Southmark Corp. reported a second-quarter loss of...

Southmark Corp. reported a second-quarter loss of $92.5 million and disclosed plans to bring in Shearson Lehman Hutton to help the company formulate a new business plan, recapitalize and reduce its debt burden. The move will reduce the role of Drexel Burnham Lambert as Southmark’s financial adviser. Southmark also said it plans to withdraw from the gaming industry and to liquidate its $200-million “junk bond” portfolio in favor of more conservative investments.