcile net
    income (loss) to net cash
    provided by (used in) continuing
    operating activities:
      Discontinued operations                         -   (9,107)
      Depreciation and amortization               2,966    2,913 
      Deferred income taxes                           -   (2,349)
      Inventory provisions                        4,243      175
      Other noncash items                          (929)     627
      Changes in assets and liabilities:
          Accounts receivable                     1,175   (7,874)
          Inventories                            23,381     (575)
          Prepaid expenses and
            other current assets                 (1,731)     524
          Other assets                               16     (262)
          Trade payables                         (5,987)  (8,145)
          Accrued liabilities and income taxes
           payable                                 (596)     (83)
          Postretirement benefits and pension
           liability                                577   (1,202)
          Other long-term liabilities               114      218
  Net cash provided by (used in)
    continuing operations                         9,164  (14,765)
  Net cash provided by discontinued 
    operations                                        -      679
  Net cash provided by (used in)
    operating activities                          9,164  (14,086)
  CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from sale of discontinued
    operations                                        -   27,500
  Proceeds from the sale of property,
    plant and equipment                           1,389        -
Capital expenditures                               (105)  (2,601)
  Net cash provided by investing activities       1,284   24,899
  CASH FLOWS FROM FINANCING ACTIVITIES: 
  Bank loans (repayments), net                  (11,600)  (5,002)
  Dividends paid                                      -   (3,025)
  Net cash used in financing activities         (11,600)  (8,027)
  Increase (decrease) in cash and cash
   equivalents                                   (1,152)   2,786
  Cash and cash equivalents:
    Beginning of period                           7,003    6,472
    End of period                               $ 5,851  $ 9,258
</TABLE>
See accompanying notes to consolidated financial statements.




          SMITH CORONA CORPORATION AND SUBSIDIARIES
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
        ($ in thousands, except per share amounts)


NOTE 1 - PETITION FOR REORGANIZATION UNDER CHAPTER 11 AND BASIS 
         OF PRESENTATION

On July 5, 1995, Smith Corona Corporation (the "Company") filed a
voluntary petition for relief under Chapter 11 of the United
States Bankruptcy Code in the District of Delaware.  Prior to
August 18, 1995, the bankruptcy proceedings did not include any
of the subsidiaries of the Company.  On August 18, 1995, SCM
Office Supplies, Inc., SCC LI Corp. (formerly known as Histacount
Corporation) and Hulse Manufacturing Company, all wholly-owned
nonoperating subsidiaries of Smith Corona Corporation, filed
Chapter 11 petitions (collectively, the filings by the Company
and such debtor subsidiaries are referred to herein as the
"Bankruptcy Proceedings").  The Bankruptcy Proceedings primarily
relate to all U.S. assets and operations and do not pertain to
Smith Corona Corporation's international subsidiaries.  Condensed
consolidating financial information for the entities included in
the Bankruptcy Proceedings is presented in Note 10.  Since July
5, 1995, the Company has been operating as a debtor-in-
possession.  Consequently, the consolidated financial statements
have been presented in accordance with the guidelines established
by Statement of Position 90-7, "Financial Reporting by Entities
in Reorganization Under the Bankruptcy Code," as issued by the
American Institute of Certified Public Accountants in November
1990.

The consolidated financial statements have been prepared in
accordance with generally accepted accounting principles
applicable to a going concern, which contemplates the realization
of assets and the satisfaction of liabilities in the normal
course of business.  Accordingly, the consolidated financial
statements do not reflect adjustments or provide for the
potential consequences of the Bankruptcy Proceedings on the
Company.  In particular, the consolidated financial statements do
not purport to show (a) the realizable value of assets on a
liquidation basis or their availability to satisfy liabilities;
(b) prepetition liability amounts that may be allowed for claims
or contingencies or the status and priority thereof; (c) the
effect of any changes that may be made to the capitalization of
the Company; or (d) the effect of any changes that may be made in
the Company's business operations.  The outcome of these matters
is not presently determinable.  The Company has recently
experienced recurring losses from operations; has an accumulated
deficit at December 31, 1995; had difficulty in meeting its
Amended and Restated Revolving Credit Agreement covenants and has
had to obtain waivers to meet certain of its Debtor-In-Possession
Credit Agreement covenants; and cannot presently determine with
certainty the ultimate liability which may result from the filing
of claims in connection with the Bankruptcy Proceedings.  These
conditions raise substantial doubt as to the Company's ability to
continue as a going concern.

Due to the Bankruptcy Proceedings, substantially all claims
against the Company prior to July 5, 1995 (and prior to August
18, 1995 for the three nonoperating subsidiaries added to the
proceedings) are subject to the automatic stay provisions under
the Bankruptcy Code while the Company continues business
operations as a debtor-in-possession.  Pre-petition claims may
arise from the determination by the Bankruptcy Court of allowed
claims for contingencies and other disputed amounts.

Liabilities recorded by the Company as of December 31, 1995 and
June 30, 1995, respectively, that are expected to be compromised
under any plan of reorganization consist of the following:

<TABLE>
<CAPTION>
                                              December 31,      June 30,
                                                  1995            1995  
<S>                                    <C>             <C>
Trade payables                         $10,601         $11,760
Accrued liabilities                     11,670          16,207
Income taxes payable                     5,634           5,634
Postretirement benefits                 12,999          12,999
Pension liability                       17,277          18,801
Other long-term liabilities              5,569           5,569
     Total(1)                          $63,750         $70,970
</TABLE>

(1)  Excludes a net intercompany payable in the amount of $16,691
and $9,076, respectively, to the Company's subsidiaries not
included in the Bankruptcy Proceedings.

The Company recorded reorganization costs for its Bankruptcy
Proceedings aggregating $6,057 for the six months ended December
31, 1995.  These charges include professional fees incurred
during the six month period.

At the Company's request, the Bankruptcy Court established a bar
date of October 31, 1995 for pre-petition claims against the
Company.  A bar date is the date by which claims against the
Company must be filed if the claimants wish to receive any
distribution in the Bankruptcy Proceedings.  The Company has
given notice to all known actual or potential claimants subject
to the bar date of their need to file a proof of claim with the
Bankruptcy Court.  The Company will reconcile claims that differ
from the Company's records, and any differences that cannot be
resolved by negotiated agreement between the Company and the
claimant will be resolved by the Bankruptcy Court.  Accordingly,
allowed claims may arise which are not currently reflected in the
Company's financial statements and recorded claims are subject to
change.  The ultimate amount of and settlement terms for such
liabilities are subject to a plan of reorganization which is
subject to approval by the Bankruptcy Court and, accordingly, are
not presently determinable.

On October 24, 1995, the Company announced that it had reached an
agreement to sell its ongoing business to a group led by Empire
Capital Corporation, an investment company based in Southport,
CT.  On November 20, 1995 the Company announced that it had
terminated the agreement because Empire Capital Corporation did
not fulfill certain contractual requirements necessary to
complete the transaction.  Discussions with other parties which
have expressed interest in acquiring the Company are continuing.


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

The accompanying interim consolidated financial statements,
although not necessarily indicative of results of operations for
the entire fiscal year, include all adjustments of a normal
recurring nature which are, in the opinion of management,
necessary for a fair presentation of the results for the periods
covered.  They have been prepared by Smith Corona Corporation
without audit in accordance with the instructions to Form 10-Q
and should be read in conjunction with the consolidated financial
statements and the notes thereto for the fiscal year ended June
30, 1995, as contained in the Company's Annual Report on Form
10-K.

An administrator was appointed on August 2, 1995 for the
Company's wholly-owned subsidiary in Australia.  The
Administrator was appointed as Liquidator on August 29, 1995. 
Due to the liquidation, the Australian subsidiary's assets,
liabilities and operating results were removed from the
consolidated financial statements as of August 2, 1995 and the
Company has recorded in other expense an estimated loss on
liquidation of approximately $415 in the first quarter of fiscal
1996.  The Company is currently exploring potential distributor
relationships in its Australian market for the purpose of
maintaining its distribution capacity.

Amounts in the prior year's financial statements have been
reclassified to reflect continuing operations (see Note 8).

NOTE 3 - CONTINGENCIES

Certain past practices of the Company regarding hazardous
substances and/or hazardous wastes are the subject of
investigation by federal and state regulatory authorities, or are
the subject of lawsuits filed by such authorities.  At December
31, 1995 and June 30, 1995, the Company had recorded
approximately $4,161 and $4,203, respectively, related to
environmental matters and the amount at December 31, 1995 is
included in liabilities subject to compromise.  Because of the
uncertainties associated with assessing environmental matters,
the related ultimate liability is not determinable.  However,
based on facts presently known, management does not believe that
these investigations or lawsuits, if resolved adversely to the
Company, would individually or in the aggregate have a material
adverse effect on the Company's financial position or results of
operations.

The Company is involved in proceedings with the New York
Department of Environmental Conservation (DEC) and the United
States Environmental Protection Agency regarding the clean-up of
a now-closed manufacturing facility and certain waste disposal
sites in upstate New York.  The remedial investigation and
feasibility study of the now-closed manufacturing facility site
has been completed and the record of decision has been finalized. 
On March 31, 1993, the Company executed a final consent order
with the DEC for the implementation of a remedial program for the
site.  Design, construction and start-up activities related to
the selected remedial program are underway.  Management believes
that the Company has made adequate provision for the approved
remediation activities.

In June 1992, the Company was served with a summons and complaint
in the U.S. District Court, Northern District of New York, in a
private contribution action.  The plaintiffs in this action are
Coopers Industries, Inc., Keystone Consolidated Industries, Inc.,
The Monarch Machine Tool Co., Niagara Mohawk Power Corporation
and Overhead Door Corporation.  The action, which lists the
Company as a defendant with fourteen other defendants, seeks
contribution for response costs incurred to date, and to be
incurred in the future, for the remediation of a site in
Cortland, New York.  Management does not believe it disposed of
any hazardous substances at this site and is vigorously
contesting this matter.

The Company filed a complaint on November 4, 1994 against CoStar
Corporation("CoStar") seeking (i) a declaratory judgment that the
Company was not infringing CoStar's trade dress, (ii) damages for
breach of warranty and fraud and (iii) rescission of contracts
induced by such fraud.  The complaint related to envelope
printers purchased by the Company from CoStar and label printers
manufactured by a third party for the Company.  CoStar
subsequently filed an answer denying the Company's allegations
and asserting counterclaims alleging that the Company had
infringed its label printer's trade dress, breached the
provisions of a confidentiality agreement between the Company and
CoStar, and tortiously injured CoStar's business reputation.  In
addition, CoStar filed a related third-party complaint against DH
Technology, Inc. ("DH").  On June 23, 1995, the Company entered
into a Settlement Agreement with CoStar and DH in connection with
the lawsuit.  Pursuant to the Settlement Agreement, the Company
agreed, among other things, to pay CoStar the sum of $55,085 on
each of June 23, 1995, July 31, 1995, August 31, 1995 and
September 29, 1995 and to return certain tooling and equipment to
CoStar, in exchange for, among other things, the release by
CoStar of its claims against the Company.  The payments required
for June 23, 1995, July 31, 1995 and August 31, 1995 are included
in liabilities subject to compromise at December 31, 1995.

The Company is also a defendant or plaintiff in various other
legal actions which have arisen in the ordinary course of its
business.  It is the opinion of management, based on advice of
counsel with respect to legal matters, that the ultimate
resolution of these matters and the environmental matters
discussed above will not have a material adverse effect on the
Company's financial position or results of operation.

NOTE 4 - INVENTORIES

A summary of inventories, by major classification, is as
follows:
<TABLE>
<CAPTION>
                                 December 31,       June 30,
                                     1995             1995  
<S>                                <C>              <C>
Raw materials and supplies         $    43          $   995 
Work-in-process                      9,046           17,807 
Finished goods                      18,622           35,533 
     Total                         $27,711          $54,335 
</TABLE>

NOTE 5 - RESTRUCTURING COSTS

Over the past few years, the Company has faced intense
competition from foreign producers.  On May 8, 1995 the Company
announced a major restructuring plan whereby the Company's
typewriter manufacturing will be relocated from its Singapore and
Batam Island, Indonesia facilities to its Mexico facility.  This
action will result in the termination of approximately 1,300
workers in Singapore and Batam who will be replaced with
approximately 600 workers in Mexico.  This action is expected to
save approximately $10,000 pretax annually primarily through
lower labor costs as well as the greater utilization of the
Mexico facility.  The Company ceased production in Singapore and
Batam Island, Indonesia in November 1995, and relocated equipment
to Mexico where typewriter production commenced in December 1995. 
The Company sold its Singapore facility and the underlying land
lease on February 8, 1996 for net proceeds of approximately
$20,300.  The sale is expected to result in a third quarter
pretax gain of approximately $16,700.

In addition to the relocation of typewriter manufacturing to
Mexico, the Company also eliminated approximately 180 support
positions within research and development, finance, service,
distribution, selling and marketing areas in both its Cortland,
New York and New Canaan, Connecticut locations.  Approximately
$10,000 in additional annual pretax savings are expected from
elimination of these support positions.  These reductions were
completed by the end of the first quarter of fiscal 1996 and
resulted in a first quarter pension curtailment gain of
approximately $1,524.

The net result of these actions reduced the Company's May 8, 1995
workforce of approximately 2,500 by approximately 680.

As a result of these actions, the Company recorded a pretax
charge of approximately $14,870 in the fourth quarter of fiscal
1995, of which approximately $1,877 represents primarily non-cash
machinery and equipment asset write-offs, and the remainder
relates to employee severance.  Additionally, certain costs,
primarily relating to the move of machinery and equipment,
temporary lease-back of facilities, and renovations, of
approximately $6,000 pretax, will be recognized as charges to
operations as incurred during fiscal year 1996.

The activity in the restructuring accrual is as follows:

<TABLE>
<CAPTION>
                                    Asset
                                   Impair-   Other
                       Severance    ments    Costs    Total
<S>                    <C>         <C>       <C>      <C>
June 30, 1995 balance  $11,494     $1,492    $ 285    $13,271
Fiscal 1996 Activity(1)   (593)    (1,354)       -     (1,947) 
December 31, 1995 
  balance              $10,901      $ 138    $ 285    $11,324
</TABLE>

(1)  Represents cash payments for severance of approximately $101
     and non-cash items for foreign currency exchange rate
     changes, severance provision adjustments and asset
     impairments.

In July 1992, in order to maintain its leadership as the low-cost
producer in a highly competitive worldwide business, the Board of
Directors approved, and the Company announced, a plan to phase
out the Company's manufacturing operations in Cortland, New York
and relocate them to a new facility in Mexico.  As a result of
this decision, during fiscal 1993, the Company provided $16,500
in restructuring charges, of which approximately $3,000 was non-
cash in nature.  The Mexican facility was fully operational in
fiscal year 1995 and the anticipated annual savings of
approximately $15,000 were substantially realized.  The fiscal
1996 activity in the restructuring accrual is as follows:

<TABLE>
<CAPTION>                                                               

                                                   Severance       Total
<S>                                  <C>       <C>
June 30, 1995 balance                $50       $50
Fiscal 1996 Activity                 (50)      (50)
December 31, 1995 balance            $ -       $ - 
</TABLE>

NOTE 6 - CASH FLOWS

Aggregate borrowings under the Company's credit facility amounted
to $1,291,100 and $560,008 for the six months ended December 31,
1995 and 1994, respectively, while aggregate repayments were
$1,302,700 and $565,010 for the same periods, respectively.

NOTE 7 - BANK LOANS
     
On April 7, 1995, the Company entered into an Amended and
Restated Revolving Credit Agreement (the "Amended and Restated
Credit Agreement") with two banks (the "Lenders"), the use of
which was generally to satisfy working capital requirements.  The
Amended and Restated Credit Agreement provided for extensions of
revolving credit loans and letters of credit, limited to a
percentage of eligible receivables and inventories, in an amount
not to exceed $30,000 up through March 30, 1996; the aggregate
principal amount of such lending commitment reduces to an amount
not in excess of $25,000 from March 31, 1996 through the July 1,
1996 termination date.  The Amended and Restated Credit Agreement
was secured by a security interest in the domestic assets of the
Company pursuant to a Security Agreement of even date therewith.  
Interest was at variable rates equal to the greater of the prime
rate of interest, the base certificate of deposit rate plus 1.0
percent or the federal funds effective rate plus .5 percent for
any day.

The Amended and Restated Credit Agreement contained certain
covenants, including restrictions on payment of dividends and
limitations on sale of assets, capital expenditures, incurrence
of other debt, liens or guarantees and making of investments,
loans and advances.  The primary financial covenants included (i)
not permitting consolidated tangible net worth at the end of any
fiscal quarter to be (a) less than it was as of March 31, 1995
minus $3,000 plus (b) 80.0 percent of consolidated net income for
all full fiscal quarters subsequent to March 31, 1995, (ii)
maintaining a ratio of current assets (other than inventories) to
current liabilities (other than loans outstanding under the
Amended and Restated Credit Agreement) of at least 0.9 to 1.0 and
(iii) maintaining minimum operating profit levels.  As of June
30, 1995, the Company was in technical default of its Amended and
Restated Credit Agreement; however, the loan was paid in full in
July 1995.

On July 10, 1995, the Company entered into a Debtor-In-Possession
Credit Agreement (the "Debtor-In-Possession Credit Agreement")
with its Lenders which was approved by the United States
Bankruptcy Court for the District of Delaware on August 2, 1995. 
The proceeds of the Debtor-In-Possession Credit Agreement were
used to repay the amounts outstanding under the Amended and
Restated Credit Agreement.  The Debtor-In-Possession Credit
Agreement, as amended, provides for extensions of revolving
credit loans, term loans and letters of credit, limited to a
percentage of eligible receivables and inventories, in an amount
not to exceed $24.0 million through the June 30, 1996 termination
date.  Interest is 2 percent over the greatest of the Prime Rate,
Base CD Rate plus 1 percent or Federal Funds Effective Rate plus
 .5 percent.  Payments of dividends is prohibited by the terms of
the Debtor-In-Possession Credit Agreement, under which the
Company is limited to maximum monthly amounts of inventory and
cash disbursements.  Additionally, the Company is restricted to
$500 of capital expenditures in each six month period ended
December 31, 1995 and June 30, 1996.  Management believes that it
has adequate flexibility and that such covenants should not
impose undue restrictions on the operations of the Company during
its Bankruptcy Proceedings.  The Company is currently in
compliance with the terms of the Debtor-In-Possession Credit
Agreement or has obtained waivers as necessary.  The Debtor-In-
Possession Credit Agreement is secured by substantially all of
the Company's assets.

NOTE 8 - DISCONTINUED OPERATIONS

On November 4, 1994 the Company sold substantially all of the
assets and liabilities of Histacount Corporation, a wholly-owned
subsidiary, for $14,500.  The after-tax gain on the sale includes
utilization of a capital tax-loss carry-forward.  On July 5, 1994
the Company sold substantially all of the assets and liabilities
of SCM Office Supplies, Inc., a wholly-owned subsidiary, for
$13,000.  The proceeds from the two sales were used to reduce the
Company's debt.  Accordingly, the prior year income statement
reflects Histacount Corporation's operating results as
discontinued operations.

Summary operating results of discontinued operations are as
follows:
<TABLE>
<CAPTION>
                           Three months ended                 Six months ended
                           December 31, 1994                 December 31, 1994
<S>                             <C>                     <C>
Net sales                       $1,747                  $5,774

Income from operations
 before income taxes               182                     612
Income taxes                        67                     227
Net income from operations         115                     385
Gain on disposal of assets
 (Net of tax benefit of $285)    8,722                   8,722
Net income                      $8,837                  $9,107
</TABLE>

NOTE 9 - DIVIDENDS 

On May 4, 1995 the Board of Directors elected to omit the
dividend.  The dividend declared in the first and second quarters
of fiscal 1995 was $.05 and $.025 per share of common stock,
respectively. 

NOTE 10 - CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The following proforma financial information shows the effects of
adoption of Statement of Position 90-7, "Financial Reporting by
Entities in Reorganization Under the Bankruptcy Code," and
separates the consolidated balance sheets as of December 31,
1995, and consolidated statements of operations and cash flows
for the six months then ended, of those entities that are
included in the Bankruptcy Proceedings and those that are not.  

              Condensed Consolidating Balance Sheets
<TABLE>
<CAPTION>
                                               Non-
                        Debtor-In   Debtor-In                               
                       Possession  Possession             Elimin-    Consol-           
                         Entities    Entities              ations     idated           
<S>                      <C>        <C>                  <C>        <C>     
Current assets           $ 55,934  $ 26,936   $      -            $ 82,870
Property, plant
 and equipment             13,002     3,450          -              16,452
Other assets               81,864    16,657    (93,858)              4,663
   Total assets          $150,800   $47,043   $(93,858)           $103,985

Bank loans                $ 5,800   $     -  $       -             $ 5,800
Other current
 liabilities               16,040    11,519          -              27,559
Intercompany with 
 affiliates                16,691   (16,691)         -                   -
Other long-term
 liabilities                  691         -          -                 691
Liabilities subject
 to compromise             63,750         -          -              63,750
Stockholders' equity       47,828    52,215    (93,858)              6,185
Total liabilities and
 stockholders' equity    $150,800   $47,043   $(93,858)           $103,985
</TABLE>

             Condensed Consolidating Statements of Operations
<TABLE>
<CAPTION>
                                              Non-
                             Debtor-In   Debtor-In                               
                            Possession  Possession             Elimin-    Consol-
                              Entities    Entities              ations     idated
<S>                               <C>        <C>         <C>       <C>
Net sales                         $ 54,366   $15,400     $      -  $ 69,766
Net sales to affiliates              6,706    16,775      (23,481)        -
Cost of goods sold                  51,807    13,052            -    64,859
Cost of goods sold to
 affiliates                          5,630     17,851     (23,481)        -
Gross margin                         3,635      1,272           -     4,907
Selling, administrative
 and research expenses              11,107      3,460           -    14,567
Restructuring expense (income)      (1,524)       223           -    (1,301)
Reorganization costs                 6,057          -           -     6,057
Other expense (income)              (2,596)     1,500           -    (1,096)
Operating loss                      (9,409)    (3,911)          -   (13,320)
Interest expense                       600          -           -       600 
Loss from operations
 before income tax                 (10,009)    (3,911)          -   (13,920)
Income taxes (benefit)                 251       (106)          -       145
Net loss                          $(10,260)  $ (3,805)   $      -  $(14,065)
</TABLE>




               Condensed Consolidating Statements of Cash Flows
<TABLE>
<CAPTION>
                                            Non-
                                Debtor-In   Debtor-In         
                               Possession  Possession   Elimin-   Consol- 
                                 Entities    Entities    ations   idated  
<S>                      <C>        <C>        <C>        <C>
Cash Flows from
 operating activities:
Net loss                 $(10,260)  $(3,805)   $      -   $(14,065)
Adjustments to
 reconcile net loss
 to net cash used in
 continuing operating
 activities:
  Noncash items and
   changes in 
   operating assets
   and liabilities         18,635     4,594           -     23,229

Net cash flow provided
 by operating activities    8,375       789           -      9,164
Cash flows from
 investing activities:
Proceeds from sale of
 property, plant and
 equipment                  1,389         -           -      1,389
Capital expenditures          (75)      (30)          -       (105)
Net cash provided by
 (used in) investing
 activities                 1,314       (30)          -      1,284
Cash flows from
 financing activities:
Bank loans
 (repayments), net        (11,600)        -           -    (11,600)
Net cash Used in
 financing activities     (11,600)        -           -    (11,600)
Increase (decrease)
 in cash and cash
 equivalents               (1,911)      759           -     (1,152)
Cash and cash
 equivalents at
 beginning of year          3,027     3,976           -      7,003
Cash and cash
 equivalents at
 end of year              $ 1,116    $4,735    $      -   $  5,851
</TABLE>


<PAGE>
ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF  
                  OPERATIONS AND FINANCIAL CONDITION

With the Company experiencing sales declines and operating
losses, having extended payments to trade vendors, and needing
additional financing to meet operating requirements and fund the
restructuring program, the Company filed a voluntary petition
for reorganization under Chapter 11 of the Bankruptcy Code in
the United States Bankruptcy Court for the District of Delaware
on July 5, 1995. Prior to August 18, 1995, the bankruptcy
proceedings did not include any of the subsidiaries of the
Company.  On August 18, 1995, SCM Office Supplies, Inc., SCC LI
Corp. (formerly Histacount Corporation) and Hulse Manufacturing
Company, all wholly-owned nonoperating subsidiaries of the
Company, filed Chapter 11 petitions.

An administrator was appointed on August 2, 1995 for the
Company's wholly-owned subsidiary in Australia.  The
Administrator was appointed as Liquidator on August 29, 1995. 
Due to the liquidation, the Australian subsidiary's assets,
liabilities and operating results were removed from the
consolidated financial statements as of August 2, 1995 and the
Company has recorded in other expense an estimated loss on
liquidation of approximately $.4 million in the first quarter of
fiscal 1996.  The Company is currently exploring potential
distributor relationships in its Australian market for the
purpose of maintaining its distribution capacity.

On November 4, 1994 the Company sold substantially all the
assets and liabilities of Histacount Corporation.  Accordingly,
the consolidated statement of operations for fiscal year 1995
reflects their operating results as discontinued operations. 
The following discussion of results of operations and financial
condition is presented for continuing operations only.

                       Results of Operations

Net sales of $36.3 million for the quarter ended December 31,
1995 decreased 42.7 percent from last year's second quarter net
sales of $63.4 million.  Approximately 92.7 percent of the
second quarter decrease related to lower volumes with the
balance related to pricing reductions.

Typewriters and personal word processor volumes are sharply
lower than a year ago, both domestically and internationally, as
a result of a continuing difficult competitive environment.  The
Company believes that the market for typewriters and personal
word processors is declining along with its share of that
market.  New product net sales for the quarter were $2.1 million
as compared with $4.2 million a year ago.

In the second quarter the Company had a gross margin as a
percentage of net sales of 2.5 percent reducing the gross margin
to 7.0 percent for the six months ended December 31, 1995, as
compared to 21.0 percent and 21.3 percent, for the comparable
periods last year.  In addition to volume declines noted above,
gross margin was also adversely impacted by a second quarter
charge of approximately $4.4 million for inventory-related
provisions.

Selling, general and administrative expenses for the three and
six months ended December 31, 1995 decreased $4.6 million and
$9.2 million, respectively, from the comparable prior periods
last year, which reflects the impact of fiscal 1995
restructuring actions.

The Company recorded reorganization costs for its Bankruptcy
Proceedings aggregating $2.8 million and $6.1 million for the
three and six months, respectively.  These charges included
professional fees incurred during the first six months of fiscal
1996.  There were no such items during the first six months of
fiscal 1995.

Restructuring expense (income) primarily represents a pension
plan curtailment gain offset by additional machinery and
equipment writedowns resulting from the restructuring action
announced in May 1995.  Additionally, costs associated with the
restructuring action of approximately $.3 million and $.7
million, primarily related to the move of machinery, equipment
and inventory and shut-down of Singapore manufacturing
operations, are included in cost of sales and selling, general
and administrative expenses, respectively. 

In October 1995, the Company completed a transaction to purchase
a building previously used as warehousing space located in
Cortland, New York and to concurrently sell the building and
land on which the building is located to a third party
purchaser.  The net proceeds of approximately $1.3 million were
used to paydown the bank loan and represent a fiscal year 1996
second quarter gain included in other income and expense.

The provision for income taxes for the three and six months
ended December 31, 1995 relates principally to foreign-sourced
income.  As a result of the Bankruptcy Proceedings and the
short-term outlook, deferred tax assets, which resulted from
year-to-date fiscal 1996 operating losses, have been fully
offset by valuation allowances.

                       Financial Condition

The Company's primary source of liquidity and capital resources,
on both a short- and long-term basis, are cash flows generated
from operations and borrowing under its Debtor-In-Possession
Credit Agreement.

The Bankruptcy Proceedings restrict the Company's ability to
provide direct financial support outside of the normal course of
business to its international subsidiaries without the approval
of the Bankruptcy Court.  Furthermore, certain actions,
including actions outside of the normal course of business, must
be approved by the Bankruptcy Court.

On July 10, 1995, the Company entered into a Debtor-In-
Possession Credit Agreement (the "Debtor-In-Possession Credit
Agreement") with two banks (the "Lenders") which was approved by
the Bankruptcy Court on August 2, 1995.  The Debtor-In-
Possession Credit Agreement paid-off the Amended and Restated
Credit Agreement (described below).  The Debtor-In-Possession
Credit Agreement, as amended, provides for extensions of
revolving credit loans, term loans and letters of credit,
limited to a percentage of eligible receivables and inventories,
in an amount not to exceed $24.0 million through the June 30,
1996 termination date.  The Debtor-In-Possession Credit
Agreement provides for a security interest in substantially all
of the Company's assets and imposes certain restrictive
covenants.  Management believes that it has adequate flexibility
under the Debtor-In-Possession Credit Agreement and that such
covenants should not impose undue restrictions on the operations
of the Company during its Bankruptcy Proceedings.  The Company
is currently in compliance with the terms of the Debtor-In-
Possession Credit Agreement or has obtained waivers as
necessary.  Subsequent to December 31, 1995, the Company has
reduced its bank loans to zero.

On April 7, 1995, the Company entered into an Amended and
Restated Revolving Credit Agreement (the "Amended and Restated
Credit Agreement") with the Lenders.  The Amended and Restated
Credit Agreement provided for extensions of revolving credit
loans and letters of credit, limited to a percentage of eligible
receivables and inventories, in an amount not to exceed $30.0
million up through March 30, 1996; the aggregate principal
amount of such lending commitment decreased to an amount not in
excess of $25.0 million from March 31, 1996 through the July 1,
1996 termination date.  The Amended and Restated Credit
Agreement was secured by a security interest in the domestic
assets of the Company pursuant to a Security Agreement of even
date therewith.  On June 9, 1995, the Company announced that it
was in technical default of the Amended and Restated Credit
Agreement due to the restructuring charge announced May 8, 1995.

Due to the Bankruptcy Proceedings, substantially all claims
against the Company prior to July 5, 1995 (and prior to August
18, 1995 for the three nonoperating subsidiaries added to the
Bankruptcy Proceedings) are subject to the automatic stay
provisions under the Bankruptcy Code while the Company continues
business operations as a debtor-in-possession. Pre-petition
claims may arise from the determination by the Bankruptcy Court
of allowed claims for contingencies and other disputed amounts.

At the Company's request, the Bankruptcy Court established a bar
date of October 31, 1995 for pre-petition claims against the
Company.  A bar date is the date by which claims against the
Company must be filed if the claimants wish to receive any
distribution in the Bankruptcy Proceedings.  The Company has
given notice to all known actual or potential claimants subject
to the bar date of their need to file a proof of claim with the
Bankruptcy Court.  The Company will reconcile claims that differ
from the Company's records, and any differences that cannot be
resolved by negotiated agreement between the Company and the
claimant will be resolved by the Bankruptcy Court.  Accordingly,
allowed claims may arise which are not currently reflected in
the Company's financial statements and recorded claims are
subject to change. 
The ultimate amount of and settlement terms for such liabilities
are subject to a plan of reorganization which is subject to
approval by the Bankruptcy Court and, accordingly, are not
presently determinable.

On October 24, 1995, the Company announced that it had reached
an agreement to sell its ongoing business to a group led by
Empire Capital Corporation, an investment company based in
Southport, CT.  On November 20, 1995 the Company announced that
it had terminated the agreement to sell because Empire Capital
Corporation did not fulfill certain contractual requirements
necessary to complete the transaction.  Discussions with other
parties which have expressed interest in acquiring the Company
are continuing.

As represented in the consolidated statement of cash flows for
the six months ended December 31, 1995, the Company's operating
activities provided $9.2 million of cash, primarily the result
of a decrease in inventories.  The reduction in inventories of
$23.4 million reflects the Company's continued focus on
controlling inventory levels. Trade payables decreased $6.0
million primarily as a result of the wind-down of Singapore
operations.

The Company had no material commitments for capital expenditures
at December 31, 1995.  Under the provisions of the Debtor-In-
Possession Credit Agreement, the Company is restricted to $.5
million of capital expenditures in each six month period ended
December 31, 1995 and June 30, 1996.

From time to time the Company enters into foreign exchange
contracts to reduce its exposure to foreign currency rate
changes.  As of December 31, 1995, no contracts were
outstanding.

The Company sold its Singapore facility and underlying land
lease on February 8, 1996 for net proceeds of approximately
$20.3 million.  The sale is expected to result in a third
quarter pretax gain of approximately $16.7 million.

While the Company believes it has adequate financing to operate
in bankruptcy for a reasonable period of time, its ability to
successfully continue operations is dependent upon, among other
things, confirmation of a plan of reorganization that will
enable the Company to emerge from bankruptcy proceedings,
obtaining adequate post-confirmation financing to fund
restructuring and working capital requirements, successfully
implementing the restructuring program, and generating
sufficient cash from operations and financing sources to meet
obligations.  There can be no guarantee that any or all of the
above noted actions will be accomplished.

PART II - Other Information

Item 1.   Legal Proceedings.

          Information required by this item is incorporated by
          reference from "Note 3 - Contingencies" in the Notes
          to Consolidated Financial Statements appearing on 
          page 7 of this Form 10-Q Quarterly Report.

Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits

               10  Third Amendment to the Debtor-In
                   -Possession Credit Agreement dated
                   as of December 6, 1995.
                  
               27  Financial Data Schedule


          (b)  Reports on Form 8-K

               Two Current Reports on Form 8-K were filed
               with the Commission during the second 
               quarter of the Company's 1996 fiscal year.

               1.  The Form 8-K Current Report dated October 30,
1995 announced under Item 5 that Smith Corona Corporation
solicited and received proposals from third parties to acquire
the ongoing business of the Company through a plan of
reorganization which would satisfy a portion of the Company's
liabilities but which would provide no consideration to
stockholders.

               Also, the Company reported on such date under
Item 5 that it had reached an agreement to sell its ongoing
business to a group led by Empire Capital Corporation.

               2.   The Form 8-K Current Report dated December
4, 1995 announced under Item 5 that Smith Corona Corporation
terminated the agreement reached on October 24, 1995 to sell its
business to Empire Capital Corporation.  Smith Corona said the
action was taken because Empire did not fulfill certain
contractual requirements necessary for the transaction to be
completed, and that discussions with other parties which have
expressed interest in acquiring Smith Corona would continue.




                    SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.




                                   SMITH CORONA CORPORATION




February 13, 1996
                              By: /s/  John A. Piontkowski 
                                  John A. Piontkowski
                                  Senior Vice President,
                                  Chief Financial Officer and
                                  Treasurer (Principal Financial
                                  Officer)

                              By: /s/ Martin D. Wilson     
                                  Martin D. Wilson
                                  Controller (Principal
                                  Accounting Officer)




                         EXHIBIT INDEX
                                

Exhibit

EX-10   Third Amendment to the Debtor-In-Possession Credit
        Agreement dated as of December 6, 1995.
EX-27   Financial Data Schedule (electronically filed only)