REORGANIZATION PLAN OF THE GRAND UNION COMPANY IS CONFIRMED BY U.S.
BANKRUPTCY COURT TODAY
WAYNE, N.J.--June 1, 1995-- At a hearing held today
in U.S. Bankruptcy Court in Wilmington, Delaware, Judge Peter J. Walsh
announced he will sign an order confirming The Grand Union
Company's Chapter 11 Plan of Reorganization. The order will be delivered to the
Court today.
Grand Union, which operates 231 retail food stores in six Northeastern
states, filed for Chapter 11 protection on January 25, 1995. The
company said it expects the effective date of its reorganization plan
to be the week of June 12.
Joseph J. McCaig, president and chief executive officer of Grand
Union, said "We are gratified that our bankruptcy proceedings are now
behind us. While this has been one of the most difficult periods in
our 123-year history, we will now be well positioned as financially
sound company to aggressively move into the future and quickly resume
our traditional growth pattern."
McCaig said "We are especially thankful to all our 17,000 associates,
3 million customers and thousands of creditors who have worked with us
during this period to assure the future success of our company."
CONTACT: Grand Union Company | Don Vaillancourt, 201/890-6100
EMPLOYEE SOLUTIONS, INC. ANNOUNCES FURTHER DEVELOPMENTS IN ACQUISITION OF
HAZAR ASSETS
PHOENIX, Arizona--May 31, 1995-- EMPLOYEE SOLUTIONS, INC.
("ESI") (Nasdaq: ESOL) announced today that it has received U.S.
bankruptcy court approval of its proposed acquisition of the assets of
HAZAR, INC. ("Hazar"), subject to completion of a
definitive purchase agreement consistent with the court-approved acquisition terms.
Hazar is a staff leasing company currently operating under the protection of
the federal bankruptcy laws, with leased employees in California, New
York, New Jersey, Massachusetts, New Hampshire, Rhode Island and
Illinois. Hazar's current estimated annual payroll is approximately
$150 million, and it leases approximately 6,000 employees.
The Company previously entered into a nonbinding letter of intent
regarding the acquisition transaction. The nonbinding letter of intent
(as revised in connection with the bankruptcy court approval process)
contemplates a purchase price equal to the lesser of $7,000,000 or
five times the earnings (before depreciation, amortization, interest
and taxes) derived from the acquired assets for the 12-month period
following closing, reduced by certain assumed liabilities. The
purchase price is payable on an ongoing basis from the operating cash
flow derived from the acquired assets. A final payment is due 18
months after closing if the purchase price exceeds the sum of the cash
flow payments and assumed liabilities.
Completion of the proposed acquisition is subject to numerous
conditions, including the performance and satisfactory completion of
the Company's due diligence, satisfaction of customary closing
conditions and receipt of final approvals as required in connection
with Hazar's current bankruptcy proceedings. There can be no assurance
that the transaction will be concluded.
As previously announced, the Company has been providing workers'
compensation coverage for Hazar since May 1, 1995. The estimated
annual workers' compensation premium of approximately $6,000,000 is
being coordinated through the Company's captive insurance subsidiary,
CAMELBACK INSURANCE, LTD., and placed with RELIANCE NATIONAL INDEMNITY
COMPANY. If an acquisition transaction is not concluded, it is
possible that some or all of the related workers compensation
coverages relating to Hazar will be discontinued.
EMPLOYEE SOLUTIONS, INC. is a staff leasing company, providing
solutions to small and mid-sized companies for lower cost and more
comprehensive benefit packages, payroll administration, workers'
compensation and flexible health insurance programs tailored to the
needs of the client.
/CONTACT: Todd Belfer of Employee Solutions, Inc., 602-437-8308/
DUFRESNOY AND ORMICO ANNOUNCE THAT THEIR SUBSIDIARY, DOLOBEC INC., HAS
FILED, ON MAY 30, 1995, A NOTICE OF INTENTION PURSUANT TO THE
BANKRUPTCY AND INSOLVENCY ACT
QUEBEC, Canada--MAY 31, 1995--DUFRESNOY IND. MIN.
(ME:DUF) ORMICO EXPLORATION (ME:OMX) Dufresnoy Industrial Minerals
inc. ("Dufresnoy") and Ormico Exploration ltee ("Ormico") announce
that their subsidiary, Dolobec Inc., has
filed, on May 30, 1995, a notice of intention pursuant to the Bankruptcy and Insolvency
Act. Such notice will enable Dolobec to negotiate a proposal of settlement
with all its creditors. Dolobec globally owes over $600,000 to its
unsecured creditors.
Dolobec has been experiencing financial difficulties since December
1994, further to the decision of a potential customer not to comply
with a firm offer, which would have allowed Dolobec to double its
production.
Dolobec's operations will continue normally during the negotiation
period and the preparation of the proposition to be presented to the
creditors.
Dufresnoy and Ormico are both guarantors for Dolobec's credit line of
$150,000 with the National Bank of Canada. Dufresnoy also guarantees
Dolobec's long term debt with the National Bank of Canada, for a
maximum amount of $500,000. Dolobec represents about 34 p.cent of
Dufresnoy's assets and 27 p.cent or so of Ormico's assets.
The Board of Directors of Dolobec has chosen Raymond, Chabot Inc. to
act as licensed trustee for Dolobec.
CONTACT: Guy Bourassa
President of Dufresnoy
(819) 647-6032
or
Claude St-Jacques
President of Ormico
(418) 692-2678
CHALLENGER INTERNATIONAL, LTD. SIGNS LETTER OF INTENT TO SELL SAVAGE
ARMS UNIT; SECURES FINANCING TO COMPLETE ACQUISITION OF INTELECT,
INC.
HAMILTON, Bermuda, June 1, 1995 - HREF="chap11.challenger.html">Challenger International, Ltd. (Nasdaq: CSTIF; TSE:
CTT) announced that it has signed a Letter of Intent to sell its firearms and
related businesses, Savage Arms, Lakefield Arms and Passive Bullet Traps, to
Mossberg Corporation of North Haven, Connecticut for $35 million in
cash plus additional consideration to be determined at closing.
In connection with the sale transaction, Mossberg Corporation is
also providing Challenger with $9 million to fund Challenger's
remaining obligations to complete its acquisition of 100% of
Intelect, Inc., based in Dallas, Texas. The $9 million will be
repaid out of the proceeds of the sale of Savage at closing or over
a two year period in the event the sale does not close. This
financing arrangement allows Challenger to avoid the fees, warrants
or other such costs and contingencies customarily associated with
placement of external long-term subordinated debt.
With the sale of Savage, Challenger will be exiting the business
of firearms manufacturing and marketing with a gain of approximately
$2.00 per share and an increase in shareholders' equity to
approximately $3.50 per share. Present management of Challenger
took over direction of the Company in 1988 with a complete
restructuring program that resulted in the acquisition of Savage in
November 1989 as a purchase of assets out of bankruptcy. Savage was
rejuvenated with new capital and product and marketing innovations
to produce sustained revenue growth and profitability. For 1994,
Savage net sales reached $25,871,000 and income from operations had
risen to $5,073,000 under the leadership of Savage CEO Ron Coburn,
compared to sales to $13,285,000 in 1990 with an operating loss of
$2,523,000. Mr. Coburn is designated to be appointed President and
Chief Operating Officer of the combined Savage and Mossberg
operations.
Challenger's acquisition of Intelect, Inc. in Dallas, Texas
provides Challenger with a new platform of proven technology and
established products and market position for expansion and growth in
the burgeoning telecommunication industry internationally.
Intelect, Inc. is a 30- year-old, privately-held company that
designs, manufactures and installs voice and data switching and
fiber optic digital communications systems for applications in air
traffic control, air defense and business communications. Intelect
is a pioneer in markets for digital switches for special services.
Its products are well established internationally with installations
in more than 30 countries. Intelect's 1994 revenues were at
approximately $15 million.
/CONTACT: Challenger International public relations, in Bermuda,
809-295-8639/