ARDMORE, Okla., Dec. 20, 1995 -- Noble
Affiliates, Inc.
(NYSE: NBL) today announced it will recognize a non-cash, pre-tax
charge of $59.5 million, resulting in an after-tax charge of $38.7
million, or 77 cents per share, in 1995 with the adoption of the
Statement of Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of."
The company also announced that on November 29, 1995 its
subsidiary Samedan Oil Corporation, received $48.9 million from the
settlement of a bankruptcy claim against href="chap11.columbia.html">Columbia Gas Transmission
Corporation, a unit of Columbia Gas System Inc. The company will
record pre-tax income from the settlement of $39.1 million. The
after-tax income will be $25.4 million, or 51 cents per share.
Robert Kelley, chairman, president and chief executive officer
of Noble Affiliates, said, "All companies that report their
financial results on the successful efforts method of accounting are
required to adopt SFAS No. 121 no later than the first quarter of
1996. Adoption of the standard has no impact on our reserve base or
cash flow. Effective January 1, 1996, the company's depreciation,
depletion, and amortization rate per unit of production will be
reduced as a result of the writedown."
Noble Affiliates, Inc. is an independent energy company with
exploration and production operations throughout major basins in the
United States, including the Gulf of Mexico, as well as
international operations primarily in Canada, Tunisia and Equatorial
Guinea. Its common stock is listed on the NYSE under the symbol
"NBL."
/CONTACT: Bill Dickson of Noble Affiliates, 405-223-4110/
MOORESTOWN, N.J.--December 20, 1995--Holly
Products, Inc. (NASDAQ:HOPR, HOPRW, HOPRP:BSE:HOP, HOPP) majority
stockholder of Country World Casinos,
Inc., today announced that it
has obtained, on behalf of Country World, a standby loan commitment
for the permanent financing of $27.35 million, subject to certain
terms and conditions, formal documentation and approval of the
bankruptcy court having jurisdiction over Country World's Chapter 11
case.
The court will hear the matter on Dec. 22 and render a decision
shortly thereafter. This financing will allow Country World to
begin planning construction of the Casino in Black Hawk, Colorado
shortly following the Bankruptcy Court's approval.
William H. Patrowicz, president of Holly Products, Inc., stated
"We are delighted to have obtained this commitment on behalf of
Country World and believe that in short order we will put the
bankruptcy issues behind us, get on with the business of building
the casino and generate revenues from its operations by 1997.
Holly Products, Inc. headquartered in Moorestown, N.J., has a
wholly owned subsidiary, Navtech Industries, Inc. of Blanding, Utah
and a majority owned subsidiary, Country World Casinos, Inc. of
Denver, Colo. Navtech is a manufacturer and tester of printed
circuit boards and wire harnesses for slot machine tracking systems
and signage. Country World Casinos, Inc. is a development
corporation, whose sole asset is two parcels of property located in
Blackhawk, Colo. Country World's plan is to construct the largest
casino in the state of Colorado located in Black Hawk, Colo., as
well as a hotel complex at a future date.
CONTACT: Holly Products, Inc.,
William H. Patrowicz
609/234-1450
NEW YORK--Dec. 20, 1995--The following is a
statement by KPMG Peat Marwick LLP on litigation involving the
company in Orange County, Calif.:
"We are not surprised, but we are disappointed by the lawsuit.
It spotlights the county's pattern of trying to find others to blame
and to pay for the outcome of its own investment decisions.
"The California State Senate, the State Auditor and the Orange
County Grand Jury have all studied the events leading up to the
bankruptcy of the county. All have blamed the county and its
officials, not KPMG, for the outcome. The county's losses are the
result of its investment decisions and KPMG did not serve as an
investment advisor to the county.
"KPMG will defend itself vigorously and we will prevail."
CONTACT: KPMG Peat Marwick LLP, New York,
George Ledwith, 212/909-5310
Board of Directors Discontinues Dividend
TROY, Mich., Dec. 20, 1995 -- Kmart Corporation
(NYSE: KM)
announced today that it has reached agreements in principle which
will eliminate the "put" provisions on $548 million of Kmart's real
estate debt and will extend the term of certain of the company's
revolving credit facilities. Additionally, Kmart's Board of
Directors acted to eliminate its Common Stock dividend.
"These agreements will resolve the puttable debt issue and allow
us to build a financial structure that will provide greater
stability and financial flexibility to the benefit of our suppliers
and other key stakeholders," said Marvin P. Rich, Executive Vice
President, Strategic Planning, Finance and Administration. "These
agreements offer additional confidence to our vendors that we will
continue to remain current and honor usual and customary trade terms
with them."
The agreement in principle has been approved by the lead banks
in the Company's credit facilities and 20 of the 22 other
institutions holding the debt in connection with mortgage or lease
financing. Upon approval of certain additional banks, which is
expected promptly, the downgrade-related early payment provisions
would be substantially eliminated pending closing. Upon closing the
elimination would become permanent and the other modifications of
the Company's borrowing arrangement would continue. The agreements
are expected to close, subject to certain conditions, before the end
of February.
Terms of these agreements related to the puttable debt include:
Removal of the put features on $548 million principal amount of real
estate debt in exchange for the repayment of these obligations,
including a make-whole premium, in October 1997.
Removal of the put features does not include $95 million principal
amount of certain real estate debt of Kmart's former specialty
subsidiaries, $69 million of which the former subsidiaries are
primarily responsible in varying amounts, and $26 million of which
those companies are secondarily responsible.
Terms related to Kmart's lines of credit include:
The term of the Company's $300 million seasonal bank credit facility
and $199 million bank construction facilities which would have
expired will be extended to February 1997, and the term of all other
bank credit facilities ($2.7 billion) will remain in effect until
October 1997.
Borrowings under bank credit facilities may not exceed the amount
outstanding on December 22, 1995 unless agreed to by the banks. The
Company estimates that amount will be approximately $2.7 billion.
The Company will maintain $400 million in balances in its cash
management system with its regular credit facility banks. To the
extent that the Company's cash at any point in time is less than
that amount, the maintenance level will reduce accordingly.
"When these agreements are completed, Kmart expects to explore
the renegotiation of its bank credit facilities in the first quarter
of 1996 to further enhance its liquidity and financial flexibility,"
said Rich. "Kmart will also explore other financial alternatives,
including the sale of debt or equity securities through a $1.2
billion shelf registration filed recently with the Securities and
Exchange Commission, the possible divestiture of non-core assets and
the sale-leaseback of certain real estate."
The company expects to record a fourth quarter extraordinary
charge before income taxes of approximately $70 to $100 million as a
result of these agreements. The Company expects to pay incremental
one-time fees and financing costs of approximately $98 million
related to these agreements in 1996. Continuing incremental annual
interest expense is expected to be approximately $60 million.
The summary of terms of the agreements in principle provided
above is subject to the specific terms of the entire agreements,
which the company is filing today with the Securities and Exchange
Commission.
Kmart Corporation serves America with more than 2,163 Kmart and
171 Builders Square retail outlets in all 50 states, Puerto Rico,
the U.S. Virgin Islands and Guam. Kmart International operations
extend to Canada, the Czech Republic, Slovakia, and through joint
ventures, to Mexico and Singapore.
/CONTACT: Robert M. Burton, Director, Investor Relations,
810-643-1040, or Shawn M. Kahle, Vice President, Corporate Affairs,
or
Mary L. Lorencz, Director, Media Relations, 810-643-1021, all of
Kmart/
BRIGHTON, Mich., Dec. 20, 1995 -- Fretter, Inc.
(Nasdaq:
FTTR) announces sales of $134,173,000 for its third quarter ended
October 31, 1995. This is a decrease in sales of 33.7% from the
prior fiscal year. The Company closed twelve stores and opened six
new stores during the last fiscal year. The Company instituted a
program to close unprofitable stores in several geographic markets.
As of October 31, 1995, the Company has closed 150 stores operated
by its subsidiary Dixons U.S.
Holdings, Inc. under the Silo name; 19
stores operated by its subsidiary Fretter Auto Sound, Inc. under the
name Dash Concepts and 23 Fretter stores; all of which, in part,
contributed to the lower sales.
Comparable store sales decreased 45.1% for the third quarter
ended October 31, 1995. The term "comparable store sales" relates
each store's sales in a current fiscal period to the same store's
sales in the same period in the prior fiscal year.
For the third quarter ended October 31, 1995, the Company
announced a net loss of $188,886,000 ($17.92 per share) compared to
a net loss of $1,131,000 ($.16 per share) for the third quarter of
the last year. A charge of $55.1 million has been recorded to
reflect lease disposition costs, estimated losses from the disposal
of fixed assets and employee termination and other costs associated
with the 192 store closings. Of this amount, $48 million applied to
Dixons U.S. Holdings, Inc.'s Silo stores. In addition, the net loss
of $188,886,000 includes, in addition to the $55.1 million charge, a
write-off of goodwill attributable to Dixons U.S. Holdings, Inc.'s
Silo stores of approximately $83 million and a loss of approximately
$20 million associated with sales of the Company's inventory in
closed stores to third party liquidators.
As of October 31, 1995, the Company failed to meet two loan
covenants in its indebtedness to its primary lender. As of November
1, 1995, such loan agreement was amended to waive such defaults and
reduce the maximum available under such loan agreement from $140
million to $50 million. The Company is also in default of its
inventory finance agreement and concurrent default in its bank
facility for capital expenditures.
Based on the foregoing, the Company has engaged financial and
legal advisors to assist it in analyzing various alternative
strategies, each of which would lead to a material adverse impact on
the ability of the Company to continue its current operations in the
current fashion. On December 4, 1995, Dixons U.S. Holdings, Inc.
and its Silo subsidiaries filed for protection under Chapter 11 of
the United States Bankruptcy Code. Fretter and its remaining
subsidiaries including Fred Schmid Appliance & T.V. Co. have not
filed for Chapter 11 protection. However, the Company continues to
actively consider all of its options, including seeking relief under
the United States Bankruptcy Code for the Company and/or one or more
of its remaining subsidiaries.
Fretter, Inc. is a large volume specialty retailer of home
entertainment products, consumer electronics and appliances. Giving
effect to the above closure of stores, Fretter now operates 50
stores under the names Fretter and Fred Schmid Appliance & T.V. Co.
in the states of Colorado, Indiana, Michigan, Montana, Ohio and
Wyoming.
/CONTACT: Dale Campbell of Fretter, 810-220-5178/