FORT LAUDERDALE, Fla., Nov. 28, 1995 -- Sunbeam
Corporation (NYSE: SOC) announced today that its subsidiary, Sunbeam
Products, Inc., has acquired the principal operating assets of the
outdoor and indoor furniture businesses of href="chap11.lineal.html">The Lineal Group, Inc.
(d/b/a Samsonite Furniture Company) and also has entered into a long
term license agreement with Samsonite Corporation (Nasdaq: SAMC) to
market certain outdoor and indoor furniture lines under the
Samsonite(R) brand name in the United States. Lineal was a
Samsonite(R) licensee on many of the furniture product lines
acquired by Sunbeam today.
The purchase of Lineal's inventory, equipment, intellectual
property and certain other assets was made in connection with a
Chapter 11 filing by Lineal. The acquired business had sales of
approximately $70 million for its fiscal year ended July 31, 1995,
prior to Lineal's September 1, 1995 bankruptcy filing. The purchase
price for the assets acquired was $11.9 million.
Commenting on the acquisition, Jim Clegg, President, North
America, for Sunbeam stated: "This is an excellent strategic
purchase for our Company, allowing us immediate access to new
distribution channels and a new customer base, counterseasonal
diversification of our furniture product lines and an outstanding
brand name in Samsonite(R). Lineal lost sales and distribution
during the bankruptcy, but we expect to be able to restore a portion
of the lost sales in the first year and thereafter to grow the
business significantly."
Roger Schipke, Sunbeam's Chairman and CEO, added: "This
acquisition underscores Sunbeam's continuing commitment to growth
through acquisitions as well as through internal growth. We
continue to look for niche acquisitions such as Lineal, which afford
opportunities for significant growth at relatively low risk. The
Company acquired the Counselor(R)-Borg(R) scale business from Newell
in late 1993 and also acquired the outdoor resin furniture business
from Rubbermaid in 1994. We feel that the Lineal product lines and
the Samsonite(R) brand make this a comparable strategic
acquisition."
The business acquired by Sunbeam today includes a casual living
division, which markets high end patio & garden furniture primarily
through specialty stores under the Samsonite(R), Halcyon(R),
Molla(R) and Lineal Design(R) brands; a commercial/hospitality
division, which sells folding and stacking tubular steel, aluminum
and wood commercial furniture primarily under the Samsonite(R)
brand; and a mass market division, which sells folding tables and
chairs, step stools and bar stools, under the Samsonite(R) brand.
This acquisition complements Sunbeam's multichannel, multi-brand
strategy for its furniture business.
Sunbeam is a leading producer of outdoor casual furniture,
offering a full line of resin, folding aluminum, style aluminum,
steel, wood and wrought iron furniture products. Sunbeam recently
expanded its furniture offerings to include indoor casual dining
sets and bar stools. The Lineal acquisition will add wrought
aluminum lines and high-end aluminum style and steel furniture for
outdoor use, as well as expanding Sunbeam's indoor and outdoor
furniture offerings to include folding and stacking tables and
chairs, commercial lines, step stools and additional varieties of
bar stools.
Sunbeam Corporation is a leading consumer products company that
designs, manufactures and markets, nationally and internationally, a
diverse portfolio of outdoor and household brand name products. The
Company's Sunbeam(R) and Oster(R) brands have been household names
for generations, both domestically and abroad, and the Company is a
market leader in many of its product categories.
/CONTACT: James J. Clegg, President, North America, Sunbeam
Corporation, 708-995-8900, or John DeSimone, Manager, Investor
Relations, Sunbeam Corporation, 954-767-2100/
WILMINGTON, Del., Nov. 28, 1995 -- href="chap11.columbia.html">The Columbia Gas
System, Inc., (NYSE: CG) and Columbia Gas Transmission Corp., its
principal pipeline subsidiary, are emerging from Chapter 11 today,
prepared to begin what Chairman and CEO Oliver G. Richard III
described as the "systematic transformation of Columbia into a
bolder, aggressive and innovative energy company."
As provided in separate reorganization plans that were confirmed
by the U.S. Bankruptcy Court for the District of Delaware on
November 15, The Columbia Gas System, Inc., has begun distributing
$3.6 billion to its creditors and Columbia Transmission has begun
distributing $3.9 billion to its creditors, including $2.3 billion
to the Parent Corporation. The two companies have been operating as
debtors-in- possession since filing for Chapter 11 protection July
31, 1991.
"The payment of our creditors marks the end of the bankruptcy
and the beginning of a new era for Columbia," Richard said. "We
intend to leverage Columbia's strong physical and intellectual
resources, old and new, and remake the company into one of the
leading marketers of energy and energy services in the nation ... a
company that provides customers with real choices and one-stop-
shopping for all of their energy needs."
Richard predicted that, following emergence, Columbia would be a
"dramatically different company; one that is more flexible, more
competitive and poised to aggressively pursue strategic initiatives
that will increase earnings and add value for its shareholders. We
are already searching out productivity gains in all of our business
units and identifying ways to reduce operating costs."
"Unlike many companies emerging from Chapter 11, Columbia is in
a strong financial position," Richard said. "We are prepared to
commit the resources and capital investments needed to strengthen,
expand and improve the earning capability of our two most important
channels to our customers: our interstate pipeline and distribution
highways. At the same time, we plan to systematically seek out and
capitalize on significant growth opportunities in non-regulated
businesses by both independently expanding our existing non-utility
operations and through carefully thought out strategic alliances."
The Parent Corporation is distributing approximately $3.4
billion in full payment of the debt the Corporation owed financial
institutions and other investors prior to filing for Chapter 11,
including approximately $1.1 billion of interest on that debt.
Payments for tax, administrative and other miscellaneous claims
total approximately $200 million. This distribution to creditors is
funded by approximately $1 billion in cash, a portion of which is
derived from new bank debt; about $2 billion in new debt securities
with maturities that range from five to 30 years; and about $200
million in preferred stock and $200 million in dividend enhanced
convertible stock. The new debt securities have an average interest
rate of 7.03 percent, one of the lowest debt costs in the gas
industry.
In addition to the $2.3 billion being paid to the Parent
Corporation, Columbia Transmission is distributing $1.066 billion to
resolve claims filed by natural gas producers after their gas
purchase contracts were rejected. These payments are to those
producers who signed settlement agreements with Columbia
Transmission or accepted claims' values included in the confirmed
reorganization plan. Other producers' claims will be paid when
settlements are reached or their claims are finally litigated.
Columbia Transmission is also distributing about $160 million to
resolve claims filed by its customer companies and approximately
$240 million for tax, trade, administrative and other miscellaneous
claims. As provided in the reorganization plan, the Parent
Corporation is receiving restructured secured debt and restructured
equity to satisfy its claims. Other claims being paid by Columbia
Transmission today are funded primarily by approximately $1.4
billion in cash the company accumulated while operating under
Chapter 11.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas systems. Its 17 operating subsidiaries are engaged in
the exploration, production, purchase, marketing, storage,
transmission and distribution of natural gas as well as other energy
operations including electric power generation.
/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, all of Columbia Gas/
DALLAS, Nov. 28, 1995 -- Centex Corporation
commented
today on the suspension of a contract to build Harrah's Jazzville
Casino in New Orleans as a result of last week's bankruptcy filing
by the Harrah's Jazz Company
partnership. Centex Landis
Construction Co., Inc., the New Orleans-based subsidiary of the
Centex Construction Group, has been the general contractor under a
$116 million contract for the project, which is about 60 percent
complete.
At the time of the bankruptcy filing, Centex Landis and its
subcontractors and suppliers were owed in the range of $35 million,
representing approximately two months of unpaid construction costs.
Centex said it believes that any exposure Centex Landis may have as
a result of the Harrah's Jazz filing will be substantially less than
those costs. Centex also indicated it is too early to determine if
the filing will ultimately require Centex to take a charge against
earnings.
Centex indicated it believes that Harrah's Entertainment, Inc.,
the parent company of a subsidiary that is a partner in Harrah's
Jazz Company, will ultimately be unable to avoid substantial
liability for construction-related claims against Harrah's Jazz.
Centex said Centex Landis intends to aggressively pursue all legal
remedies available to ensure recovery of payments due under the
contract.
/CONTACT: Laurence E. Hirsch, chairman and chief executive, or
Sheila E. Gallagher, vice president-corporate communications, both
of
Centex, 214-559-6500/
NEW YORK, Nov. 28, 1995 -- href="chap11.columbia.html">Columbia Gas System, Inc.'s
(Columbia) $2,000,000,000 senior debt securities, series A through G
are rated 'BBB' by Fitch. In addition, the company's $200,000,000
preferred stock is rated 'BBB-'. Columbia's $200,000,000 dividend
enhanced convertible stock, a form of preferred stock ranking pari
passu with the new preferred stock is also rated 'BBB-'. The
securities have been issued to borrowers in combination with cash
upon Columbia's emergence from bankruptcy today. The ratings
replace preliminary ratings assigned by Fitch on Oct. 13, 1995.
Ratings are withdrawn on Columbia's 'DDD' debentures, which have
been canceled upon issuance of the new securities. The credit trend
is stable.
The ratings reflect expectations that Columbia emerges from
bankruptcy with a capital structure, earnings capacity, and the
financial flexibility to successfully compete in an unbundled and
increasingly competitive natural gas industry. Core interstate
transmission and local distribution segments are operationally
sound, provide low-cost service, and should generate moderate growth
in earnings and cash flow. Performance of nonregulated operations,
including oil and natural gas exploration and production and energy
marketing, is far less predictable. However, opportunities for
success will be vastly improved with Columbia's healthier post-
bankruptcy credit profile and the easing of current financial
limits.
The bankruptcy plan resolved major regulatory and legal
uncertainties. Columbia is adopting disciplined business unit
strategies. New senior management is poised to provide aggressive
leadership and is committed to developing a more agile, market
focused organization. While some of the near-term credit measures
projected by Columbia in its April 1995 bankruptcy plan disclosure
statement appear marginal for investment grade status, Fitch
believes that these projections are generally conservative.
Moreover, a gradual improvement is very likely.
/CONTACT: Ralph Pellecchia, 212-908-0586, or Bill Stellenwerf,
212-908-0558, both of Fitch/
TORONTO--Nov. 28, 1995--href="internat.canada.trenton.html">TRENTON INDUSTRIES INC
(TSE:TII) The court has adjourned the motions for approval of the
Proposals under the Bankruptcy and Insolvency Act of Trenton
Industries Inc. and its two subsidiaries, Trenton Machine Tool Inc.
and SailRail Enterprises Limited.
The motions for court approval will now be heard on November 30,
1995. The adjournment was sought by the Trenton Group in order to
provide it with an additional period of time in which to finalize
financing for its obligations under the Proposals and to support a
return to normal business operations.
CONTACT: Trenton Industries Inc.,
Dean Antonakes, 613/394-4861
CENTURY CITY, Calif., Nov. 28, 1995 -- href="chap11.prism.html">Prism Entertainment
Corporation (AMEX: PRZ) announced that it will file a
petition for
reorganization under Chapter 11 of the Bankruptcy Code. In this
connection, the Company expects to incur a substantial loss for the
third quarter ended October 31, 1995 as a result of a decrease in
sale of video cassettes for the U.S. rental market. As a result,
Prism has been experiencing a significant working capital shortfall
as it has been unable to further utilize its line of credit from its
lender. The Company's ability to use the credit line is based on
the availability of accounts receivable arising from, among other
things, sale of video products. Accordingly, the Company's existing
accounts receivable is insufficient to allow further borrowing. The
Company is presently engaged in discussions with its lender
regarding the use of cash collateral during the pendency of the
bankruptcy proceeding.
Turner Home Entertainment will continue to distribute the
Company's films into the domestic video market. The three films to
be distributed in the Company's fourth quarter include a sequel to
its best selling franchise, "Night Eyes 4." However, the company
does not have sufficient capital to fully complete its calendar 1996
production and release schedule, nor to satisfy, in a timely
fashion, its monetary obligations to certain of its larger
creditors.
The Company does not satisfy all of the guidelines for the
continued listing of the Company's common stock on the American
Stock Exchange. Accordingly, there can be no assurances that the
Company's stock will continue to be listed. The American Stock
Exchange has advised the Company that the existing trading halt will
not be lifted until full disclosure of the Company's financial
matters has been made and the Exchange has reviewed the Company's
continued listing eligibility.
The Company also announced the resignations from its Board of
Directors of Ron Berger, Wirt Walker and Mishal Al Sabah. Peter
Graham and Barry Collier will continue as directors, and Mr. Collier
will continue to serve as President, Chief Executive Officer and
Chief Operating Officer of Company. The Company has also retained
an investment banking firm to find a strategic partner and/or
acquisition.
/CONTACT: David L. Ficksman for Prism Entertainment, 213-688-3698/