SECAUCUS, NEW JERSEY--Oct. 31, 1995--href="chap11.jamesway.html">Jamesway
Corporation yesterday submitted to the U.S. Bankruptcy Court
for the
Southern District of New York a contract it has signed with a joint-
venture of three firms for the liquidation of its inventory. The
contract calls for the firms -- Jubilee Limited Partnership, Alco
Capital Group, Inc., and Nassi Bernstein Company, Inc. -- to make a
cash payment to Jamesway in an amount equal to 51% of the retail
value of the company's inventory. A hearing for final approval of
the contract has been set for November 3.
Under the agreement, Jamesway has represented that the retail
value of its inventory will not be less than $207 million.
Michael J. Sherman, Executive Vice President - Special Projects,
said, "We are very pleased with the contract. A guaranteed 51%
return on the value of our inventory is excellent given the current
industry climate and the number of retailers under Chapter 11."
The company expects that going-out-of-business sales will begin
immediately following court approval of the contract. All 90
Jamesway stores are currently open for business.
CONTACT: Jim Fingeroth/Jason Lynch,
Kekst and Company
212/593-2655
PHILADELPHIA, Oct. 30, 1995--Strawbridge &
Clothier
(Nasdaq: STRWA) announced today that its Board of Directors has
engaged the Peter J. Solomon Co. as financial advisor to explore
strategic alternatives for the Company, including possible merger,
acquisitions or sales.
The Company also announced that due to continued softening in
the retail market, it expects to report a loss for the Third Quarter
ending October 28, 1995.
Management said they were cautiously optimistic with respect to
prospects for the Fourth Quarter, which, with the holiday season, is
the Company's most important quarter.
/CONTACT: F.R. Strawbridge III, 215-629-6456, or P.S. Strawbridge,
215-629-6607, both of Strawbridge & Clothier/
GOSHEN, Ind., Oct. 31, 1995--Cobra
Industries, Inc.
(NYSE: COI) today announced that Steven J. Kumble has resigned from
the company's Board of Directors effective immediately. This
resignation is subsequent to the Board's approval of the company
filing a voluntary petition under Chapter 11 of the United States
Bankruptcy Code on October 27, 1995.
Mr. Kumble is the Chairman of the Board and Director of
Lincolnshire Management, Inc., a New York City-based merchant
banking firm. He had served as the Vice Chairman of Cobra's Board
since 1993.
Cobra Industries, Inc., headquartered in Goshen, Indiana, is one
of North America's largest recreational vehicle manufacturers.
Cobra manufactures conventional trailers, park trailers, folding
camper trailers and van conversions. The company has manufacturing
and distribution facilities in Indiana, California, Texas and
Georgia.
/CONTACT: James J. Roop or Robert G. Berick of Watt, Roop & Co.,
216-566-7019/
GOSHEN, Ind., Oct. 31, 1995--Cobra
Industries, Inc.
(NYSE: COI) today announced that Juergen Boessler has resigned from
the company's Board of Directors effective immediately. This
resignation is subsequent to the Board's approval of the company
filing a voluntary petition under Chapter 11 of the United States
Bankruptcy Code on October 27, 1995.
Mr. Boessler will remain as Cobra's Executive Vice President and
Secretary. He had served as the Executive Vice President and
Secretary of Cobra's Board since 1993.
Cobra Industries, Inc., headquartered in Goshen, Indiana, is one
of North America's largest recreational vehicle manufacturers.
Cobra manufactures conventional trailers, park trailers, folding
camper trailers and van conversions. The company has manufacturing
and distribution facilities in Indiana, California, Texas and
Georgia.
/CONTACT: James J. Roop or Robert G. Berick of Watt, Roop & Co.,
216-566-7019/
MINNEAPOLIS--Oct. 31, 1995--Racotek Inc.
(Nasdaq: RACO) a mobile data communication services company, today
announced that the company has agreed to acquire the assets of
Business Partner Solutions Inc.
(BPSI) of Chicago.
Racotek plans to acquire all of BPSI's software product lines
which are targeted at users of UNIX and IBM AS/400 systems. The
acquisition is subject to approval by BPSI's creditors and Judge
John H. Squires of the United States Bankruptcy Court for the
Northern District of Illinois located in Chicago. BPSI filed for
protection under Chapter 11 of the U.S. Bankruptcy Code on Mar. 31,
1995.
Minneapolis-based Racotek provides mobile networking software to
extend corporate information systems to people in the field.
Racotek's product, KeyWare, serves as an interface between a
customer's information systems and the components of a wireless
communications system, including existing application environments,
multiple wireless networks and most portable computers. In
addition, the company provides professional services, systems
integration, training and end-to-end wireless system support.
The reorganized company, known in the plan as New Leslie Fay, Sassco The Sassco Fashions business will either be sold to a private In connection with the Sale, the Company announced today
EDITORS NOTE: Racotek and KeyWare are trademarks of Racotek Inc.
Other trademarks used herein belong to other companies.
Patrick J. Milan, 612/893-3919 or
href="mailto:74171.1357@Compuserve.com">74171.1357@Compuserve.com
LESLIE FAY FILES PLAN OF REORGANIZATION; Company Will
Emerge From Chapter 11 Rebuilt Around Core Businesses; Sassco Will
Be Sold Or Spun Off To Creditors And Management
NEW YORK--October 31, 1995--The
Leslie Fay
Companies, Inc. today filed a plan of reorganization with the
U.S.
Bankruptcy Court for the Southern District of New York. The
fundamental elements of the plan were developed with the support of
Leslie Fay's Creditors' Committee. It provides for the company to
sell or spin off its Sassco Fashions business and emerge from
chapter 11 restructured around its Leslie Fay Dress, Leslie Fay
Sportswear, Outlander and Castleberry businesses.
Leslie Fay plans to file a disclosure statement with the court
by November 15, 1995, and to begin the process of soliciting
creditor approval of the plan shortly thereafter. The company
expects to consummate the plan and emerge from chapter 11 in early
1996.
Highlights of the plan of reorganization are as follows:
New Leslie Fay
will continue to serve its long-standing department store customers
with its Leslie Fay Dress, Leslie Fay Sportswear, Outlander and
Castleberry product lines. The company will also continue to own
the HUE trademark. Leslie Fay is currently engaged in discussions
to dispose of its retail store division.
New Leslie Fay will be 100% owned by creditors and management.
Leslie Fay's current equity will be extinguished.
New Leslie Fay will be led by John J. Pomerantz, Chairman and
Chief Executive Officer. Other senior executives of the streamlined
company will include John Ward, President; Cate Bandel, Executive
Vice President; Warren Wishart, Senior Vice President and Chief
Financial Officer; and Dominick Felicetti, Vice President of
Manufacturing. New Leslie Fay will continue to be based in New York
City and Wilkes-Barre, Pennsylvania. The company is expected to
have more than $125 million in annual revenues after it emerges from
chapter 11.
investor group led by its senior management or spun off to such
management and Leslie Fay's creditors. Sassco manufactures women's
suits, dresses and sportswear under the Kasper for A.S.L. and
Albert Nipon labels. On a standalone basis, Sassco is expected to
have more than $270 million in annual revenues.
Under a sale agreement that would be entered into if a purchase
of Sassco is to be consummated, Leslie Fay would receive $226
million in cash, certain contingent payment rights and the right of
its creditors to invest in up to 12 percent of Sassco's equity. The
contingent payment rights would enable the creditors to benefit in
the event that Sassco is a party to a transaction and is valued at
more than $300 million within 18 months of the effective date of the
plan of reorganization.
If the proposed sale is not consummated by January 31, 1996,
Leslie Fay would receive 70 percent of the new equity from a spin-
off of Sassco and $125 million in cash, which Sassco would borrow
from lenders under a new credit agreement. Members of Sassco's
management would receive the other 30 percent of the new equity.
The consideration from a sale or spin-off of Sassco would be
distributed to Leslie Fay's creditors pursuant to its reorganization
plan.
John J. Pomerantz, chairman and chief executive officer of
Leslie Fay, said, "We are very pleased to have successfully
developed a plan of reorganization and appreciate the support of our
Creditors' Committee throughout this long and complicated process.
We look forward to concluding the company's chapter 11 case within
several months and emerging as a viable competitor in the women's
apparel industry."
"On behalf of everyone at Leslie Fay, I cannot emphasize enough
how appreciative we are of the strong support of our customers and
suppliers," Mr. Pomerantz said. "I am confident that their
continued faith in our company will be fully rewarded in the years
ahead as we return to focusing all of our attention on serving the
needs of our customers."
Founded in 1947, The Leslie Fay Companies, Inc., is one of the
nation's leading manufacturers of women's apparel, including
dresses, suits and sportswear. Its brand names include Leslie Fay,
Albert Nipon, Kasper for A.S.L., Castleberry, Outlander, and HUE.
CONTACT: James Fingeroth,
Michael Freitag,
Kekst and Company
(212) 593-2655
ELSINORE FILES FOR CHAPTER 11 PROTECTION
Flagship Property, Four Queens, Remains Fully Operational
LAS VEGAS, Oct. 31, 1995--href="chap11.elsinore.html">Elsinore Corporation (AMEX:
ELS; Pacific) disclosed that it has filed for Chapter 11 protection
under the U.S. Bankruptcy Code for itself and certain subsidiaries.
The filing is a result of the non-payment of interest in the amount
of $3,562,500 on $57 million principle amount of First Mortgage
Notes and $150,000 on $3 million of secured notes due October 1,
1995. The Company has been unable to reach a negotiated compromise
during the thirty-day grace period provided for under the Company's
debt instruments, which expires effective November 1, 1995.
"Despite previous attempts, as disclosed earlier, we have been
unable to reach a consensual restructuring with noteholders," said
Thomas E. Martin, president and chief executive officer for
Elsinore. "By filing for Chapter 11 protection, we believe that we
can achieve an optimal solution regarding debt obligations while
maintaining the integrity and viability of our flagship property,
the Four Queens Hotel and Casino in downtown Las Vegas.
"While the well publicized construction and the related
disruption in downtown Vegas has had a negative impact on the Four
Queens, this Chapter 11 filing should have no effect on patrons of
the Four Queens Hotel and Casino. The Four Queens has been a vital,
dynamic Las Vegas property for more than 30 years and will continue
to contribute to the revitalization of downtown and the growth of
Las Vegas overall," Martin stated.
Martin observed that the suspension of Elsinore's involvement in
the Spotlight 29 Casino near Palm Springs and the initial lack of
return from its management of the 7 Cedars Casino in Washington
state also have contributed to the Company's inability to meet its
current debt service obligations.
At The Four Queens - It's Business As Usual
"The Four Queens is open for business as usual," said Martin.
"In fact, as part of our long-term strategic planning, we've
upgraded the physical property, increased slot capacity and
intensified our marketing efforts.
"Our goal over the last 24 months has been to set the stage for
maximizing operating cash flow over the longer term with initial
emphasis on preparing for the unveiling of the Fremont Street
Experience. We believe we are very close to accomplishing that
goal," said Martin.
Poised To Benefit From Fremont Street Experience
"The issue is timing," said Martin. "The Four Queens is
poised
to benefit from the Fremont Street Experience, scheduled to open in
four weeks on December 1, 1995."
During the last two years the Company has achieved significant
improvements in the cost structure of the Four Queens' operations
through staff reductions, personnel realignment and other measures.
Other operating improvements include significant renovation of the
property, upgrading of slot casino operations through an increase of
the number of and improvement in the mix of slot machines, the
reconfiguring of the casino slot layout, more efficient use of
player tracking databases and focused marketing efforts.
"However," said Martin, "the positive impact of these efforts
has been overshadowed to date by the dramatic negative impact on
cash flow from Fremont Street Experience construction.
"When the Fremont Street Experience opens to the public, we
expect a significant increase in traffic to the Four Queens
positively affecting gaming hotel and restaurant activities. We
expect the benefits derived from a revitalized downtown Las Vegas
combined with our cost containment efforts to produce improved cash
flows in both the near and long term," Martin concluded.
Martin noted that the Company was unable to speculate as to the
effect of the Chapter 11 filing on existing shareholders. However,
he stated that the American Stock Exchange was conducting an
evaluation of the Company with respect to its continued listing on
the Exchange and no assurance could be given that the listing on the
Exchange would be continued.
/CONTACT: Liz Gamble, Sean Gamble or Jamie McKee of Dunn Reber
Glenn Marz, 702-256-0065/
PACIFIC INTERNATIONAL SERVICES CORP. (PISC)
TRANSACTION PROCEEDS
HONOLULU, Hawaii, Oct. 31, 1995--href="chap11.pacific.html">Pacific International
Services Corp. (the "Company") previously announced that it had
entered into an agreement with Dollar Systems, Inc. ("Dollar"), to
sell (the "Sale") its vehicle rental operations, which includes an
exclusive license to operate as a Dollar Rent A Car licensee in the
State of Hawaii. The Sale is subject to various conditions which
must be satisfied by the time of the closing which is currently
expected to occur on or about November 30, 1995. Upon closing,
Dollar Systems will acquire substantially all of the assets of the
company's rental car operations and will assume substantially all of
the company's trade debt and certain other liabilities not retained
by PISC. As previously announced, Dollar Systems expects to honor
all commitments to the Company's customers, and to retain most or
all of the employees of PISC's Dollar Rent A Car operations in
Hawaii, subject to Dollar's customary employment practices.
that it
has commenced an Exchange Offer (the "Exchange Offer") for
$5,250,000 in principal amount of the Company's 10% Convertible
Subordinated Debentures due September 1, 2007 (the "Old
Debentures").
Under the Exchange Offer, the Company will invite the holders of
its Old Debentures to tender $1.00 in face amount of Old Debentures
for (i) $0.50 in cash (the "Cash Payment"); (ii) 0.769505 shares of
the Company's common stock; and (iii) a pro rata share of new
debentures (the "New Debentures") of the Company in an aggregate
principal amount equal to $1,050,000 less the face amount of any Old
Debentures not tendered and less the original principal amount, if
any, of a new promissory note which may be issued to Dollar as part
of the Sale (the "Dollar Note"), upon and subject to the terms and
conditions set forth in the Exchange Offer and in the related Letter
of Transmittal.
Accrued interest will not be paid on the Old Debentures tendered
and accepted for exchange. The Company will not accept for exchange
less than $4,988,000 in face amount of outstanding Old Debentures
and will accept up to 100% of the outstanding Old Debentures. The
Exchange Offer, prorations period and withdrawal rights will expire
at midnight New York City time on November 29, 1995, unless the
Exchange Offer is extended by the Company.
The Company has been advised that Scott H. Lang is the only
director of the Company that owns any Old Debentures. Mr. Lang owns
$73,000 in principal amount of Old Debentures and has indicated to
the Company that he will tender the full amount of such Old
Debentures.
Georgeson & Company Inc. will serve as Information Agent for the
Exchange Offer, and First Fidelity Bank, N.A. will serve as
Depositary.
In order to expedite closing of the proposed Sale and Exchange
Offer in the event that the minimum tender of at least 95% of the
face amount of Debentures is not received, the Company is also
soliciting (the "Solicitation") from the holders of its Old
Debentures, as of the close of business on October 27, 1995,
acceptances (the "Plan Acceptances") of a prepackaged plan of
reorganization (the "Plan") of the Company pursuant to which the Old
Debentures would be exchanged for consideration described below.
Such Solicitation of acceptances for the Plan is being made, and may
only be made, pursuant to the Solicitation and Disclosure Statement
For Prepackaged Plan of Reorganization issued by the Company dated
October 31, 1995.
If the Exchange Offer is not consummated but the requisite Plan
Acceptances are obtained, the Company currently intends to commence
promptly a case under Chapter 11 of title 11 of the United States
Code and rules and regulations promulgated thereunder and to use
such Plan Acceptances to obtain timely confirmation of the Plan by a
United States Bankruptcy Court of competent jurisdiction (the
"Bankruptcy Court").
Under the prepackaged plan of reorganization, the Company would,
with the court's approval, maintain its ordinary course of business,
including normal payment of its trade creditors. If the Plan is
confirmed by the Bankruptcy Court, each holder of the Old Debentures
(whether or not such holder voted to accept the Plan) will receive
for each $1.00 of face amount of Old Debentures (I) its pro rata
portion of the cash proceed of the Sale plus certain allowed
priority claims, (II) .769505 shares of the Company's common stock
and (III) its pro rate portion of the New Debentures less the
original principal amount of the Dollar Note. The Company
anticipates that the consideration received by a bolder of an Old
Debenture through the Plan would be less than the consideration
received a holder of an Old Debenture under the Exchange Offer.
/CONTACT: Alan Robin of PISC, 808-926-4242/