  We define a new modular functor based on Kac-Wakimoto admissible
representations and the corresponding D-module on the moduli space of rank 2
vector bundles with parabolic structure. A new fusion functor arises which is
related to representation theory of the pair "osp(1|2),sl(2)" in the same way
as the fusion functor for the Virasoro algebra is related to representation
theory of the pair "sl(2),sl(2)"
