Company to have total of 5,973,000 common shares outstanding upon
court approval
VAN NUYS, Calif.--Nov. 14, 1995--href="chap11.cherokee.html">Cherokee Inc.
(NASDAQ:CHKE) Tuesday announced that it had reached agreements in
principle to settle all remaining unsecured creditors' claims
arising from its 1994 Chapter 11 proceeding.
The settlements included Cherokee's agreement to an allowed
claim of approximately $1,239,000 on an outstanding $33,000,000
claim filed by a jeans importer. In accordance with Cherokee's 1994
plan of reorganization, unsecured creditors receive 60.5504 shares
of Cherokee common stock per $1,000 of allowed claim. Therefore, the
unsecured creditor will receive 75,000 shares of common stock upon
approval by the bankruptcy court.
At the time of confirmation of Cherokee's 1994 reorganization
plan Cherokee issued 1 million shares of its common stock to a
disbursing agent for the benefit of its unsecured creditors.
Cherokee will have resolved all claims of unsecured creditors by the
transfer of approximately 510,000 shares from the agent to the
creditors. The balance, approximately 490,000 shares, will be
returned to Cherokee for cancellation, which will reduce the number
of outstanding shares of Cherokee common stock from 6,462,667 shares
to approximately 5,973,000 shares.
The cancellation of the 490,000 shares will occur as soon as the
bankruptcy court approves the settlements. Cherokee believes the
settlements will be approved by the bankruptcy court within 30 days.
Cherokee, based in Van Nuys, is a marketer and licenser of the
Cherokee brand products. The company is pursuing retail direct
licensing agreements with major retailers in addition to exclusive
as well as non-exclusive wholesale and retail licensing operations
in the United States and abroad.
For more information on Cherokee Inc. via facsimile at no cost,
simply call 800/PRO-INFO and dial client code 058.
CONTACT: Cherokee Inc.,
Cary Cooper, 818/951-1002, ext. 200
or
The Financial Relations Board,
Daniel Saks, 310/442-0599 (general information)
Suzy Lynde, 312/266-7800 (analyst contact)
TEMPE, Ariz.,--Nov. 14, 1995--UDC
Homes, Inc.
announced today that it successfully consummated its previously
announced plan of reorganization and has emerged from Chapter 11
bankruptcy. As part of the plan, an affiliate of DMB Property
Ventures Limited Partnership, a Phoenix-based real estate investment
and development company, purchased 100% of the new equity of the
Company and $30 million in the Company's new subordinated notes for
$108 million.
Richard C. Kraemer, president and chief executive officer of
UDC, said, "We are delighted to have completed our reorganization
process quickly and look forward to the relationship with DMB. The
combination of UDC's operating expertise, a simplified financial
structure and the DMB relationship, provides UDC with strong
capabilities to enhance our homebuilding operations in Arizona and
California."
Drew M. Brown, president of DMB, said, "We are pleased with our
acquisition of the reorganized UDC and are confident that UDC will
continue as one of the leaders of the nation's homebuilding
industry."
A new board of directors of UDC took office today. The new
board consists of five members, Richard C. Kraemer, president and
chief executive officer, Drew M. Brown and Bennett Dorrance of DMB,
James McCabe of McCabe Capital Partners and Gadi Kaufmann of Robert
Charles Lesser & Co.
In conjunction with the reorganization, the Company entered into
new credit facilities of $150 million with a group of banks co-
agented by Bank One, Arizona and Bankers Trust Company. Additional
credit facilities of $56 million were also entered into with Bank of
America Arizona and Bank of America Illinois.
Under the terms of the plan of reorganization, the Company's
senior notes, subordinated notes and its common and preferred stock
were canceled. The Company's senior noteholders will receive $83
million in cash and $64.1 million in new senior notes; the Company's
subordinated noteholders will receive $5.9 million in new senior
notes and $2 million in new subordinated notes; and the holders of
the Company's prime preferred exchangeable stock will receive trust
certificates representing interests in $3 million in new
subordinated notes. Holders of other classes of the Company's
common and preferred stock will receive no consideration. In
general, the secured and unsecured claims against the Company will
be unimpaired. The Company also announced that its former directors
and officers have reached an agreement to settle with plaintiffs who
were purported representatives of a class of the former shareholders
of the Company in lawsuits against certain of the Company's current
and former officers and directors.
UDC Homes, Inc., headquartered in Tempe, Arizona, is a
homebuilder, concentrating in move-up family and retirement housing
with continuing operations in Arizona and California.
DMB, headquartered in Phoenix, Arizona, holds diversified
investments with a substantial real estate portfolio and real estate
operations.
CONTACT: Michael D. Singer,
Arthur Schmidt & Associates
212/953-5555
COLUMBUS, Ohio, Nov. 14, 1995 -- Drug Emporium,
Inc.
(Nasdaq-NNM: DEMP 3/4 announced today that it has entered into an
expanded secured credit agreement with Bank One of Columbus,
National City Bank and The Huntington National Bank. The company
also announced that its previously disclosed acquisition of href="chap11.fm.html">F&M [Distributors, Inc.]
stores in Detroit and in Baltimore has been approved by the
bankruptcy court.
David L. Kriegel, Drug Emporium's chairman and chief executive
officer, said that initial funds borrowed under the agreement will
be used to fund the purchase of the newly acquired stores and to pay
off borrowings under a previous line of credit with Bank One and
National City Bank that were due to expire in 1998.
He noted that the secured agreement consists of an interim
revolving credit facility of up to $75 million and a total credit
facility beginning April 1, 1996 of $60 million, consisting of a $45
million revolving credit line and $15 million term loan. The
expanded credit facility expires in 1999.
Mr. Kriegel commented, "We are pleased with the confidence the
leading Columbus banks have shown in our management and their strong
willingness to fund growth opportunity." He also noted that Drug
Emporium now has full operational control over the new stores, and
that systems upgrades will begin after Christmas and will be
completed during the first quarter.
Drug Emporium, Inc. is a national chain of 140 company-owned
stores, 117 operating under the Drug Emporium name and 23 currently
operating under the F&M name. The company also franchises an
additional 94 Drug Emporium stores. All 234 stores specialize in
discount-priced health and beauty aids, cosmetics, greeting cards
and prescription drugs.
/CONTACT: Timothy S. McCord, CFO, Drug Emporium, Inc.,
614-548-7080, ext. 207, or Investor Relations, 614-548-7080, ext.
451/
QUEBEC--Nov. 14, 1995--ORMICO EXPLORATION
(ME:OMX) DUFRESNOY (ME:DUF) Ormico Exploration Ltee and Dufresnoy
Industrial Minerals, Inc. (Dufresnoy) wish to announce that on
November 9, 1995 their subsidiary href="internat.canada.dolobec.html">Dolobec Inc. accepted a bid made
by Mazarin Mining Corporation Inc. (Mazarin) to purchase all its
assets.
In return, Mazarin will assume all amounts due to the preferred
creditor, i.e. the National Bank of Canada (approximately
$1,225,000) and will pay $150,000 to Dolobec. The $150,000 amount
will be used to pay off Dolobec's ordinary creditor under the terms
of a proposal to be submitted to and approved by creditors. In
addition, Mazarin's offer is subject to approval by its Board of
directors and dependent on an agreement being reached between
Mazarin and the National Bank for assumption of Dolobec's debts.
On May 13, 1995, Dolobec filed notice of intent to submit an
offer to its creditors under the terms of Section 50.4 of the
Bankruptcy and Insolvency Act. Since then Dolobec has attempted
through various parties to obtain the financing necessary for its
recovery and for payment of its debts. After negotiations, the most
generous offer obtained was that made by Mazarin. Once this
transaction has been completed, Dolobec will be released of all its
assets.
Substantial investments are required to enable Dolobec to
increase productivity and sales. Dufresnoy and Ormico were unable
to provide such sums, either directly or indirectly.
Under the circumstances, Ormico is therefore fully withdrawing
from Dolobec's activities and must completely redirect its affairs
by making use of its other assets, i.e. mining properties and short-
terms assets evaluated at approximately $939,110 as of September 30,
1995.
CONTACT: Ormico,
Claude St-Jacques, (418) 692-2678
DALLAS--Nov. 14, 1995--I.C.H.
Corporation (OTC:
ICHD), a Dallas-based insurance holding company, today announced its
financial results for the three months ended September 30, 1995.
For the quarter, the Company incurred a net loss on a consolidated
basis of $174.9 million, which largely reflected a goodwill
writedown and other non-cash accounting changes associated with the
previously announced and currently pending sale of the Company's
principal insurance subsidiaries. For the third quarter of 1994,
the Company recorded a net loss, before preferred dividend
requirements, of $0.1 million. On a per share basis, the Company
reported a net loss of $3.79 per common share in the 1995 third
quarter, versus a net loss of 8 cents per common share in the same
period of 1994.
The 1995 third quarter results included a $140.9 million
estimated loss on the sale of the Company's principal insurance
subsidiaries, which consisted of writedowns of goodwill, deferred
policy acquisition costs and the present value of future profits, as
well as an increase in deferred income tax asset valuation
allowances. In addition, the results included a $1.7 million loss
on the sales of two subsidiaries, Bankers Life Insurance Company of
New York and Integrity National Life Insurance, completed during the
quarter, $6.5 million in income tax charges pursuant to an agreed-
upon settlement with the IRS relative to audits of the Company's
current and former insurance subsidiaries for the years 1986 through
1989, and additional tax provisions totaling $19.5 million.
As previously reported, on October 10, 1995, the Company and
three of its noninsurance subsidiaries voluntarily filed petitions
for reorganization under Chapter 11 of the U.S. Bankruptcy Code in
Dallas, Texas, and requested expedited approval from the Bankruptcy
Court for the sale of its principal insurance subsidiaries,
Southwestern Life Insurance Company, Union Bankers Insurance Company
and Constitution Life Insurance Company to Shinnecock Holdings Inc.
for net cash proceeds of approximately $202 million. On October 20,
the Bankruptcy Court approved a Competitive Offer Procedure by which
interested parties may submit offers to compete with the offer of
Shinnecock Holdings. The Bankruptcy Court has a scheduled a hearing
beginning November 28, 1995, to consider such additional offers, if
any, and approval of the sales transaction.
The Company emphasized that none of its insurance subsidiaries
is involved in the bankruptcy filing and that they continue to
operate in the ordinary course of business, without any
extraordinary regulatory supervision. All of the Company's
insurance subsidiaries are well-capitalized, with more than
sufficient liquidity to fulfill all of their obligations to
policyholders. The Company continues to work closely with state
insurance regulatory authorities, who remain supportive of the
actions taken by ICH to protect policyholder interests.
For the nine months ended September 30, 1995, also largely
reflecting the third-quarter accounting charges, the Company
incurred a net loss of $186.7 million, compared to a net loss,
before preferred dividend requirements, of $34.8 million in the
first nine months of 1994. The loss in the 1994 first nine months
included a $46.4 pretax writedown of certain derivative
collateralized mortgage obligations. Pretax writedowns of such
investments during the first nine months of 1995 totaled $3.4
million, all of which were recorded in the 1995 third quarter.
On a per share basis, the Company incurred a net loss of $4.18
for the first nine months of 1995, versus a loss of 97 cents in the
comparable 1994 period.
Segment Results
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
------ ------ ------ ------
(In Millions)
Business to be retained (1):
Individual life insurance $ (1.1) $ 0.9 $ (1.3) $ 1.8
Individual health insurance 1.0 0.9 (0.4) 5.1
Group life and health (0.7) (1.4) (2.1)
(2.0)
Accumulation products (0.1) (0.2) (0.4) 0.0
------ ------ ------ ------
Total (0.9) 0.2 (4.2) 4.9
------ ------ ------ ------
Business to be divested (2):
Individual life insurance 4.7 8.6 22.1 17.0
Individual health insurance 1.2 3.8 (1.3) 7.2
Accumulation products 0.5 (3.2) (0.7) 1.9
------ ------ ------ ------
Total 6.4 9.2 20.1 26.1
------ ------ ------ ------
Corporate (1.4) 1.9 1.5 16.2
------ ------ ------ ------
Total pretax earnings before
realized investment gains (losses),
impairments of intangible assets,
amortization of excess cost,
interest expense and losses
on sales of subsidiaries 4.1 11.3 17.4 47.2
Realized investment gains (losses) (0.7) 3.7 3.9
(41.4)
Amortization of excess cost (0.6) (2.4) (1.9)
(7.2)
Corporate interest expenses (11.4) (11.5) (34.1)
(36.7)
Impairment of excess cost (75.8) (75.8)
Impairment of deferred policy
acquisition costs and present
value of future profits (26.6) (26.6)
Losses on sales of subsidiaries (1.7) (1.7)
------ ------ ------ ------
Total pretax earnings (loss) (112.7) 1.1 (118.8)
(38.1)
Income tax expense (credit) 62.2 1.2 67.9
(3.3)
------ ------ ------ ------
Net Loss $(174.9) $ (0.1) $(186.7)
$(34.8)
------ ------ ------ ------
(1) Represents business of companies to be retained (Bankers
Multiple
Line, Philadelphia American Life, Modern American Life and
Western Pioneer Life).
(2) Represents business divested in connection with the sales of
Bankers
Life of New York and Integrity National and expected to be divested
in connection with the proposed sales of Southwestern Life, Union
Bankers, Constitution Life and Marquette National Life.
The individual health insurance segment reported pre-tax
earnings of $2.2 million in the 1995 third quarter compared to
earnings of $4.7 million in the third quarter of 1994. The 1995
third quarter results were a significant improvement over the first
two quarters of 1995, during which the individual health insurance
segment reported aggregate losses of $3.9 million. The improvement
in the 1995 third quarter was attributable primarily to a decrease
in incurred benefits, as the ratio of individual health benefits to
earned premiums "loss ratio" declined to 70.0 percent compared to
79.2 percent during the first six months of 1995. As compared to
the 1994 third quarter, the ratio loss in the 1995 third quarter
increased from 67.5 percent to 70.0 percent. On a year-to-date
basis, profits of the individual health insurance segment declined
from $12.3 million in the first nine months of 1994 to a loss of
$1.7 million in the comparable 1995 period. The loss ratio on a
year-to-date basis increased to 76.2 percent as compared to 68.8
percent for the comparable period in 1994. The increases in the
loss ratios for both the three-month and the nine-month periods
reflects primarily the effects of delays encountered in obtaining
premium increases on the Company's Medicare supplement line of
business. The majority of the states in which the Company's
insurance subsidiaries write Medicare supplement business have now
approved premium increases.
The accumulation products segment reported a $0.4 million pre-
tax profit in the 1995 third quarter, as compared to a loss of $3.4
million for the comparable 1994 period. The profit in the 1995
third quarter represented a significant improvement over the $1.5
million loss incurred during the first six months of 1995.
Accumulation account balances of the Company's insurance
subsidiaries declined significantly during the 1995 third quarter
with the maturity and scheduled withdrawal of guaranteed investment
contracts (GIC's) totaling $348.3 million. The rate credited to
such GIC's had been indexed to the Standard & Poor's 500 Stock
Composite Average, and the profitability of this product had varied
widely from period to period.
The group insurance segment reported a pre-tax loss of $0.7
million in the 1995 third quarter as compared to a loss of $1.4
million for the same period in 1994. On a year-to-date basis, the
group segment incurred a loss of $2.1 million, as compared to a $2.0
million loss for the same period in 1994. The Company is continuing
its efforts to improve profitability in its group business through
downsizing and other steps, but actual expenses continue to exceed
margins provided in the pricing of the Company's products. The
Company is currently seeking to identify parties interested in
acquiring its group insurance operations.
The corporate segment, which includes investment income at the
parent company and earnings on surplus investments, incurred a $1.4
million pre-tax loss in the 1995 third quarter compared to earnings
of $1.9 million in the 1994 third quarter. The loss incurred in the
1995 third quarter resulted from an increase in professional fees
associated with the Company's recent restructuring efforts. On a
year-to-date basis, the corporate segment reported earnings of $1.5
million in 1995, as compared to earnings of $16.2 million in 1994.
In addition to the third-quarter restructuring-related costs,
earnings of the corporate segment were adversely affected in the
1995 second quarter by a $3.0 million litigation settlement. The
corporate segment recorded a non-recurring $8.7 million gain on the
termination of reinsurance arrangements with a former affiliate in
the second quarter of 1994.
New Business Sales
(Paid For New Premium)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
------ ------ ------ ------
(In Millions)
Business to be retained (1):
Individual life insurance $ 0.6 $ 2.5 $ 3.3 $ 9.4
Group life and health 0.3 0.9 0.8 7.6
Business to be divested (2):
Individual life insurance 2.4 3.7 21.0 15.5
Individual health insurance 8.8 8.8 27.1 29.3
Accumulation products 4.2 13.8 27.0 45.1
------ ------ ------ ------
$ 16.3 $ 29.7 $ 79.2 $106.9
------ ------ ------ ------
------ ------ ------ ------
(1) Represents business of companies to be retained (Bankers
Multiple
Line, Philadelphia American Life, Modern American Life and Western
Pioneer Life).
(2) Represents business divested in connection with the sales of
Bankers
Life of New York and Integrity National and expected to be
divested in connection with the proposed sales of Southwestern Life,
Union Bankers, Constitution Life and Marquette National Life.
Included in the individual life insurance business divested is
annuity production of Bankers Life of New York totaling $10.2
million and $4.0 million for the six months ended June 30, 1995
and 1994, respectively.
Withdrawals and Surrenders (1)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
----- ----- ----- -----
(In Millions)
Individual life insurance:
Retained companies (2) $ 1.3 $ 1.2 $ 3.2 $
4.0
Companies to be divested (3) 22.0 19.2 72.7
61.3
------ ------ ------ ------
Total $ 23.3 $ 20.4 $ 75.9 $ 65.3
------ ------ ------ ------
------ ------ ------ ------
Accumulation products:
Guaranteed investment contracts (3):
Scheduled maturities $348.3 $ 18.8 $363.1 $
68.8
Early withdrawals -- -- 6.2
--
Annuities of retained
companies (2) 0.9 0.6 2.0
1.7
Annuities of companies
to be divested (3) 18.5 2.6 91.9
28.6
------ ------ ------ ------
$367.7 $ 22.0 $463.2 $ 99.1
------ ------ ------ ------
------ ------ ------ ------
(1) Represents cash withdrawals of policyholder account balances and
surrenders of life insurance policies, including partial
surrenders, net of applicable surrender charges and penalties.
(2) Represents business of companies to be retained (Bankers
Multiple
Line, Philadelphia American Life Modern American Life and Western
Pioneer Life).
(3) Represents business divested in connection with sales of Bankers
Life of New York and Integrity National and expected to be divested
in connection with the proposed sales of Southwestern Life, Union
Bankers, Constitution Life and Marquette National Life.
In a separate matter, the Company reported it had been notified
that effective November 15, 1995, ICH's common and preferred stocks
will be struck from listing and registration on the American Stock
Exchange. The Company's common stock is currently trading over-the-
counter under the ticker "ICHD," and similar trading may develop
for ICH's preferred stock.
I.C.H. CORPORATION
(Debtor in Possession as of October 10, 1995)
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
ASSETS
September 30, December 31,
Investments: 1995 1994
------------ -----------
Fixed maturities:
Available for sale at fair value $ 133,494 $
376,403
Held to maturity at amortized cost 14,612
15,915
Held by subsidiaries to be sold at
amortized cost in 1995 and fair
value in 1994 1,157,651
1,262,464
Equity securities, at fair value 6,250
10,812
Mortgage loans on real estate,
at amortized cost 118,706
127,047
Real estate, at lower of cost or
fair value 48,704
57,068
Policy loans 154,422
172,108
Collateral loans 70,293
76,466
Investments in limited partnerships 34,977
42,027
Cash and short-term investments 208,523
229,522
Other invested assets 7,936
9,666
----------- -----------
Total investments 1,955,568
2,379,498
Due from reinsurers 193,070
236,272
Notes and accounts receivable and
uncollected premiums 5,055
6,978
Accrued investment income 25,717
31,825
Deferred policy acquisition costs 133,994
208,952
Present value of future profits of
acquired business 58,306
68,805
Deferred income tax asset 5,764
84,862
Excess cost of investments in subsidiaries
over net assets acquired,
net of accumulated amortization
80,500
Other assets 55,933
70,032
----------- -----------
$ 2,433,407 $ 3,167,724
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Insurance liabilities:
Future policy benefits and other
policy liabilities $ 767,862 $
894,100
Universal life and investment
contract liabilities 1,201,724
1,692,013
Notes payable:
Due within one year 59,806
59,802
Due after one year 334,122
330,592
Federal income taxes currently payable 60,921
39,628
Other liabilities 103,751
116,251
----------- -----------
2,528,186 3,132,386
----------- -----------
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock 199,997
199,997
Common stock 48,755
48,983
Additional paid-in capital 125,872
126,583
Net unrealized investment gains
(losses), net of deferred income taxes 874
(55,359)
Accumulated deficit (465,959)
(279,265)
----------- -----------
(90,461) 40,939
Notes receivable collateralized by
common stock (512)
(1,795)
Treasury stock, at cost (3,806)
(3,806)
----------- -----------
(94,779) 35,338
----------- -----------
$ 2,433,407 $ 3,167,724
----------- -----------
----------- -----------
I.C.H. CORPORATION
(Debtor in Possession as of October 10, 1995)
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
------ ------ ------ ------
Income:
Premium income and other
considerations $ 83,134 $ 103,001 $ 273,161 $
332,706
Net investment income 44,306 56,027 188,895
138,031
Realized investment gains
(losses) (703) 3,725 3,856
(41,376)
Equity in earnings of limited
partnerships 3,655 937 5,566
1,780
Other income (loss) (332) 3,266 5,650
14,591
--------- --------- --------- ---------
130,060 166,956 477,128 445,732
--------- --------- --------- ---------
Benefits, expenses and costs:
Policyholder benefits 80,780 103,711 322,129
293,980
Amortization of deferred
policy acquisition costs
and present value of future
profits 13,642 12,277 42,578
37,672
Other operating expenses 32,204 35,922 91,104
108,271
Amortization of excess cost 607 2,397 1,870
7,193
Interest expense 11,374 11,581 34,125
36,690
Impairment of excess cost 75,830 75,830
Impairment of deferred policy
acquisition costs and present
value of future profits 26,603 26,603
Net losses on sales of
subsidiaries 1,721 1,721
--------- --------- --------- ---------
242,761 165,888 595,960 483,806
--------- --------- --------- ---------
Operating earnings (loss)
before income taxes (112,701) 1,068 (118,832)
(38,074)
Income tax expense (credit) 62,167 1,213 67,862
(3,298)
--------- --------- --------- ---------
Net loss (174,868) (145) (186,694)
(34,776)
Less dividends on preferred
stock (3,500)
(11,325)
--------- --------- --------- ---------
Net loss applicable to common
stock $(174,868) $ (3,645) $(186,694) $
(46,101)
--------- --------- --------- ---------
--------- --------- --------- ---------
Weighted average shares
outstanding 47,087,117 47,261,563 47,141,707
47,654,310
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net loss per common share $ (3.79) $ (.08) $ (4.18) $
(.97)
--------- --------- --------- ---------
--------- --------- --------- ---------
I.C.H. CORPORATION
(Debtor in Possession as of October 10, 1995)
PARENT COMPANY ONLY BALANCE SHEET
September 30, 1995
(In Thousands)
(Unaudited)
Assets
Cash and short-term investments $ 44,390
Investment in subsidiaries to be sold,
at contract sales price subject to closing
adjustments 202,000
Investment in Facilities Management
Installation, Inc 9,429
Investment in insurance subsidiaries to be retained 92,957
Collateral loan (notes receivable) 27,000
Real estate 4,955
Federal income taxes recoverable 786
Tax indemnity recoverable 24,600
Other assets 5,387
---------
Total assets $ 411,504
---------
---------
Liabilities and Stockholders' Equity (Deficit)
Secured claims:
10% Debentures due 2001 subject to offset
by notes receivable $ 21,585
Mortgages payable secured by real property 324
Claims subject to compromise:
11-1/4% Senior Subordinated Notes due 1996 256,101
11-1/4% Senior Subordinated Notes due 2003 91,161
9-1/2% unsecured note payable due 1996 21,900
Accrued interest on notes payable 15,857
Other liabilities 18,577
Payable to Facilities Management Installation, Inc 7,262
Federal income taxes 73,516
---------
Total liabilities 506,283
Stockholders' equity (deficit) (94,779)
---------
Total liabilities and stockholders'
equity (deficit) $ 411,504
---------
---------
(a) Excludes $21,500,000 of 11-1/4% Senior Subordinated Notes held
by ICH's subsidiary, Constitution Life Insurance Company, which
Notes are expected to be distributed to ICH.
I.C.H. CORPORATION
(Debtor in Possession as of October 10, 1995)
RECONCILIATION OF PARENT COMPANY ONLY BALANCE SHEET
TO AMOUNTS REFLECTED IN CHAPTER 11 PETITION
September 30, 1995
(In Thousands)
(Unaudited)
Assets per Chapter 11 petition $ 405,989
Items in Chapter 11 petition not included in
financial statements:
Value of profits interest in federal savings bank
(18,000)
Items in financial statements not included in petition:
Estimated adjustment in sales price of subsidiaries
(11,000)
Deferred issuance costs of subordinated debt 433
Differences in carrying value of retained subsidiaries 34,277
Other miscellaneous
(195)
---------
Assets per financial statements $ 411,504
---------
---------
Liabilities per Chapter 11 petition $ 510,000
Items in Chapter 11 petition not included in financial
statements:
11-1/4% Senior Subordinated Notes due 1996 held by
Constitution
(21,500)
Erroneous "double counting" of notes payable
(3,185)
Items in financial statements not included in petition:
Discounting of 10% Debentures due 2001 for reporting
purposes
(8,415)
Additional federal income tax liability 12,745
State and local tax accruals not yet due 2,310
Liability for executory contracts not yet due 5,129
Liabilities for post retirement life and health benefits 4,903
Accrued prepetition interest for month of September 3,883
Accrual of professional fees for month of September 3,014
Other miscellaneous
(2,601)
---------
Liabilities per financial statements $ 506,283
---------
---------