WILMINGTON, Del., Oct. 18, 1995 -- href="chap11.columbia.html">The Columbia Gas
System, Inc. (NYSE: CG) today announced two favorable
developments
in its Chapter 11 bankruptcy proceedings.
Columbia said that preliminary results compiled by its balloting
agent indicate that the separate Chapter 11 reorganization plans
filed by the Corporation and by Columbia Gas Transmission Corp., its
principal pipeline subsidiary, have been accepted by the necessary
majorities of each company's creditors and the Corporation's
shareholders. Balloting on the plans was concluded Friday, October
13.
The Corporation also announced that the Internal Revenue Service
has issued a ruling that payments Columbia Gas Transmission will
make to producers under its reorganization plan are deductible in
the year in which the payments are made. The issuance of the IRS
ruling was a condition of both the Corporation's and Columbia
Transmission's reorganization plans.
Columbia System Chairman and CEO Oliver G. Richard III said he
was "elated with the results of the balloting and the favorable
ruling by the IRS, which eliminate two major hurdles in our
bankruptcy proceedings. We are increasingly optimistic that our
plans of reorganization will be confirmed and we will be able to
emerge from Chapter 11 before the end of the year."
Richard said final results of the balloting will be available by
November 13, 1995, the scheduled date for the commencement of the
confirmation hearings on both plans.
The two companies have been operating as debtors-in-possession
under the U.S. Bankruptcy Code since July 31, 1991.
/CONTACT: Media, H.W. Chaddock, 302-429-5261, or W.R. McLaughlin,
302-429-5443, or Analysts, T.L. Hughes, 302-429-5363, or K.P.
Murphy,
302-429-5471/
NORTH CANTON, OHIO--October 18, 1995--Belden & Blake Corporation
(NASDAQ: BELD) today announced that it plans to sell Engine Power
Systems, Inc. (EPS), a wholly-owned subsidiary. EPS is engaged in
engine sales and system packaging for power generation, co-
generation, gas compression and air compression applications. The
company acquired EPS in February 1994 with the objectives of
increasing its vertical integration in gas marketing and
strengthening its gas marketing capability.
The decision to sell EPS will result in a pre-tax charge of
approximately $1.1 million in the third quarter to account for
operating losses, the write-down of various assets and inventories
to estimated realizable value and to provide for the estimated costs
related to asset disposals and future losses prior to the sale.
Including this charge, EPS' losses for the year total approximately
$1.5 million.
``EPS did not perform up to expectations. To advance additional
funds to its operations would not be a prudent use of the company's
capital,'' said Henry S. Belden IV, Chairman and Chief Executive
Officer.
Taking the special charge for EPS into account, the company
expects net income for the quarter ending September 30, 1995 to
equal the $1.1 million reported in the third quarter of 1994. On a
per share basis, net income for the 1995 period is expected to be
approximately $0.11 per share with a weighted average of 9.7 million
shares outstanding. This compares to net income of $0.15 per share
for the 1994 period with a weighted average of 7.1 million shares
outstanding.
The company also identified other factors affecting earnings and
cash flow for the third quarter of 1995. Exploration expense in the
1995 period is expected to be more than double the $732,000 spent in
the third quarter of 1994, primarily due to higher levels of seismic
activity and technical staffing. The company's 1995 drilling budget
is more than double drilling expenditures for 1994, and the increase
in exploration expense reflects this growth. Through September 30,
1995, exploration expenses for the year total approximately $3.4
million compared to $2 million for the same period of 1994.
The company has also voluntarily curtailed gas production since
July of 1995. Gas production was further curtailed during this
period by interstate pipeline repairs and construction. Lower
volumes as a result of these curtailments are expected to reduce gas
revenue in the third quarter of 1995 by approximately $1.5 million.
October 1995 curtailments, which are primarily due to new
construction on the Michigan Consolidated pipeline system, are
expected to reduce fourth quarter revenues by approximately
$600,000. In November and December of 1995 the company expects gas
production to be at or near full capacity.
``These decisions were made and actions were taken with the
objective of maximizing long term value to the shareholders. With
respect to exploration expenses, we are committed to being able to
grow the company through drilling. You see that commitment
reflected in our exploration expenditures in 1995, and the growth in
oil and gas reserves added through drilling has exceeded the
increase in exploration expense.'' Mr. Belden said.
``When we made a number of our recent acquisitions, we were
confident that part of the upside to the properties acquired would
be our ability to realize higher gas prices over time. Some of the
properties purchased from Quaker State Corporation in July 1995 had
gas wells shut in when the transaction closed. In addition, when
spot market gas prices fell this summer, we deemed it prudent to
temporarily shut in certain wells to conserve resources. That
decision is validated by the fact that we expect the wells to
produce at nearly full capacity and at prices consistent with our
acquisition economics for the last two months of the year,'' Mr.
Belden continued.
Earnings in the third quarter of 1995 will include the
recognition of anticipated proceeds from contract rejection claims
that have been filed in the bankruptcy proceedings of href="chap11.columbia.html">Columbia Gas
Transmission Corporation. Although the company has not
reached any
settlement agreement with Columbia on the rejected contract claims,
Columbia has included a payout amount for claims filed by the
company in excess of $1.3 million in Columbia's plan of
reorganization. The company intends to pursue the recovery of a
greater amount from Columbia and anticipates hearings with respect
to its claims to take place in early 1996. The exact amount and
timing of any recovery has not been determined.
Belden & Blake Corporation is actively engaged in producing oil
and natural gas, acquiring producing oil and gas properties,
exploratory and development drilling and gas gathering and marketing
in the Appalachian and Michigan Basins.
CONTACT: Belden & Blake Corporation, North Canton,
Charles P. Faber, 216/499-1660
PURCHASE, N.Y., Oct. 18, 1995 -- href="chap11.spectrum.html">Spectrum Information
Technologies, Inc. today announced that it received bankruptcy
court
approval and completed the sale of its wholly owned subsidiary,
Spectrum Global Services, Inc., to The Lori Corporation (AMEX: LRC)
and COMFORCE Corporation for approximately $6 million.
"This sale is consistent with our desire to focus our energies
and resources towards strengthening our proprietary direct-connect
technology business," said Donald J. Amoruso, Spectrum's Chairman
and Chief Executive Officer.
Spectrum Global Services provides telecommunications and
computer technical staffing services to its clients on a contract
basis. For the fiscal year ended March 31, 1995, Spectrum Global
had revenues of $9 million and, on a stand-alone basis excluding
certain corporate allocations, would have earned $920 thousand on a
pretax basis. As of June 30, 1995, Spectrum Global had
approximately $2.5 million in cash and accounts receivable.
Based in Purchase, Spectrum Information Technologies develops
and licenses direct-connect technology related to the wireless
transmission of data. In January, the Company filed a voluntary
chapter 11 petition, for itself and three subsidiaries, in the U.S.
Bankruptcy Court for the Eastern District of New York. In May 1995,
the chapter 11 case of its Computer Bay subsidiary was converted to
a case under chapter 7. Spectrum is in the process of developing a
plan of reorganization.
/CONTACT: Michael Freitag, Media, of Kekst and Company,
212-593-2655; or Spectrum Information Technologies, Inc., Investor
Relations, 914-251-1800 ext. 182/
SECAUCUS, N.J.--Oct. 18, 1995--href="chap11.jamesway.html">Jamesway
Corporation announced today that it has filed a petition for
relief
under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York.
The filing was made as a result of weak sales results, continued
operating losses and increasingly constricted trade credit.
Jamesway Corporation operates a chain of regional discount
department stores in seven Northeastern and mid-Atlantic States.
All of the company's 90 retail stores will be open for business
today. Jamesway plans to operate its stores so as to yield the
greatest possible return to its creditors and equity holders. This
will include aggressive merchandise promotions and, possibly,
conducting "going out of business" sales.
Jamesway and a group of banks, led by CIT Group/Business Credit,
Inc., the company's pre-petition lender, have negotiated the terms
of a debtor-in-possession financing facility in an amount up to $25
million.
Jamesway also announced that Michael J. Sherman, a member of
the Board of Directors with extensive experience supervising
corporate reorganizations, has been appointed Executive Vice
President-Special Projects with general responsibility for the
Chapter 11 process.
In connection with the filing, Jamesway has asked the Court for
permission to immediately pay recently terminated employees up to
$4,000 each, the amount allowed as a priority claim under the
Bankruptcy Code, for severance, vacation pay and medical claims
under the company's self-insured medical plan.
CONTACT: Kekst and Company,
Jim Fingeroth/Jason Lynch, 212/593-2655
WELLESLEY, Mass., Oct. 18, 1995 -- In response to Mr.
Dorfman's comments today on CNBC's "The Money Wheel," Filene's
Basement (Nasdaq: BSMT) issues the following response:
Mr. Dorfman implied that Filene's Basement may be on the verge
of a Chapter 11 filing. This is absolutely not the case; the
Basement has no plans or considerations for such an action.
As a matter of record, the company has in fact closed on an
expanded credit facility which provides greater flexibility in its
operating covenants. Additionally, the company expects increased
availability from its factors as a result of the recently announced
agreement.
Filene's Basement Corp. operates specialty stores which offer
focused, quality, branded assortments of men's and women's apparel
at prices generally 20-60% below department and specialty store
regular prices. The company has 49 stores operating primarily in
the Northeast and Midwest.
/CONTACT: Steve Siegel, CFO of Filene's Basement,
617-348-7100/
SAN JOSE, Calif.--Oct. 18, 1995--Diamond
Multimedia Systems, Inc. (NASDAQ: DIMD) reported increased sales and
earnings for the three and nine months ended September 30, 1995.
For the third quarter of 1995, revenues increased 129 percent to
$102.2 million from $44.6 million in the same quarter a year ago.
Supra, acquired by Diamond on September 20, 1995, accounted for
approximately $5 million in revenues. For the quarter ended
September 30, 1995, Diamond recorded net income of approximately
$8.3 million, or 30 cents per share, on approximately 28.0 million
shares, before a one-time in-process technology write-off related to
the acquisition of Supra Corporation of $38.7 million or
approximately $1.38 per share. This compares to the third quarter
of 1994, when the company reported net income of $3.7 million, or 17
cents per share on approximately 20.9 million shares.
For the nine months ended September 30, 1995, revenues were
$277.6 million compared with $142.7 million for the same period a
year ago. Including the $38.7 million of in-process technology
write-off, the company reported a net loss of $16.4 million, or 66
cents per share on approximately 24.9 million shares, for the nine
month period. Without the one-time write-off, Diamond would have
reported net income of $22.3 million, or 89 cents per share. In the
nine months of 1994, Diamond reported net income of $14.6 million,
or 70 cents per share on approximately 20.9 million shares.
Separately, Diamond's Board approved execution of a definitive
agreement with the unsecured Creditors' Committee of href="chap11.hayes.html">Hayes
Microcomputers to provide for the purchase of Hayes in the
event the
Creditors Committee's Plan is confirmed by the Bankruptcy Court in
Atlanta.
On October 12, 1995, the United States Bankruptcy Court in
Atlanta approved certain bidding procedures submitted by the
Creditors' Committee and Diamond allowing for other qualified
bidders to participate in bidding provided certain guidelines are
followed. In addition, the court noted that any creditor could
submit an offer and separate plan of reorganization.
The Committee's Plan and Disclosure Statement, which currently
includes Diamond's purchase offer, will be heard before the Court at
a Disclosure Statement hearing scheduled for October 27, 1995.
Gary B. Filler, Diamond's Chief Financial Officer, noted that
"while we are encouraged by our progress to date, there can be no
assurance that we will prevail at confirmation."
Diamond Multimedia
Diamond Multimedia Systems, Inc. designs, manufactures and
markets high-performance multimedia solutions for the PC, PowerPC
and PCI Power Macintosh markets. Products include Stealth
multimedia accelerators, which incorporate graphics, video and MPEG
acceleration in a single subsystem, and Supra fax/modems. Diamond
also manufactures graphic accelerators, sound cards, audio/telephony
subsystems and multimedia upgrade kits. Headquartered in San Jose,
Calif., Diamond has marketing and technical support facilities in
Tokyo, Munich, France and Slough (U.K.).
Diamond's Supra Communication Division is located in Vancouver,
Wash. Diamond's products are sold through regional, national and
international distributors as well as to major computer retailers,
mass merchants and OEMs worldwide. Diamond's common stock is traded
on the Nasdaq Exchange under the symbol DIMD.
Diamond Multimedia Systems, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Nine Months
Ended Ended
(unaudited) (unaudited)
Sept. 30, Sept. 30,
1995 1994 1995 1994
Net Sales
$102,193 $44,625 $277,579 $142,725 Cost of Sales
77,640 32,026 209,254 101,791 Gross Profit
24,553 12,599 68,325 40,934 Research and development
2,318 1,099 6,562 2,472 Selling, general and
administrative 8,735 5,560 23,957
14,388 In process research and
development 38,710 - 38,710
-
Total
Operating Expenses 49,763 6,659 69,229 16,860
Income
(loss) from operations (25,210) 5,940 (904) 24,074
Interest income (expense), net 168 197 (1,299)
425
Other income (expense), net (50) - (50)
-
Income
(loss) before
provision for taxes (25,092) 6,137 (2,253)
24,499 Provision for income taxes 5,275 2,484 14,182
9,917
Net income (loss) ($30,367) $3,653 ($16,435)
$14,582
Common
shares and equivalents 28,014 20,900 24,949 20,900
Net income
per share ($1.08) $0.17 ($0.66) $0.70
Diamond Multimedia Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, Sept. 30,
1994 1995
(Unaudited)
ASSETS Current assets:
Cash and short-term investments $72,922 $20,821
Accounts receivable 20,462 64,279
Inventories 18,572 66,393
Deferred taxes and other current
assets 7,222 11,583
Total current assets 119,178 163,076
Fixed assets, net 1,676 8,156
Goodwill and other intangibles, net - 10,948
Total assets $120,854 $182,180
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities:
Notes payable, current $ 82,664 $ 541
Bank line of credit - 8,255
Trade accounts payable and other
accrued liabilities 30,488 67,505
Income taxes payable 310 1,539
Total current liabilities 113,462 77,840
Obligations under capital leases,
less current portion - 1,453
Notes payable, less current
portion - 1,777
Subordinated promissory notes
payable 34,167
- Deferred taxes - 1,879
Total liabilities 147,629 82,949
Mandatorily redeemable preferred
stock 29,174 - Stockholders' equity (deficit)
(55,949) 99,231
Total liabilities and
stockholders' equity (deficit) $120,854 $182,180 -0-
There are many ways to reach Diamond for sales support, technical
assistance, driver updates and general information:
The Main Phone number is 408-325-7000; Fax: 408-325-7070
Supra Communications Division Main Phone number: 360/604-1400;
fax: 360/604-1401;
Product Support: 408-325-7100; Supra: 360/604-1499;
Product Support Fax: 408-325-7171
24-Hour Fax On Demand Service: 1-800-380-0030; Supra: 503/967-0072
America OnLine (Keyword: DIAMOND)
CompuServe (GO DMNDONLINE or GO GRAPHBVEN) [75300,3673]
Internet Web site: http://www.diamondmm.com;" target=_new>http://www.diamondmm.com">http://www.diamondmm.com;
Supra: http://www.supra.com" target=_new>http://www.spra.com">http://www.supra.com
FTP site: ftp.diamondmm.com
For information on Diamond products: 1-800-468-5846; Supra:
1-800-727-8772
BBS numbers at 408-325-7080 (to14.4K) or 408-325-7175 (to 28.8K
baud)
For Supra BBS: 503/967-2444.
For more information on Diamond Multimedia at no cost, please call
(800) PRO-INFO.