<ARTICLE>                                           7
<LEGEND>
     THIS SCHEDULE  CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM FORM
10-Q FOR THE  QUARTERLY  PERIOD  ENDED  MARCH 31, 1997 AND IS  QUALIFIED  IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<CIK>                         0000225648
<NAME>                        DANIELSON HOLDING CORPORATION
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   MAR-31-1997
<EXCHANGE-RATE>                                1
<DEBT-HELD-FOR-SALE>                           140,773
<DEBT-CARRYING-VALUE>                          0
<DEBT-MARKET-VALUE>                            0
<EQUITIES>                                     622
<MORTGAGE>                                     0
<REAL-ESTATE>                                  0
<TOTAL-INVEST>                                 145,332
<CASH>                                         1,967
<RECOVER-REINSURE>                             27,963<F1>
<DEFERRED-ACQUISITION>                         1,395
<TOTAL-ASSETS>                                 192,320
<POLICY-LOSSES>                                116,652
<UNEARNED-PREMIUMS>                            10,505
<POLICY-OTHER>                                 0
<POLICY-HOLDER-FUNDS>                          389
<NOTES-PAYABLE>                                0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       1,538
<OTHER-SE>                                     55,407<F2>
<TOTAL-LIABILITY-AND-EQUITY>                   192,320
<PREMIUMS>                                     10,816
<INVESTMENT-INCOME>                            2,527
<INVESTMENT-GAINS>                             2,206
<OTHER-INCOME>                                 149
<BENEFITS>                                     7,736
<UNDERWRITING-AMORTIZATION>                    2,024
<UNDERWRITING-OTHER>                           3,488
<INCOME-PRETAX>                                2,443
<INCOME-TAX>                                   6
<INCOME-CONTINUING>                            2,437
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   2,437
<EPS-PRIMARY>                                  0.16<F3>
<EPS-DILUTED>                                  0.15<F4>
<RESERVE-OPEN>                                 97,105
<PROVISION-CURRENT>                            7,736
<PROVISION-PRIOR>                              0
<PAYMENTS-CURRENT>                             1,578
<PAYMENTS-PRIOR>                               10,420
<RESERVE-CLOSE>                                92,843
<CUMULATIVE-DEFICIENCY>                        (10,120)
<FN>
     <F1> INCLUDED IN THIS CAPTION ARE REINSURANCE RECOVERABLES ON UNPAID LOSSES
OF 23,809 AND REINSURANCE RECOVERABLES ON PAID LOSSES OF 4,154.
     <F2> INCLUDED IN STOCKHOLDERS' EQUITY-OTHER IS TREASURY STOCK OF 66.
     <F3>  REPRESENTS  EARNINGS PER  SHARE-BASIC  
     <F4> REPRESENTS EARNINGS PER SHARE-DILUTED
</FN>