THE UNOFFICIAL COMMITTEE OF TRANS WORLD AIRLINES, INC. 8SENIOR
SECURED NOTES, DUE 2000 REACHES AGREEMENT ON TERMS OF THE
PREPACKAGED PLAN
NEW YORK, New York--June 15, 1995--The Unofficial Committee of
Trans World Airlines, Inc. ("TWA") 8% Senior
Secured Notes, Due 2000
(the "8% Note Committee"), which represents a substantial portion of
the outstanding notes, has reached agreement with TWA on the terms
of TWA's restructuring proposal dated May 12, 1995 which was
contained in TWA'S exchange offer and solicitation materials which
holders have received in recent weeks. After significant
negotiation and analysis of the proposal options, the 8% Note
Committee has determined that the prepackaged Chapter 11 plan of
reorganization is the most efficient and effective method for
accomplishing the restructuring. The 8% Note Committee believes
that the restructuring which is to be accomplished through the
prepackaged Chapter 11 plan is fair and reasonable and is the best
alternative available to the 8% noteholders.
The 8% Note Committee urges all 8% noteholders to mark the boxes
on the light green single page ballot as follows:
"Accepts" the prepackaged plan for the reorganization of Trans World
Air ...
and
"Consents" to the amendment to the pledge and security agreement ...
The light green single page ballot contains the following headings:
"For use by beneficial owners of Class 3 claims (8% notes),"
"United States Bankruptcy Court" and
"Chapter 11 ballot for accepting or rejecting prepackaged plan
of ..."
and sign and return the ballot pursuant to the instructions enclosed
with the solicitation materials that were circulated by TWA.
The 8% Note Committee believes that it is in the best interests
of the 8% noteholders to support the prepackaged plan option and
recommends that 8% noteholders should not tender their 8% notes and
should not sign or return the blue multi-page "consent and letter of
transmittal ..." materials.
The 8% Note Committee believes that the prepackaged plan
proposal provides the best alternative available to 8% noteholders
and if the proposal is not approved and confirmed then any recovery
to 8% noteholders could be delayed significantly. For further
information or questions regarding missing solicitation materials or
instructions on voting procedures, call TWA's information agent,
D.F. King & Co. at 800-207-3156.
/CONTACT: Vincent Intrieri, Arthur Andersen, financial advisor to
the 8% Note Committee, 312-507-8621/
EAGLE-PICHER INDUSTRIES ANNOUNCES SECOND QUARTER RESULTS
CINCINNATI, Oh--June 15--Eagle-Picher
Industries (OTC Bulletin Board: EPIH.U) today announced that for the second quarter
ended May 31, 1995, sales were $225.4 million compared with $197.0
million for the second quarter of 1994. Operating income increased
to $19.1 million from $17.5 million and net income was $16.8 million
or $1.52 per share compared with $14.7 million or $1.33 per share
for the second quarter of 1994.
Thomas E. Petry, Eagle-Picher Chairman, said that "although
economic activity generally remained at a high level during the
second quarter, there are indications that certain segments of the
business may not be as strong during the second half of 1995 as they
were in the first half. This is likely to be particularly true for
some operations serving the automotive industry. It is also
anticipated that later in the year and entering fiscal 1996,
operations which manufacture earth moving equipment for the
worldwide construction market will see a decline. In the Automotive
Group, which represented 53% of the Company's sales for the first
half of 1995, the Wolverine Gasket Division experienced an excellent
quarter. Wolverine is a leading supplier of gasket and brake
materials to the worldwide automotive market; an expansion of the
Division's Blacksburg, Virginia facility is underway because of the
Division's continued market penetration. Hillsdale Tool Division
also enjoyed an excellent quarter. This Division benefited from its
strong position as a supplier of components to the light truck, van,
and sport utility vehicle segment of the market. The Plastics
Division experienced improved results for the second quarter. High
inventory levels of the General Motors All-Purpose Van, however,
will adversely affect the Division's operations during the second
half of the year. European operations enjoyed healthy demand for
their products and increased their market share during the second
quarter of 1995. Delayed start-ups of new programs and projected
lower production levels for certain vehicle models will adversely
affect some operations in the Automotive Group during the second
half of 1995. This, however, should be offset by broader market
penetration. The improved performance of the Construction Equipment
Division accounted for much of the improvement in the Machinery
Group. Shipments of wheeled tractor scrapers and forklift trucks
were at a high level and continued improvement in operating
efficiencies accounted for the gains. The results for the
Electronics Division were similar to those for the second quarter of
1994. This Division has been able to develop products for the
commercial aerospace market and also serves those segments of the
defense market which have been less susceptible to funding cuts than
others. In the Industrial Group, the Minerals Division, which
manufactures diatomaceous earth products primarily for the consumer,
non- durable market, performed well during the quarter. Results of
the remaining operations in the Group were mixed.
"On February 28, 1995, the Company filed a plan of
reorganization (the Plan) with the U.S. Bankruptcy Court, Southern
District of Ohio, in Cincinnati, Ohio. The Plan was proposed
jointly with the Injury Claimants' Committee (ICC) and the Legal
Representative for Future Claimants (RFC). The ICC represents,
among others, approximately 150,000 persons alleging injury due to
exposure to asbestos-containing products that Eagle-Picher
manufactured from 1934 to 1971. Future personal injury claimants
are represented by the RFC. Since the filing of the Plan, the
Company has continued to pursue its goal of achieving a plan of
reorganization which has the support of the Unsecured Creditors'
Committee and the Equity Security Holders' Committee appointed in
its chapter 11 case as well as the support of the ICC and RFC. To
date, however, little progress has been made toward achieving this
goal and there is no assurance that it will ever be achieved. As
has been stated in past reports, under any plan of reorganization,
pre-petition unsecured creditors will not receive satisfaction in
full of their allowed claims. Under the Bankruptcy Code,
shareholders are not entitled to any distribution under a plan of
reorganization unless all classes of pre-petition creditors receive
satisfaction in full of their allowed claims or accept a plan which
allows shareholders to participate in the reorganized company or
receive a distribution. At this time, it is not possible for the
Company to estimate when a plan of reorganization will be confirmed
and become effective."
The figures follow:
(Data in thousands except per share)
Three Months Ended May 31 1995 1994
Net sales $225,378 $196,994
Operating income 19,147 17,537
Other non-operating items (479) (383)
Reorganization items (331) (923)
Income before taxes 18,337 16,231
Net income 16,776 14,669
Net income per share 1.52 1.33
Average shares 11,041 11,041
Six Months Ended May 31 1995 1994
Net sales $422,981 $374,748
Operating income 34,260 31,318
Other non-operating items (581) (671)
Reorganization items (756) (2,005)
Income before taxes 32,923 28,642
Net income 29,808 25,708
Net income per share 2.70 2.33
Average shares 11,041 11,041
/CONTACT: J. Rodman Nall of Eagle-Picher Industries, 513-721-7010/
Grand Union reorganization plan is now effective
WAYNE, N.J.--June 15, 1995--The Grand Union
Company announced today that its Plan of Reorganization is now effective.
Implementation of the Plan means that the company has now
emerged from bankruptcy.
Grand Union, which operates 231 retail food stores in six
Northeastern states, filed for Chapter 11 protection on January 25,
1995. Joseph J. McCaig, president and chief executive officer, said
"The conclusion of our bankruptcy proceedings and the implementation
of our Plan of Reorganization now allows us to commence our growth
once again as a highly-competitive and financially-sound company."
"Our ability to emerge from bankruptcy so quickly is a tribute
to all of our associates, customers and creditors who fully
cooperated with us during this five-month period," McCaig said.
CONTACT: The Grand Union Company
Donald C. Vaillancourt, 201/890-6100
NEW BREAST IMPLANT SETTLEMENT CLAIMS NUMBERS ANNOUNCED, A STATEMENT
FROM CHARFOOS & CHRISTENSEN, P.C.
DETROIT, Oh--June 15, 1995--The following is a statement by
J. Douglas Peters of Charfoos & Christensen, P.C., of Detroit,
member of the Plaintiffs' Steering Committee, P.S.C.:
On June 15, 1995, Global Settlement Claims Administrator Ann
Cochran announced registration and claims figures against the Global
Settlement Fund that are guaranteed to shock breast implant victims,
and frighten Shareholders of Baxter, 3M, and Bristol-Myers.
The figures strongly demonstrate the extent of HREF="chap11.dow.html">Dow Corning's
fraud on the scientific community. For years, Dow Corning has
publicly insisted that approximately two (2) million women have
received implants, although Dow's internal confidential estimates
suggested a figure of between 280,000 and 750,000 implant
recipients. The figures released by the Claims Administrator show
that 440,000 women have registered as having implants. This
suggests that the lower internal Dow numbers are correct. By using
the large numbers it has been publicly touting, Dow Corning has
successfully manipulated the prevalence of breast implants so as to
produce epidemiologic studies which falsely show that only a few of
the many women with breast implants are complaining of illness. In
stark reality, the figures released by the Claims Administrator
demonstrate that there are 96,000 disease claims of the
approximately 440,000 women registering as having silicone gel
breast implants. These startling figures show that approximately
22% of women with silicone gel breast implants have suffered (one or
more) serious disease(s) as a result of silicone implants.
The figures released by the Claims Administrator show that
440,000 women have been identified as having silicone gel breast
implants. Of that number, 96,000 have filed claims with supporting
medical documentation. Of the 96,000 claimants, 20,000 would likely
be approved without further documentation. Of the 96,000 claimants,
approximately 50,000 had minor deficiencies in claims or supporting
documents, and they would be given a period of time to make
corrections. Of the 96,000 claims, the remaining 26,000 along with
any of the 50,000 with minor deficiencies that are not corrected,
would be carried forward for consideration in future years.
At the current funding level of the Global Settlement for
disease claimants ($1.2 billion) the Court estimates, based on a
3,000 claims sample, that if only the 20,000 perfected claims were
paid, each claimant would receive only 12-16% of the amounts shown
on the grid. However, if the minor deficiencies were corrected in
the 50,000 claimants and the 20,000 claims were also paid, the
payment percentages would drop to less than 5% of the scheduled grid
amount. This would constitute a 95% ratchet down. In other words,
prospective claimants would be paid five cents on a dollar.
It is now apparent that Dow Corning, with early insight into
these figures, viewed Chapter 11 bankruptcy as a solution to its
many problems. As jury trials continued in the court system against
Dow Corning and as juries continued to award substantial damages,
including punitive damages because of Dow Corning's wrongdoing, Dow
Corning realized that a "fair hearing" of the evidence by common
American citizens (jurors) was fatal to Dow Corning's position. By
filing Chapter 11 bankruptcy, Dow Corning has removed the facts from
unbiased jurors and now uses its substantial monies to effectuate a
cover-up plan that involves full-page ads in newspapers across the
United States, the control of publication and dissemination of
scholarly medical articles, and legislative manipulations which will
make it difficult for breast implant claimants and future product
liability victims to make any meaningful recoveries for the injuries
they have suffered. Where the plaintiffs were allowed to present
their side of the case before juries, they won. Plaintiffs have
neither the money nor expertise to rebut the massive public
relations onslaught being waged by Dow Corning. It is clear that
Dow Corning is attempting to convince the average American citizen
that breast implant victims are "neurotic women" who have been
driven to hysteria by greedy plaintiff attorneys, all in the absence
of any scientific evidence of implant dangers. To the contrary, Dow
Corning asserts that the (epidemiologic) studies have demonstrated
that silicone gel implants are safe. Dow Corning fails to mention
in its full-page ads that these studies were purchased with Dow
Corning money, and that all of these studies assumed that there were
two million women with implants. These studies also assumed a
disease incidence rate of under 3%. The figures above demonstrate
an incidence rate of disease of approximately 22%.
The silicone gel breast implant litigation may evolve into a
public policy debate: with ramifications for the entire legal
system; with ramifications for corporate America; with ramifications
for private and public health insurance companies which will have to
pay for the health care of these women; and, with ramifications for
the women and their families as they are now being told by Dow
Corning that they have no silicone-induced disease and will receive
no meaningful compensation.
/CONTACT: J. Douglas Peters of Charfoos & Christensen,
313-875-8080, or (in Michigan) 800-247-5974/
FERC APPROVES COLUMBIA GAS TRANSMISSION CUSTOMER SETTLEMENT
CHARLESTON, W.Va.--June 15, 1995--The Federal Energy
Regulatory Commission (FERC) today approved a settlement among
Columbia Gas Transmission Corp., the principal pipeline subsidiary
of The Columbia Gas System, Inc., (NYSE: CG)
its firm service
customers, various state regulatory agencies and consumer
representatives that resolves numerous Order 636 transition costs,
rate refund and bankruptcy-related matters.
FERC approval of the settlement is a key component of Columbia
Transmission's Chapter 11 reorganization plan. Columbia
Transmission filed the settlement with the FERC on April 17, 1995,
and incorporated it into the amended plan of reorganization filed
with the Bankruptcy Court in Delaware on the same day.
Columbia Transmission Chairman James P. Holland said: "We are
pleased with the FERC's action. This settlement is a very important
component of our reorganization plan. This action by the FERC keeps
us on track for emerging from Chapter 11 by the end of 1995."
In discussing the customer settlement at today's commission
meeting, Chair Elizabeth Moler said: "I want to highlight this order
for the simple purpose of congratulating those involved on reaching
this uncontested omnibus settlement. It is an essential
prerequisite to Columbia's being able to emerge from bankruptcy. It
has been a long and arduous and expensive ordeal. The notion that
they would be able to resolve over 100 commission proceedings and 40
pending court cases is, as my son would say, awesome."
Prior to the FERC decision, comments to the Commission were very
favorable. One set of comments, filed by a group of 57 local
distribution companies, consumer advocates and state public service
commissions urged the FERC to approve the plan without modification.
"All parts of this stipulation are inextricably intertwined - it is
an integrated whole," the group's filing stated.
The settlement agreement provides for refunds to customers by
Columbia Transmission of about $170 million. In addition, an
estimated $200 million in costs will be collected by Columbia
Transmission from customers depending upon when the settlement is
implemented. This settlement remains subject to Bankruptcy Court
approval in the context of Columbia Transmission's amended plan of
reorganization.
Columbia Gas Transmission Corp. and The Columbia Gas System,
Inc., have been operating as debtors-in-possession under Chapter 11
of the U.S. Bankruptcy Code since July 31, 1991.
/CONTACT: E. Kelly Merritt of Columbia Gas, 304-357-2283/
Plan of Reorganization for Value Merchants Inc. is confirmed; expected
effective date is June 27, 1995
MILWAUKEE, Wi--June 15, 1995--The Plan of
Reorganization for Value Merchants Inc.
(VUMIQ.BB) and its wholly-owned subsidiary Everything's A Dollar Inc., was
confirmed today by The United States Bankruptcy Court in Milwaukee.
The effective date for emerging from bankruptcy is expected to
be June 27, 1995.
During the confirmation hearing, the company reported that a $15
million exit financing facility has been obtained to support the
company's ongoing operations. ``We have successfully negotiated a
financing package that will result in an additional $7 million of
working capital,'' Steven J. Appel, president and chief executive
officer stated. ``Additionally, we will have $4 million of
availability beyond our planned needs as of June 27, 1995,'' he
said. ``This provides substantial opportunity for purchasing
additional merchandise and should be a source of confidence for our
vendors regarding this company's creditworthiness.
``Many businesses seek bankruptcy protection but cannot
reorganize sufficiently to emerge from the process and, as a result,
are liquidated,'' Appel stated. ``This company's emergence from
bankruptcy is a real tribute to all the parties in interest
including secured creditors, unsecured creditors, vendors,
shareholders, all the professionals and, most importantly, our
employees.'' Appel added, ``This has been a difficult and arduous
task with many competing interests, but from the beginning there has
been one common goal - to reorganize as a going concern. Although
much work remains,'' he said, ``there should be great pride in
achieving this significant milestone.''
The Plan calls for the issuance of new common shares of stock to
replace the company's current common shares outstanding. Unsecured
creditors will receive 85 percent of the new stock in payment of
their claims and current shareholders will receive 5 percent of the
new common shares. Participants in the senior secured loan are
converting a significant portion of their debt to subordinated
secured debt, 10 percent of the company's common shares and
subordinated unsecured long-term notes.
Fixture lenders will receive notes for approximately $8 million
payable over eight years secured by store fixtures and other
equipment in satisfaction of their claim of $23 million against the
company and unsecured bankruptcy claims of approximately $11
million.
Unsecured creditors will receive 3.6 million shares of the New
Value Merchants Inc. common stock - representing 85 percent of the
outstanding common stock. Administrative claims and priority wage
claims will be paid in full and sales tax claims amounting to
approximately $4.1 million plus interest will be paid over a six-
year period as allowed under the U.S. Bankruptcy Code.
CONTACT: Value Merchants Inc., Milwaukee
Gary I. Kastel, 414/274-2976