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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 1998

                        Commission file number: 0-24740


                           RESURGENCE PROPERTIES INC.

             (Exact name of registrant as specified in its charter)



           MARYLAND                                              13-3757163
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


                           c/o Wexford Management LLC
                   411 West Putnam Avenue, Greenwich, CT 06830
                    (Address of principal executive offices)

                                 (203) 862-7000
              (Registrant's telephone number, including area code)

                                      None
              (Former name, former address and former fiscal year,
                          if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 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:

As of May 1,  1998,  there were  10,000,000  shares of Common  Stock,  $0.01 par
value, outstanding.
<PAGE>
                           RESURGENCE PROPERTIES INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION                                              

Item 1.           Financial Statements

                      Unaudited   Consolidated   Statements  of  Net  Assets  in
                      Liquidation as of March 31, 1998 and December 31, 1997

                      Unaudited  Consolidated Statement of Changes in Net Assets
                      in Liquidation for the Three Months ended March 31, 1998

                      Unaudited  Consolidated  Statement  of  Operations  (Going
                      Concern Basis) for the Three Months ended March 31, 1997

                      Unaudited  Consolidated  Statement  of Cash  Flows  (Going
                      Concern Basis) for the Three Months ended March 31, 1997

                      Notes to Unaudited Consolidated Financial Statements

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


PART II - OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K     


SIGNATURES  

<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF NET ASSETS IN LIQUIDATION
(Dollars in thousands except per share amounts)
-------------------------------------------------------------------------------------

                                                   March 31, 1998   December 31, 1997
                                                   --------------   -----------------
<S>                                                     <C>              <C>
ASSETS

     REAL ESTATE ASSETS ......................          $12,465          $17,121

     CASH AND CASH EQUIVALENTS ...............            5,773              408

     RESTRICTED CASH .........................            1,000            1,500
                                                        -------          -------

         TOTAL ASSETS ........................           19,238           19,029
                                                        -------          -------


LIABILITIES

     LIQUIDATING DISTRIBUTION PAYABLE ........            6,000             --

     MORTGAGE NOTE PAYABLE ...................            4,596            4,701

     ESTIMATED COSTS OF LIQUIDATION ..........              465              470

     ACCRUED MANAGEMENT DISTRIBUTION .........              588              555

     REDEEMABLE PREFERRED STOCK ..............              300              300
                                                        -------          -------

         TOTAL LIABILITIES ...................           11,949            6,026
                                                        -------          -------

COMMITMENTS AND CONTINGENCIES

NET ASSETS IN LIQUIDATION ....................          $ 7,289          $13,003
                                                        =======          =======

NET ASSETS IN LIQUIDATION PER SHARE
  (10,000,000 sharesoutstanding) .............          $  0.73          $  1.30
                                                        =======          =======



</TABLE>
See notes to unaudited consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION
(Dollars in thousands)
-------------------------------------------------------------------------------- 


                                                            For the three months
                                                            Ended March 31, 1998
                                                            --------------------
<S>                                                              <C>
Net assets in liquidation, January 1, 1998 ...............       $ 13,003

Dividend Declared ........................................         (6,000)

Net changes in net assets in liquidation .................            286
                                                                 --------

Net assets in liquidation, March 31, 1998 ................       $  7,289
                                                                 ========

</TABLE>
See notes to unaudited consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (GOING CONCERN BASIS) 
(Dollars in thousands, except share and per share amounts)
---------------------------------------------------------------------------------------

 
                                                                   For the three months
                                                                      ended March 31,
                                                                           1997
                                                                          ------
<S>                                                                       <C>
REVENUES:
     Minimum rents ..............................................         $2,703
     Recoveries from tenants ....................................            578
     Investment income ..........................................            124
     Net gain from asset dispositions ...........................          3,296
     Other ......................................................             80
                                                                          ------
         Total revenues .........................................          6,781
                                                                          ------

EXPENSES:
     Property operations ........................................          1,396
     Interest expense ...........................................            109
     Non-income producing assets ................................             64
     Management fees ............................................            448
     General and administrative .................................            167
     Depreciation and amortization ..............................            398
                                                                          ------
         Total expenses .........................................          2,582
                                                                          ------

INCOME BEFORE INCOME TAXES ......................................          4,199

     Income Taxes ...............................................           --
                                                                          ------

NET INCOME ......................................................         $4,199
                                                                          ======

NET INCOME PER COMMON SHARE (10,000,000 shares outstanding): ....         $ 0.42
                                                                          ======


</TABLE>
See notes to unaudited consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (GOING CONCERN BASIS)
(Dollars in thousands)
----------------------------------------------------------------------------------------

                                                                    For the Three Months
                                                                     ended March 31,
                                                                          1997
                                                                       --------
<S>                                                                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ...................................................         $  4,199
Adjustments to reconcile net income to net cash provided by
   Operating activities:
     Depreciation and amortization:
         Operating real estate properties ....................              306
         Other assets ........................................               92
     Net gain from asset dispositions ........................           (3,296)
     Straight-line adjustment for stepped rentals ............               84
     Net changes in operating assets and liabilities .........             (730)
                                                                       --------

         Net cash provided by operating activities ...........              655
                                                                       --------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Net proceeds from sales of assets .......................           25,834
     Net collections on mortgage loans .......................              299
     Improvements to operating properties ....................             (153)
                                                                       --------

         Net cash provided by investing activities ...........           25,980
                                                                       --------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Senior debt repayments, net .............................           (2,490)
     Mortgage loan repayments ................................             (143)
     Preferred stock dividends ...............................               (7)
                                                                       --------

         Net cash used for financing activities ..............           (2,640)
                                                                       --------

NET INCREASE IN CASH AND CASH EQUIVALENTS ....................           23,995

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .............            4,378
                                                                       --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD ...................         $ 28,373
                                                                       ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid for interest ..................................         $    128
                                                                       ========
</TABLE>
See notes to unaudited consolidated financial statements
<PAGE>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts)

A.       ORGANIZATION AND ACCOUNTING POLICIES

         Resurgence  Properties  Inc. and its  subsidiaries  (the "Company") are
         engaged in diversified real estate  activities.  The Company is managed
         and administered by Wexford Management LLC ("Wexford").

         On April 24, 1997,  the Board of Directors  approved a plan of complete
         liquidation  and  dissolution  of the Company  (the  "Plan")  which was
         approved by a majority vote of the  shareholders on September 26, 1997.
         The key  features of the Plan are:  (1) the  cessation  of all business
         activities,  other than those in  furtherance of the Plan; (2) the sale
         or disposition of all of the Company's assets;  (3) the satisfaction of
         all   outstanding   liabilities;   (4)  the   payment  of   liquidating
         distributions  to  shareholders  in complete  redemption  of the Common
         Stock;  and  (5)  the  authorization  of  the  filing  of  Articles  of
         Dissolution.  As a result  of the  adoption  of the Plan,  the  Company
         adopted the  liquidation  basis of accounting  effective  July 1, 1997,
         whereby assets are valued at their estimated net realizable  values and
         liabilities  are  stated at their  estimated  settlement  amounts.  The
         valuation  of  assets  and  liabilities  requires  many  estimates  and
         assumptions by management and there are  substantial  uncertainties  in
         carrying out the  provisions of the Plan.  The amount and timing of any
         liquidating  distributions  will  depend  upon  a  variety  of  factors
         including, but not limited to, the actual proceeds from the sale of any
         of  the  Company's  assets,  the  ultimate  settlement  amounts  of the
         Company's  liabilities  and  obligations,   actual  costs  incurred  in
         connection  with carrying out the Plan,  including  management fees and
         administrative  costs during the liquidation  period, and the timing of
         the liquidation and dissolution.  Accruals totaling  approximately $465
         have been recorded as of March 31, 1998 for the estimated  future costs
         of liquidating the Company which include, but are not limited to, costs
         of  disposing  of  the  Company's  remaining  assets  and  general  and
         administrative costs through the estimated conclusion of liquidation.

         The accompanying financial statements,  notes and discussions should be
         read in conjunction with the consolidated financial statements, related
         notes and discussions  contained in the Company's annual report on Form
         10-K for the year ended December 31, 1997.

         The  interim  financial  information  contained  herein  is  unaudited;
         however,  in the opinion of management,  all adjustments  necessary for
         the fair presentation of such financial information have been included.

         The December 31, 1997 year-end  balance sheet data presented herein was
         derived from  audited  financial  statements,  but does not include all
         disclosures required by generally accepted accounting principles.
 
 B.      RESTRICTED ASSETS

         The  Company  believes  that in  addition  to the  costs  and  expenses
         associated  with  facilitating  the plan,  it is necessary to set aside
<PAGE>
         cash or other assets as a Contingency Reserve of approximately  $1,000.
         No liability  has been accrued for such  contingencies.  Following  the
         payment,  satisfaction or other resolution of such  contingencies,  the
         Plan provides  that any amounts  remaining in the  Contingency  Reserve
         shall be distributed to the Company's stockholders.

C.       REAL ESTATE ASSETS

         Real estate assets have been  recorded at the estimated net  realizable
         values in liquidation.  No independent appraisals have been obtained on
         these assets.  The estimated net realizable values have been determined
         based on contract negotiations,  internal analysis, inquiries or offers
         from  prospective  purchasers,  inquiries of market  professionals  and
         expected  selling costs and operating  results  through the anticipated
         disposal date.

D.       ASSET SALES

         For  the  quarter   ended  March  31,   1998,   the  Company  sold  the
         Lawrenceville  Industrial  Campus and land  assets for net  proceeds of
         approximately  $4,606.  On May  7,  1998  the  Company  entered  into a
         contract with an unrelated  third party for the sale of the Cross Creek
         Business  Center for $12,500  which is  expected  to net  approximately
         $12,425 after closing  costs.  The buyer posted a $250 deposit of which
         $50 is  non-refundable.  The  sale  is  subject  to  customary  closing
         conditions   including  a  thirty-day  due  diligence  period  with  an
         additional thirty days to close thereafter.

E.       LIQUIDATING DISTRIBUTION PAYABLE

         On  March  27,  1998  the  Board  of  Directors   declared  the  fourth
         liquidating dividend of $.60 per share to Common shareholders of record
         as of April 9, 1998. This dividend was paid on April 21, 1998.

 F.      MORTGAGE NOTE PAYABLE

         The  mortgage  note  payable  represents  a 9.75% per annum  fixed rate
         non-recourse  first  mortgage  note  maturing on  September 1, 1998 and
         collateralized by the Cross Creek Business Center.

G.       MANAGEMENT AGREEMENT

         The Management Agreement with Wexford was indefinitely  extended during
         1998 on a month to month basis subject to  cancellation by either party
         for any reason upon 30 days prior written  notice.  The  Management Fee
         for 1998 was $10 for the month of January and $22 per month thereafter.
 
H.       ACCRUED MANAGEMENT DISTRIBUTION

         Pursuant to the approved Plan of Liquidation,  management distributions
         are  payable in the amount  equal to ten  percent of all  distributions
         made to  stockholders  of the  Company  in  excess  of $8.50  per share
         (inclusive  of the $2.50 per share  dividend  paid on April 14,  1997).
         Including the distribution  paid on April 21, 1998 total  distributions
         paid to date are $8.30 per share. Management distributions of $588 were
         accrued as of March 31, 1998.
<PAGE>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following  section  includes a discussion and analysis of the results of the
Company for the quarter ended March 31, 1998.

Plan of Liquidation

          On April 24, 1997, the Board of Directors  approved a plan of complete
liquidation  and dissolution of the Company (the "Plan") which was approved by a
majority vote of the shareholders on September 26, 1997. The key features of the
Plan are:  (1) the  cessation of all  business  activities,  other than those in
furtherance  of the Plan;  (2) the sale or  disposition  of all of the Company's
assets; (3) the satisfaction of all outstanding liabilities;  (4) the payment of
liquidating  distributions to shareholders in complete  redemption of the Common
Stock; and (5) the  authorization of the filing of Articles of Dissolution.  The
amount and timing of any liquidating distributions will depend upon a variety of
factors including,  but not limited to, the actual proceeds from the sale of any
of the  Company's  assets,  the  ultimate  settlement  amounts of the  Company's
liabilities and  obligations,  actual costs incurred in connection with carrying
out the Plan,  including  management  fees and  administrative  costs during the
liquidation period, and the timing of the liquidation and dissolution.  Accruals
totaling  approximately $465,000 have been recorded as of March 31, 1998 for the
estimated  future costs of liquidating  the Company which  include,  but are not
limited to, costs of disposing of the Company's remaining assets and general and
administrative  costs  through the  estimated  conclusion  of  liquidation.  The
Company  believes  that in addition to the costs and  expenses  associated  with
facilitating the Plan, it is necessary to set aside a Contingency Reserve in the
amount of  approximately  $1,000,000.  No  liability  has been  accrued for such
contingencies.  Following the payment,  satisfaction or other resolution of such
contingencies,  the Plan provides that any amounts  remaining in the Contingency
Reserve shall be distributed to the Company's stockholders.

Results of Operations - General

          The Company has disposed of  substantially  all of its portfolio.  The
future  performance  of the  Company's  portfolio  of assets  will be subject to
prevailing  economic  conditions  and to financial,  business and other factors,
including the future  performance of the real estate market, the availability of
financing to prospective asset purchasers,  the timing of the liquidation of the
Company and to other factors  beyond the Company's  control.  For these reasons,
the  results  of the  Company's  operations  from  period to  period  may not be
comparable.

          During  the  quarter  ended  March  31,  1998,  the  Company  sold the
Lawrenceville   Industrial   Campus  and  land   assets  for  net   proceeds  of
approximately  $4,606,000.  On May 7, 1998 the Company  entered  into a contract
with an unrelated  third party for the sale of the Cross Creek  Business  Center
for $12,500,000 which is expected to net approximately $12,425,000 after closing
costs. The buyer posted a $250,000  deposit of which $50,000 is  non-refundable.
The sale is subject to customary closing  conditions  including a thirty-day due
diligence period with an additional thirty days to close thereafter.
<PAGE>
Liquidity and Capital Resources

         The  Company's  primary  objectives  are to liquidate its assets in the
shortest time period possible while realizing the maximum values for such assets
and reduction of operating costs. Although the Company considers its assumptions
and estimates as to the values and timing of such liquidations to be reasonable,
the period of time to liquidate the assets and  distribute  the proceeds of such
assets  is  subject  to   significant   business,   economic   and   competitive
uncertainties and contingencies, many of which are beyond the Company's control.

         Total cash at March 31, 1998 was approximately $6,773,000 a substantial
portion of which was  designated  for the $.60 per share  dividend paid on April
21, 1998.
<PAGE>


                           PART II - OTHER INFORMATION


Item 6.             Exhibits and Reports on Form 8-K:

                    (a)   Exhibits:  None


                    (b)   Reports on Form 8-K:  None



<PAGE>


                                   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.

                                     Resurgence Properties Inc.



Date: May _____, 1998                By: /s/ Joseph M. Jacobs
                                         ---------------------
                                         Joseph M. Jacobs
                                         Chief Executive Officer and President
                                         (Duly Authorized Officer)




Date: May _____, 1998                By: /s/ Jay L. Maymudes
                                         --------------------
                                         Jay L. Maymudes
                                         Chief Financial Officer, Vice President
                                         and Secretary (Principal Financial and
                                         Accounting Officer and Duly Authorized
                                         Officer)