CINCINNATI, Ohio -- Sept. 14, 1995 -- href="chap11.epi.html">Eagle-Picher Industries
(OTC: EPIHQ.U) today announced that sales for the third quarter
ended August 31, 1995 were $210.7 million compared with $186.2
million for the third quarter of 1994. Operating income for the
quarter declined to $14.0 million from $14.2 million for the same
period last year. Net income for the third quarter of 1995 was
$23.4 million or $2.12 per share compared with $11.7 million or
$1.06 per share for the third quarter of 1994. This is a result of
the Company's realization of a pretax gain of $11.5 million on the
sale during the quarter of securities which the Company received in
the reorganization of a supplier to which it had provided financing.
At the end of the third quarter of 1995, the Company's cash position
was $100.4 million. This compares with a cash position of $92.6
million at the end of fiscal year 1994 and $94.8 million at the end
of the third quarter of 1994.
Thomas E. Petry, Eagle-Picher Chairman, said that "during the
quarter, the economy continued to perform at a reasonably high
level. Profitability, however, was adversely affected in the
Automotive Group by seasonal plant shutdowns by customers and normal
model year change- overs. Recovering cost increases remains
difficult and is a concern, particularly if a decline in automotive
production should occur. European operations, particularly those in
Germany, experienced a high level of demand for their products
during the third quarter. As the automotive manufacturers worldwide
continue to rely increasingly on their supplier base, opportunities
for new business never have been better. The further improvements
by the Construction Equipment Division accounted for much of the
gain in the Machinery Group during the period. Shipments of wheeled
tractor scrapers and forklift trucks were at a high level and
continued improvement in operating efficiencies accounted for the
gain. It is anticipated, however, that production schedules for
wheeled tractor scrapers in the fourth quarter and entering 1996
will be reduced. The Electronics Division enjoyed an excellent
quarter as demand for special purpose batteries used in defense,
aerospace, and satellite applications exceeded that of the third
quarter of 1994. In the Industrial Group, the Minerals Division
which manufactures diatomaceous earth products used for filtration
and general industrial applications, and the Specialty Materials
Division, a manufacturer of germanium, boron, and gallium compounds
used in the electronics and nuclear industries, experienced sales
and earnings increases over the third quarter of 1994. After the
close of the quarter, the Company announced its intention to sell
the injection molding and microcellular portions of the Orthane
Division's business.
"On February 28, 1995, the Company filed a plan of
reorganization (the Plan) and Disclosure Statement 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. To date, no hearing has been
set by the Bankruptcy Court to consider approval of the proposed
Disclosure Statement filed with the Plan and the Company does not
know when such a hearing will be set. During the quarter, the
Company filed a motion requesting that the Bankruptcy Court estimate
the Company's aggregate liability on account of present and future
asbestos-related personal injury claims. As set forth in the
motion, the estimate of such aggregate liability would be for the
purposes of determining the appropriate distributions to creditor
classes under the Plan or any other plan that may be proposed in the
reorganization cases. A hearing on the motion has been set for
September 20, 1995."
The figures follow:
(Data in thousands except per share)
Three Months Ended August 31 1995 1994
Net sales $210,723 $186,191
Operating income 14,022 14,226
Gain on sale of investment 11,505 --
Other non-operating items 99 (155)
Reorganization items (132) (979)
Income before taxes 25,494 13,092
Net income 23,394 11,733
Net income per share 2.12 1.06
Average shares 11,041 11,041
Nine Months Ended August 31 1995 1994
Net sales $633,704 $560,939
Operating income 48,282 45,544
Gain on sale of investment 11,505 --
Other non-operating items (482) (826)
Reorganization items (888) (2,984)
Income before taxes 58,417 41,734
Net income 53,202 37,441
Net income per share 4.82 3.39
Average shares 11,041 11,041
ATLANTA, Georgia, Sept. 14, 1995 -- href="chap11.sportstown.html">SportsTown, Inc. (Nasdaq:
SPTN), announced that it had, in conjunction with the Creditors'
Committee in its bankruptcy case, filed the First Amended Joint Plan
of Liquidation (the "Plan") and a related Disclosure Statement with
the United States Bankruptcy Court for the Northern District of
Georgia. The Plan provides that holders of administrative claims,
secured claims and certain tax claims will be paid in full upon the
effective date of the Plan. The Plan further provides that the
remaining assets of the Company following the liquidation of its
inventory and other assets and the sale or surrender of the
Company's leases will be distributed to the Company's unsecured
creditors. Equity holders will receive no distribution under the
Plan. If approved as filed, the Plan would cause the cancellation
of all the Company's common stock, the deregistration of the
Company's common stock under the Securities Exchange Act of 1934 and
the dissolution of the Company for corporate law purposes.
The Bankruptcy Court has set a hearing on Oct. 19, 1995 to
consider, among other things, the approval of the Disclosure
Statement submitted in connection with the Plan. The Company filed
bankruptcy under Chapter 11 of the Bankruptcy Code on Feb. 7, 1995.
/CONTACT: Thomas K. Haas, Chairman and CEO, or Clyde Fossum, Senior
Vice President, CFO, 404-246-5300, both of SportsTown, Inc./
Dow Corning Corporation v. Hartford
Accident and Indemnity Co., et
al.
Because of the number of media inquires recently received by Dow
Corning concerning its silicone breast implant insurance coverage
trial scheduled to begin on September 18, 1995 in Detroit, Dow
Corning is issuing this media backgrounder to answer the most
commonly-asked questions.
In September 1993, a number of Dow Corning's product liability
insurers brought an action in the Circuit Court for Wayne County,
Michigan, contesting their obligation to pay defense and
indemnification expenses incurred by Dow Corning in connection with
breast implant product liability cases pending throughout the
country. Eventually, over 100 insurers and approximately 700
insurance policies became involved in the litigation, which is
assigned to Judge Robert J. Colombo, Jr.
Dow Corning has vigorously pursued, and will continue to pursue,
settlement with all of the insurers who provided insurance coverage
for silicone breast implants during the approximately 30 years in
which the device was sold.
Dow Corning has been successful in reaching settlements with
several of its major insurance carriers. However, settlement has
not yet been reached with the majority of its insurers.
The principal issues in the upcoming trial are whether, and to
what extent, the insurance policies purchased by Dow Corning from
1962 through 1985 provide coverage for Dow Corning's silicone breast
implant liabilities. The policies at issue in the Detroit coverage
litigation are "occurrence" policies, which provided coverage for
bodily injuries that occurred during the respective policy periods.
The breast implant plaintiffs generally allege various bodily
injuries occurring continuously from the date of implant.
For the years after 1985, Dow Corning purchased "claims made"
insurance coverage, which provides coverage for lawsuits arising
during the year in which the claim is asserted. The "claims made"
policies are not at issue in the Detroit litigation.
In recent weeks, a number of Dow Corning's insurers have reached
tentative settlement agreements with Dow Corning in fulfillment of
their insurance obligations. In the near future, those settlement
agreements that are finalized will be submitted to the bankruptcy
court in Bay City, Michigan for approval.
Dow Corning Corp., a global leader in silicon-based materials,
is a Michigan corporation with shares equally owned by The Dow
Chemical Co. (NYSE: DOW) and Corning Inc. (NYSE: GLW). More than
half of Dow Corning's sales are outside the U.S.
/CONTACT: Barb Muessig of Dow Corning, 517-406-8841/
Company expects swift confirmation and emergence from Chapter 11
prior to holiday selling season
SEATTLE, Washington -- Sept. 14, 1995 -- href="chap11.jay.html">Jay Jacobs, Inc. (Nasdaq:
JAYJQ) announced that it filed a plan of reorganization today in
U.S. Bankruptcy Court after only 16 months in Chapter 11. The
consensual plan has the support of all of the major stakeholders in
the reorganization including the creditors committee. The company
expects to emerge from Chapter 11 some time in the fall, prior to
the start of the holiday selling season.
"When I came to Jay Jacobs last September, I saw a company that
still had a lot of potential, which enabled me to attract some of
the top talent in the industry. Since then, our team has put the
systems in place so we could emerge from Chapter 11 quickly, and
revitalized the entire organization." said Rex Steffey, President
and CEO of Jay Jacobs. "Over the past year we have re-directed the
company's merchandising strategy and focused on the bottom-line, and
we are optimistic about the company's future prospects once we
emerge from Chapter 11."
"Thanks to the cooperation of the creditors committee, we have
developed a plan of reorganization that we believe is equitable for
all of our major stakeholders."
Under the terms of the plan unsecured creditors have the option
of a cash payout over two years equaling 60 percent of their allowed
claim. The unsecured creditors' second option calls for a forty-five
percent cash payout over two years and notes equaling forty-two
percent of the allowed claim, for a total payment of eighty-seven
percent of the allowed claim by the year 2001.
Shareholders of common stock will retain their current equity
interest in the company.
"Now that we have filed a consensual agreement, which includes
all major stakeholders, Steffey and his management team can focus
their efforts on continuing the company's progress as they move back
into the black," said Jim Colson, Creditors Committee member and
representative of Star of India, a key vendor of Jay Jacobs. "We
are pleased with the company's progress to date, and look forward to
continuing our relationship with Jay Jacobs."
Steffey cited the following accomplishments of the management
team over the past year:
"Our swift progress is a real credit to the expertise of our
team and the dedication of all of Jay Jacobs' employees," concluded
Steffey.
Confirmation and implementation of the plan is dependent on a
number of factors, including the formal approval of the majority of
unsecured creditors.
Seattle-based Jay Jacobs, Inc. carries fashionable merchandise
for young men and women in its 158 apparel stores located primarily
in regional shopping malls in 21 states.
/CONTACT: Carreen Winters or Michael W. Kempner of MWW/Strategic
Communications, Inc., 201-507-9500/
North Reading, Mass.--September 14, 1995--href="chap11.apex.html">Apex
One, Inc., a subsidiary of Converse Inc. (NYSE:CVE), announced
today
that it has filed a voluntary petition under Chapter 11 of the
Federal Bankruptcy Code in the United States Bankruptcy Court for
the District of New Jersey. The bankruptcy filing resulted from the
previously announced cessation of Apex One operations on August 9,
1995.
The Chapter 11 filing by Apex One, Inc. has no impact on the
operations of Converse Inc.
Converse Inc. is a leading designer, manufacturer and marketer
of athletic and leisure footwear and related products.
CONTACT: Investor Contact:
Robert Jones/Edward Nebb,
Christine DiSanto,
Morgen-Walke Associates,
212/850-5600
or
Media Contact:
Stacy Berns,
Morgen-Walke Associates,
212/850-5600
Tustin, Calif.--Sept. 14, 1995--The Cerplex
Group, Inc. (Nasdaq:CPLX) today announced the decision to
discontinue its end-of-life programs, a segment of its business, and
to reserve a portion of its asset exposure with respect to
SpectraVision, a significant
customer of the Company which is
currently operating under protection of Chapter 11 of the Bankruptcy
Code.
Cerplex expects this decision to result in approximately $22
million in pre-tax write-offs in the third quarter ending September
30, 1995. The write-offs will include inventories, fixed assets,
goodwill and other intangibles, leasehold improvements and
provisions for facility consolidations, as well as a reserve for
receivables, inventories and assets related to two of the Company's
customers.
In its end-of-life programs Cerplex assumes all responsibilities
for the support and repair of products which are no longer
manufactured or are being phased out of manufacturing. Generally,
when the Company undertook an end-of-life program the Company
acquired substantially all the unique test equipment, repair
equipment and inventories needed to support the program, typically
for an extended period of time. This often resulted in significant
up-front capital expenditures. Services provided by Cerplex under
the end-of-life programs include repair, provision of spare parts
for a defined period, plant of return and parts reclamation,
engineering and document control, warehousing, and vendor
certification and management.
Net sales from end-of-life programs were approximately $55
million in 1993 compared to approximately $33 million in 1994 and an
estimated $19 to $21 million in 1995. Margins in the end- of-life
programs have been adversely affected over this period of time as a
result of decreasing sales. The Company believes that the decision
to discontinue end-of-life programs will enable it to focus its
resources on its other business programs, which have grown from
approximately $24 million in 1993 to an amount in excess of $140
million for the year ending December 31, 1995.
The Cerplex Group is a leading independent provider of
electronic repair and parts logistics services. The Company has
developed extensive capabilities in the repair, refurbishment,
upgrade and testing of a wide range of electronic equipment
primarily for the computer and telecommunications industries, as
well as for the medical instrumentation and other industries
utilizing electronic equipment.
CONTACT: AT THE COMPANY:
Bruce D. Nye,
Vice President and Chief Financial Officer,
(714) 258-5600