KLH completes financing
ENGLEWOOD, Colo.--Aug. 14, 1995--KLH
Engineering Group Inc. announced that it finalized its financing
package on Aug. 11, 1995.
The terms of the agreement reached with Industrial State Bank
and First State Bank of Kansas City include the extension of a $1.5
million credit facility to KLH for a term of three years. This
facility will allow KLH to pay off First State Bank of Kansas City,
and remove First State Bank's objection to emergence from bankruptcy
of Tomahawk Construction Co., a wholly owned subsidiary of KLH.
In addition, Delmar A. Janovec, president and chairman of the
board of KLH, purchased Tomahawk's outstanding loan of approximately
$3.2 million from Industrial State Bank. Janovec will exchange the
note for an additional equity position in KLH prior to the end of
the 1995 fiscal year. This will reduce the outstanding obligations
of KLH and provide a substantial equity capital infusion to bring
total stockholder equity in KLH to approximately $4 million, an
increase of approximately 300%.
The completion of this financing package will allow Tomahawk to
emerge from bankruptcy on Aug. 28, 1995. Janovec stated: "We are
excited to finally complete this restructuring. We will now be able
to devote our time to becoming more productive and improving our
bottom line."
KLH Engineering Group Inc. is a full-service consulting,
engineering and construction firm based in Englewood, Colo. The
company's common stock trades on the NASD OTC Bulletin Board under
the symbol "KLHE."
CONTACT: KLH Engineering Group Inc.
Michael Cederstrom, 913/621-4233
Florida West Airlines makes announcement
MIAMI, Fla.,--Aug. 14, 1995--Kenneth A. Welt, the
Chapter 11 Trustee for Florida West Airlines
Inc. ("Florida West"),
Monday announced that Florida West closed today the sale of
substantially all of the assets of Florida West and its subsidiaries
to Florida West International Airways Inc., a Delaware corporation
and certain of its designees for an aggregate purchase price of
approximately $3.5 million in cash.
The asset sale is in connection with the liquidation of Florida
West's business pursuant to Chapter 11 bankruptcy proceedings.
Florida West and its subsidiaries were engaged in the operation
of a cargo airline service.
CONTACT: Florida West Airlines Inc., Miami
Richard L. Haberly, President and C.E.O.
305/599-2500
Plaid obtains court approval for $75 million
in permanent DIP financing; company sells excess inventory to
Today's Man for more than $12 million
NEW YORK, NY,--Aug. 14, 1995--Plaid Clothing
Group Inc., which filed Chapter 11 last month, today announced it has
received U.S. Bankruptcy Court approval for $75 million in permanent
debtor-in-possession (DIP) financing.
The DIP facility was entered into with Plaid's existing lending
group, led by Transamerica Business Credit Corp. Court approval of
the facility will enable Plaid to continue production, meet customer
obligations and plan for future selling seasons. Plaid has been
operating under a $13 million interim financing package which was
approved by the court on July 19.
"We are pleased with the support that we have received from our
lending group since the Chapter 11 filing and appreciate their hard
work in putting together the permanent financing," said Richard C.
Marcus, Plaid's chief executive officer. "The approval of permanent
financing is a key milestone in our efforts to get Plaid back on
track and gives us the resources to meet our ongoing commitments to
suppliers, licensors and customers."
Plaid also announced that the court had approved the sale by
Plaid to Today's Man of a substantial amount of excess inventory for
a purchase price in excess of $12 million. Included in the sale
were approximately 136,000 units of excess hanging inventory and
278,000 yards of piece goods. In addition the purchase of
approximately 32,000 units of existing fall orders are to be
financially guaranteed. As part of the sale agreement, on Friday
Aug. 11, Today's Man paid Plaid approximately $3.5 million in
satisfaction of its outstanding receivable to Plaid.
William V. Roberti, president and chief operating officer of
Plaid stated, "The sale of our excess inventory will provide the
company with liquidity that, in conjunction with our permanent
financing, will enable us to continue to meet our obligations. In
addition, the removal of the excess inventory will allow our
management team to focus their efforts on successfully reorganizing
the business."
On the operating side, Roberti said that the company was
continuing to identify cost reduction opportunities. He added, "We
are optimistic about the coming spring season and are determined to
work to emerge from Chapter 11 as quickly as possible."
Plaid, based in New York City, is the nation's second largest
manufacturer of men's and boy's tailored clothing. The company owns
various trademarks such as Palm Beach, Haspel, and Gleneagles and
holds licenses for the manufacture of a number of prestigious
brands.
CONTACT: Sard Verbinnen & Co., New York
Paul Verbinnen/Jeanne Donovan
212/687-8080
SPECTRAVISION ANNOUNCES SECOND QUARTER RESULTS
Revenues of $32.1 million; EBITDA of $3.3 million
DALLAS, Texas--August 14, 1995--
SpectraVision, Inc. (AMEX:SVN) today announced lower revenues for the second
quarter ended June 30, 1995 compared to the second quarter a year ago.
Second quarter revenue was $32.1 million in fiscal year 1995,
down from $36.5 million (adjusted) in 1994. Revenue for the six
months ended June 30, 1995 was $65.2 million, compared to $73.6
million for the same six month period a year ago.
SpectraVision sought protection under Chapter 11 of the U.S.
Bankruptcy Code on June 8, 1995 in order to complete its financial
restructuring. The company obtained $40 million in debtor-in-
possession financing on June 9, 1995. After retiring the existing
bank revolver, the company's available cash exceeds $25.0 million.
Earnings before interest, taxes, depreciation, amortization and
other non-cash items (EBITDA) was $3.3 million for the second
quarter of 1995, compared to $9.0 million in the second quarter of
1994. EBITDA for the six months ended June 30, 1995 was $7.1
million, down from $17.1 million for the six months ended June 30,
1994. The company recorded a net loss of $19.7 million for the
second quarter of 1995, compared to a net loss of $14.1 million for
the second quarter of 1994. Net loss for the first six months of
1995 was $39.6 million, compared to a net loss of $29.3 million for
the same period in the prior year.
The company also said that Revenue per Equipped Room (RER) was
$.49 for the second quarter of 1995, compared to $.52 for the same
quarter of the previous year. RER for the six month period ended
June 30, 1995 was $.50, down from $.51 in the same period a year
ago.
"In the second quarter, SpectraVision sought Chapter 11
protection in order to recapitalize and address the problems with
our capital structure that have prevented the company from meeting
its full potential," said Gary Weik, chief executive officer of
SpectraVision. "The filing has also provided us with access to
short-term financing, allowing us to fulfill commitments to existing
customers and continue to make operational improvements that will
yield long-term benefits -- such as the reorganization of our
customer service function and the rollout of new technology."
Weik added, "We have stabilized EBITDA over the last three
quarters, and we are currently developing a plan of reorganization
that will significantly reduce our debt burden. Our restructuring
is proceeding as planned and we look forward to restoring the
company to financial strength."
SpectraVision, Inc. is the leading supplier of in-room, pay-per-
view entertainment and information services to the worldwide lodging
industry. Through its STARPATH(TM) technology, it is the only
company in the lodging industry delivering compressed digital video
and digital video-on-demand to hotels in North America. Founded in
1971, the company markets its products and services in the U.S.,
Canada, Mexico, the Caribbean, Australia and the Pacific Rim. -0-
SPECTRAVISION, INC.
CONDENSED STATEMENTS OF FINANCIAL POSITION
(In thousands)
(Unaudited)
June 30, June 30,
1995 1994
Cash and equivalents $ 1,952 $ 2,027
Accounts receivable 21,030 22,222
Debt issuance costs (net) 6,022 7,415
Prepaids and other assets 8,028 11,976
Video systems 131,129 125,154
Land, building and equipment 8,094 7,084
Unamortized hotel contracts 48,701 247,259
Total assets $224,956 $423,137
Accounts payable and accrued
liabilities $ 3,636 $ 47,809
Current and deferred income taxes 6,536 31,927
Bank credit facilities -- 10,350
Foothill revolving facility 15,408 --
11.5% senior discount notes -- 162,923
11.65% reset notes -- 277,264
Other debt 414 20,953
Liabilities subject to settlement
under reorganization 591,593 --
Contingent value rights subject to
settlement under reorganization 20,000 20,000
Stockholders' deficit (412,631) (148,089)
Total liabilities and stockholders'
deficit $ 224,956 $ 423,137
SPECTRAVISION, INC.
SUMMARY STATEMENT OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Quarter Ended June 30,
1995 1994
Revenues $ 32,073 $ 36,537
Operating loss (6,871) (3,326)
Net loss (19,690) (14,094)
Loss per common share $ (0.82) $ (0.59)
Average common shares outstanding 23,983,905 23,983,905
Six Months Ended June 30,
1995 1994
Revenues $ 65,208 $ 73,637
Operating loss (12,236) (6,718)
Net loss (39,644) (29,312)
Loss per common share $ (1.65) $ (1.22)
Average common shares outstanding 23,983,905 23,983,905
CONTACT: SpectraVision, Inc.
Media: Robert Mead, 212/484-6701
Investor: Janice Schroer, 214/301-9016