SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Schedule 13G

Under the Securities Exchange Act of 1934
(Amendment No. 1)*

Coltec Industries			
(Name of issuer)

Common Stock				
(Title of Class of Securities)

196879100
(CUSIP Number)

*The remainder of this cover page shall be filled out for a 
reporting person's initial filing on this form with respect 
to the subject class of securities, and for any subsequent 
amendment containing information which would alter the 
disclosures provided in a prior cover page.

The information required in the remainder of this cover 
page shall not be deemed to be "filed" for the purpose of 
Section 18 of the Securities Exchange Act of 1934 
("Act") or otherwise subject to the liabilities of that 
section of the Act but shall be subject to all other 
provisions of the Act (however, see the Notes).



Page 1 of 6 Pages


CUSIP No.  196879100		13G		  Page 2 of 6 Pages

1	NAME OF REPORTING PERSON
	S.S. OR I.R.S. IDENTIFICATION NO.  OF ABOVE PERSON
	MacKay-Shields Financial Corporation (MSFC) 13-2631681; 
	MSFC is also filing on behalf of its parent, New York Life 
	Insurance Company (NYLIC)

2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A 
	GROUP*
		Not Applicable			(a)0
						(b)0

3	SEC USE ONLY

4	CITIZENSHIP OR PLACE OF ORGANIZATION
	Delaware (United States)

	
	         		5	SOLE VOTING POWER
NUMBER OF			Not Applicable as to MSFC; 
SHARES			270,000 Not Applicable to NYLIC; 
BENEFICIALLY			230,000 Applicable as to NYLIC

OWNED BY		6	SHARED VOTING POWER
EACH				1,343,500 as to MSFC
REPORTING		      	270,000 as to NYLIC
PERSON				
WITH		      	7	SOLE DISPOSITIVE POWER
			     	Not Applicable as to MSFC;	
				270,000 Not Applicable to NYLIC;	
				230,000 Applicable as to NYLIC

	      		8          SHARED DISPOSITIVE POWER
				1,343,500 as to MSFC
				270,000 as to NYLIC
		
9 	AGGREGATE AMOUNT BENEFICIALLY OWNED BY 
	EACH 	REPORTING PERSON	
			Total: 1,843,500
			1,343,500 as to MSFC
		  	500,000 as to NYLIC     

10	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) 
	EXCLUDES CERTAIN SHARES*
			Not Applicable
	
11	PERCENT OF CLASS REPRESENTED BY AMOUNT IN 
	ROW 9
	2.8%

12	TYPE OF REPORTING PERSON*
		IA
		New York Life is an IC

SCHEDULE 13G
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Under the Securities Exchange Act of 1934

ITEM 1 (a)	Name of Issuer:
		Coltec Industries				
			
ITEM 1 (b)	Address of Issuer's Principal Executive Offices:
		3 Coliseum Centre
		2550 West Tyvola Rd.
		Charlotte, NC  28217	
				
ITEM 2 (a)	Name of Person Filing:
		MacKay-Shields Financial Corporation			
		
ITEM 2  (b)	Address of Principal Business Office:
		9 West 57th Street					
		New York, NY 10019					
		
ITEM 2 (c)	Citizenship:
		United States						
		
ITEM 2 (d)	Title of Class of Securities:
		Common Stock						
		
ITEM 2 (e)	CUSIP Number:
		196879100	
					
ITEM 3.     If this statement is filed pursuant to Rules 13d-1 (b), or 	
		13d-2(b), check whether the person filing is a: 

(a)    [  ]	Broker or Dealer registered under Section 15 of the Act
(b)    [  ]	Bank as defined in section 3(a)(6) of the Act
(c)    [  ]	Insurance Company as defined in section 3(a)(19) of the 
Act
(d)    [  ]	Investment Company registered under section 8 of the 
Investment
	Company Act
(e)    [X]	Investment adviser registered under Section 203 of the 
Investment Advisers Act of 1940
(f)    [  ]	Employee Benefit Plan, Pension Fund which is subject to 
the provisions of the Employee Retirement Income 
Security Act of 1974 or Endowment Fund; see section 
240.13d-1 (b)(1)(ii)(F)




Page 3  of 6  Pages





SCHEDULE 13G cont.

(g)    [  ]	Parent Holding Company, in accordance with section 
	240.13d-l(b)(ii)(G) (Note: See Item 7)

(h)    [  ]	Group, in accordance with section 240.13d-1 (b)(1)(ii)(H)

ITEM 4.       Ownership.

	If the percent of the class owned, as of December 31 of the 
	year covered by the statement, or as of the last day of any 
	month described in Rule 13d-l(b)(2), if applicable, exceeds 
	five percent, provide the following information as of that 
	date and identify those shares which there is a right to 
	acquire.

	(a)	Amount Beneficially Owned:
									
	(b)	Percent of Class:
			
	(c)	Number of shares as to which such person has:

		(i)	sole power to vote or to direct the vote
				
		(ii)	shared power to vote or to direct the vote

		(iii) 	sole power to dispose or to direct the disposition 	
			of
			
		(iv)	shared power to dispose or to direct the 		
			disposition of

		
ITEM 5. Ownership of Five Percent or Less of a Class.

	If this statement is being filed to report the fact that as 	
	of the date hereof the reporting person has ceased to be the 
	beneficial owner of more than five percent of the class of 
	securities, check the following [ X ].

		Not Applicable					



	
Page  4 of  6 Pages








SCHEDULE 13G cont.

					
ITEM 6.	Ownership of More than Five Percent on Behalf of 	
	Another Person.

	If any other person is known to have the right to receive or 
	the power to direct the receipt of dividends from, or the 
	proceeds from the sale of, such securities, a statement to that 
	effect should be included in response to this item and, if such 
	interest relates to more than five percent of the class, such 
	person should be identified.  A listing of the shareholders of 
	an investment company registered under the Investment 
	Company Act of 1940 or the beneficiaries of employee 
	benefit plan, pension fund or endowment fund is not 
	required.

	Clients of the filing investment manager and NYLIC have 
	the right to receive and the ultimate power to direct the 
	receipt of dividends from, or the proceeds of the sale of, such 
	securities.  No interest of any such clients relates to more 
	than 5% of the class.  NYLIC has the power to direct 
	dividends or proceeds from its trades.

ITEM 7.	Identification and Classification of the Subsidiary Which 	
	Acquired the Security Being Reported on By the Parent 	
	Holding Company.
		
	If a parent holding company has filed this Schedule
	pursuant to Rule 13d-1(b)(ii)(G), so indicate 
	under Item 3 (g) and attach an exhibit stating the identity 
	and the Item 3 classification of the relevant subsidiary.
	If a parent holding company has filed this schedule
	pursuant to Rule 13d-1(c), attach an exhibit stating
	the identification of the relevant subsidiary.

	Not Applicable						
				
ITEM 8.	 Identification and Classification of Members of the Group.

	If a group has filed this schedule pursuant to Rule
	13d-1(b)(ii)(H), so indicate under Item 
	3(h) and attach an exhibit stating the identity and Item 3 
	classification of each member of the group.  If a group
	has filed this schedule pursuant to Rule 13d-1(c),
	attach an exhibit stating the identity of each member
	of the group.

		Not Applicable.					
					
Page 5 of 6 Pages

SCHEDULE 13G cont.

ITEM 9.	Notice of Dissolution of Group

	Notice of dissolution of a group may be furnished as an 
	exhibit stating the date of the dissolution and that all further 
	filings with respect to transactions in the security reported on 
	will be filed, if required, by members of the group, in their 
	individual capacity.  See Item 5.

		Not Applicable					
				
ITEM 10.	Certification

	By signing below I certify that, to the best of my knowledge 	
	and belief, the securities referred to above were acquired in 
	the ordinary course of business and were not acquired for the 
	purpose of and do not have the effect of changing or 
	influencing the control of the issuer of such securities and 
	were not acquired in connection with or as a participant in 
	any transaction having such purpose or effect.

SIGNATURE

	After reasonable inquiry and to the best of my knowledge 
and belief, I certify that the information set forth in this
statement is true, complete and correct.

Date:		February 13, 1998			

Signature:	Jeffry B. Platt					

Name/Title:	Jeffry B. Platt, General Counsel		

AUTHORIZED AS TO NEW YORK LIFE INSURANCE COMPANY 
HOLDINGS:

New York Life Insurance Company

Date: February 13, 1998

Signature:	James Agostisi	
Name/Title:	Director/Portfolio Manager	

	

Page 6 of 6  Pages