U.S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-QSB

[X]  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934.

     For the quarterly period ended March 31, 1999

[ ]  Transition  report  pursuant  to Section 13 or 15 (d) of the  Securities
     Exchange Act of 1934.

                       For the transition period from to

                         Commission File Number: 2-98083-A

                              CATHEL PARTNERS, LTD.
             (Exact name of registrant as specified in its charter)

Delaware                                         59-2571253
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                   Identification No.)


                        68 Schraalenberg Road
                        PO Box 233
                        Harrington Park, NJ  07640
                    (Address of principal executive offices)

                              (201) 784-5190
              (Registrant's telephone number, including area code)


Former name, former address and former fiscal year, if changed since last report

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 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

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date: 469,203 shares of common stock
outstanding.

<PAGE>

                                     PART I
                              FINANCIAL INFORMATION

Item 1. Financial Statements

     The  condensed  financial  statements  for the period  ended March 31, 1999
included  herein have been prepared by Cathel  Partners,  Ltd.  (the  "Company")
without  audit,  pursuant to the rules and  regulations  of the  Securities  and
Exchange  Commission  (the  "Commission").  In the  opinion of  management,  the
statements  include all  adjustments  necessary to present  fairly the financial
position of the Company as of March 31, 1999,  and the results of operations and
cash flows for the three months period ended March 31, 1999 and 1998.

     The  Company's  results  of  operations  during  the  three  months  of the
Company's  fiscal  year are not  necessarily  indicative  of the  results  to be
expected for the full fiscal year.

     The  financial  statements  included  in  this  report  should  be  read in
conjunction  with the  financial  statements  and notes thereto in the Company's
Annual  Report on Form 10-K for the fiscal  years  ended  December  31, 1998 and
1997.


<PAGE>
<TABLE>
<CAPTION>

                              CATHEL PARTNERS, LTD.
                      (FORMERLY B. C. COMMUNICATIONS, INC.)
                     (A heating system development company)
                                  BALANCE SHEET



ASSETS


                                    March 31,
                                        1999
                                   (Unaudited)
Current Assets:
<S>                                     <C>
   Cash                                 $ 327

 Total Assets                           $ 327



LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


Current  Liabilities:
   Accounts Payable                   $ 7,000

Stockholders Equity:
   Common Stock  $.00001 par value
   500,000,000  shares authorized
   469,203  shares issued and outstanding.
Additional paid-in capital          1,285,279
Retained (Deficit)                 (1,291,957)

 Total Stockholders' Equity (Deficit)  (6,673)

 Total Liabilities
 and Stockholders' Equity               $ 327


</TABLE>


The accompanying Notes are an integral part of these Financial Statements.

<PAGE>
<TABLE>
<CAPTION>

                              CATHEL PARTNERS, LTD.
                      (FORMERLY B. C. COMMUNICATIONS, INC.)
                     (A heating system development company)
                             STATEMENT OF OPERATIONS


                             THREE MONTHS ENDED
                          MARCH 31, 1999 AND 1998


                                                    1998              1997
                                                 (Unaudited)      (Unaudited)

<S>                                                  <C>            <C>
 Revenue                                             $ -0-          $ -0-

 Operating Expenses                                    18             18

 Net (Loss)                                          $(18)          $(18)

 Earnings per share                                 $ .00          $ .00

 Weight Average Shares Outstanding                469,203        469,203




</TABLE>

The accompanying Notes are an integral part of these Financial Statements.



<PAGE>
<TABLE>
<CAPTION>

                              CATHEL PARTNERS, LTD.
                      (FORMERLY B.C. COMMUNICATIONS, INC.)
                     (A heating system development company)
                             STATEMENT OF CASH FLOWS


                               FOR THE THREE MONTHS
                        ENDED MARCH 31, 1999 AND 1998


                                                       1997             1996
                                                 (Unaudited)      (Unaudited)

Cash Flow from Operations:
<S>                                                   <C>             <C>
Net (Loss)                                            $ (18)          $ (54)

 Net Cash Flow from Operations                          (18)            (54)

 Cash - Beginning                                       345             417

 Cash - Ending                                        $ 327           $ 399



</TABLE>

The accompanying Notes are an integral part of these Financial Statements.

<PAGE>
                              CATHEL PARTNERS, LTD.
                      (FORMERLY B. C. COMMUNICATIONS, INC.)
                     (A heating system development company)
                          NOTES TO FINANCIAL STATEMENTS
                                  MARCH 31, 1998



Note  1  -  Summary of Significant Accounting Policies

     Organization   of  Business  -  Cathel   Partners,   Ltd.   (formerly  B.C.
Communication, Inc.)(the "Company") was incorporated in the state of Delaware on
June  7,  1985.  The  Company  originally  intended  to  develop,  produce,  and
distribute  programs  of a talk and  interview  format  for  commercial  and pay
television.  The Company  exhausted its funds on the incomplete  production of a
show and decided to seek other business  opportunities  which would offer growth
and development.

     On  February  14,  1987,  the  Company  acquired  73.75  percent of Kinetic
Systems,  Inc.,  a  Delaware  corporation,  which was trying to develop a closed
chamber,  forced  hot air,  liquid  heating  system for use in  residential  and
commercial  buildings.  On March 31,  1988,  pursuant  to a  February  14,  1987
agreement,  the Company received the remaining 26.25 percent of Kinetic Systems,
Inc., in exchange for 78,750,000  shares of the Companies common stock.  Kinetic
Systems, Inc., became a wholly owned subsidiary of the Company.

     On  January  28,  1993,  the  Company  sold 100  percent  of the issued and
outstanding  shares of common stock of Kinetic  Systems,  Inc., to the Barrister
Group, Ltd., for $100,000. The Company has been inactive since 1993.

     Earnings  per  Share - The net  income  (loss)  per  share  is based on the
weighted average number of share outstanding during the period.

     Income  Taxes - Deferred  income  taxes are  recorded  to  reflect  the tax
consequences on future years of differences  between the tax bases of assets and
liabilities  and their  financial  reporting  amounts at each year end.  The tax
benefit to  operating  losses and tax credit  carryforwards  are  recognized  if
management believes,  based on available evidence,  that is more likely than not
that they will be realized.  Investment  tax credits are accounted for under the
flow-through method.

     Anticipated  Effect of Recently Issued  Statements of Financial  Accounting
Standards - The Company does not expect the effect of recently issued  Financial
Accounting  Standards,  when adopted, to have a material impact on its financial
statements and results of operations.



<PAGE>

                              CATHEL PARTNERS, LTD.
                      (FORMERLY B. C. COMMUNICATIONS, INC.)
                     (A heating system development company)
                          NOTES TO FINANCIAL STATEMENTS
                               MARCH 31, 1999



Note  2  -  Income Taxes

     The Company has a net  operating  loss  carryforward  of  $1,125,134  which
expires from 2001 through 2013.


Note  3  -  Stockholders' Equity

     In September, 1985, the Company sold 25,000,000 units at $.01 per unit in a
public  offering,  each unit  consisting  of one  share of common  stock and two
redeemable  warrants.  The redeemable  warrants were  exerciseable  at $.015 per
share of common  stock.  49,423,000  warrants  were  exercised  resulting in net
proceeds to the Company of $741,344.

     On February 14, 1987, the Company  exchanged  221,250,000  shares of common
stock in exchange for 73.75 percent of the common stock of Kinetic Systems, Inc.

     On April 14, 1988,  the Company's  Board of Directors  amended an agreement
with Mr. Eugene Perkins,  inventor of Kinetic Systems, Inc. heating systems, and
in lieu of cash, issued to Mr. Perkins 20,000,000 shares of restricted shares of
common stock valued at $350,000 for additional  research and  development of the
heating system.

     On March 31, 1988,  pursuant to a February 14, 1987 agreement,  the Company
issued  78,750,000  shares of common stock in exchange for the  remaining  26.25
percent of Kinetic Systems, Inc.

     In 1995,  the Company  recorded a 1,000 for 1 reverse stock split  reducing
the number of shares outstanding to 469,203.


Note  4  -  Going Concern

     The Company has experienced  operating loss of $1,291,957  since inception.
The Company  needs to acquire a company or raise capital if it is to continue as
a going concern.



<PAGE>



Item 2. Management's Discussion and Analysis or Plan of Operation

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                for the Three months ended March 31, 1999 and 1998
                ------------------------------------------------

Results of Operations

     For the three  months  ended March 31, 1999 as compared to the three months
ended March 31, 1998.

     The company  has  remained  inoperative.  Revenue  and  earnings  per share
remained  $-0- for both the three  months  ended  March 31,  1999 and 1998.  The
activities of the Company  during the three months ended March 31, 1998 and 1999
consisted of preparing and filing  corporate  income tax returns and filings for
the Securities and Exchange Commission.

     Liquidity And Capital Resources for the three months ended March 31, 1999.

     As of March 31, 1999,  the  Company's net cash flow from  operations  was a
loss of $18  which  was  consistent  with  the  Company's  net  cash  flow  from
operations for the three months ended March 31, 1998.

     The Company has  experienced  an  operating  loss of  $1,291,957  since its
inception,  and needs to acquire a company or raise capital if it is to continue
as a going concern

<PAGE>
                                     PART II
                                OTHER INFORMATION

Item 1. Legal Proceedings.

     No legal proceedings were brought, are pending or are threatened during the
quarter.


Item 2. Changes in Securities

     None

Item 3. Defaults upon Senior Securities

     None.

Item 4. Submission of Matters to a Vote of Security-Holders

     None.

Item 5. Other information

 None.

Item 6. Exhibits and Reports on Form 8-K

 No 8-K has been filed.



                                   SIGNATURES



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




                         Cathel Partners, Ltd.
                                  (Registrant)

                                  By: /s/ ROBERT SCHUCK
                                      ------------------
                                       ROBERT SCHUCK
                                       PRESIDENT


 Dated: December 6, 1999