/raid1/www/Hosts/bankrupt/TCR_Public/960312.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - March 12, 1996



  1. BATTERY ONE ANNOUNCES PURCHASE OF ASSETS
  2. Banctec Reports Loss in Quarter, Nine Months, As Expected
  3. Moto Photo reports year-end results
  4. MACGREGOR SPORTS & FITNESS ISSUES CLARIFICATION
  5. PENNCORP FINANCIAL GROUP, INC. SENIOR SUBORDINATED DEBT RATED 'BBB' BY DCR



BATTERY ONE ANNOUNCES PURCHASE OF
ASSETS
        


             TORONTO, March 12 /CNW-PRN/ - href="internat.canada.battery.html"> Battery One, Inc. (``Battery
        One'' or the ``Company'') is pleased to announce its completion of
        the purchase of all the property and assets of its former wholly-
        owned Canadian operating subsidiary, Battery One-Stop International
        Inc., effective March 8, 1996. The property and assets purchased by
        Battery One include: inventory; store furnishings, fixtures and
        equipment; and, all right, title and interest of Battery One-Stop
        International Inc. in and to fifteen (15) leased retail premises in
        malls in Canada (the ``Leased Premises''). Battery One's acquisition
        also provides the Company with the right to seek the consent of
        landlords to have the leases governing these Leased Premises
        assigned to it for purposes of resuming retail operations.

        
             The Company previously reported by News Release dated February
        1, 1996, that Battery One-Stop International Inc. had made a
        voluntary assignment in bankruptcy under the Canadian Bankruptcy and
        Insolvency Act on December 14, 1995. Battery One, as Battery One-
        Stop International Inc.'s parent company and largest creditor,
        benefits from a secured position, and is entitled to share in any
        net proceeds of the Bankrupt's Estate after expenses and super-
        priority claims, expected to be wound up and distributed over the
        course of the next 90 days.
   

     
         Batteries Etc., Inc. U.S. Bankruptcy Proceedings

        
             As previously reported, the Company's former wholly-owned U.S.
        operating subsidiary, Batteries Etc., Inc., which filed a Chapter 11
        Petition under the United States Bankruptcy Code, was converted to
        Chapter 7 on January 25, 1996. Battery One, the largest creditor of
        Batteries Etc., Inc., is entitled to share in any net proceeds of
        the Bankrupt's Estate, expected to be wound up and distributed over
        the course of the next 90 days.
   

     
             Battery One has made an offer to purchase certain strategic
        property and assets of the Estate of Batteries Etc., Inc. from the
        Bankrupt's New York Trustee, including: the acquisition of Batteries
        Etc., Inc.'s lease and lease rights for the leased retail premises
        in the Pittsburgh, Pennsylvania Airport, together with the related
        store furnishings, fixtures and equipment; plus, certain
        furnishings, fixtures and equipment situate at Batteries Etc.,
        Inc.'s former Rochester, New York offices.

        
         Special Warrant Private Placement Financing

        
             The Company previously reported upon the first closing of its
        Special Warrant Private Placement Financing (the ``Offering'') by
        News Release dated March 1, 1996, announcing the completion of 36
        million Special Warrants representing Cdn. $3.6 million. This
        closing and the availability of these funds has enabled the Company
        to purchase all of the property and assets of Battery One-Stop
        International Inc., and to offer to purchase certain property and
        assets of Batteries Etc., Inc.
   

     
             The Company further reported that given the response it had
        received to the Offering, it obtained regulatory approval to
        increase the maximum amount of the Offering to 45 million Special
        Warrants from 40 million Special Warrants, representing a total of
        Cdn. $4.5 million.

        
             The Company is pleased to now report the subscription for an
        additional 3.5 million Special Warrants, representing Cdn. $350,000.
        The balance of the Offering, representing 5.5 million Special
        Warrants and Cdn. $550,000 which remains unsubscribed, is
        anticipated to be completed on or before March 29, 1996.
   

     
             Battery One, Inc. publicly held, trades on The Alberta Stock
        Exchange under the symbol ``BTB'' and on NASDAQ's OTC Bulletin Board
        under the symbol ``BATT''.
      

  
             The Alberta Stock Exchange neither approves nor disapproves of
        the contents of this News Release.
        


        CONTACT: Battery One, Investor Relations, at 1-800-387-4239 or
        905-479-5683



Banctec Reports Loss in Quarter, Nine Months, As Expected;
        Consolidation of Recognition International Major Factor

        
            DALLAS, TX -- March 12, 1996 -- BancTec(R) (NYSE-BTC)
        reported today that, as expected, consolidated results for the
        quarter and nine months ended December 31 were affected by
        previously announced charges related to the merger and consolidation
        of the operations of Recognition International Inc.  (RII).  For the
        quarter, the Company said, its net loss was $61.8 million, or $3.02
        per share, on revenues of $125 million, compared to net income of
        $7.0 million, or 35 cents per share, on revenues of $142.7 million
        for the comparable period in the previous year.  
        


            BancTec, which earlier announced that it would change its fiscal
        year to begin January 1, 1996, said that, as expected for the
        consolidated nine-month period in 1995, it had a net loss of $53.5
        million, or $2.63 per share, on revenues of $384 million, compared
        to a net loss of $12.9 million, or 63 cents per share, on revenues
        of $389.7 million in the same nine-month period in the previous
        year.  

        
                       Results In Line With January Estimates
   

     
            "These results are right in line with the estimates we outlined
        to investors in January,"  said Grahame N.  Clark, Jr., chairman and
        chief executive officer.  In the quarter, revenues were down some 12
        percent, due primarily to lower sales by former RII operations,
        which were anticipated.  BancTec booked, as previously announced,
        pretax charges of $85 million related to the merger and
        restructuring of the Company as it consolidates the RII operations
        acquired in October of 1995.  "Excluding these charges, we were at
        approximately break even in pretax income for the quarter,"  Clark
        said.  "On a period-over-period basis, our gross profits excluding
        these charges were down by $13.2 million, primarily because of the
        factors we cited in January: lower revenues from former RII
        operations, some cost overruns on certain large systems development
        contracts which produced important new software product technology
        and startup costs related to several new large network service
        contracts."  

        
            In the nine-month period, BancTec said, the loss resulted from
        the charges and an after tax item of $1.2 million for depreciation
        changes to conform RII depreciation policies with those of BancTec.
        "Those charges were partially offset by $9.5 million of net earnings
        we had in the first two quarters,"  Clark said.  
   

     
                    Merger and Restructuring Charges Detailed
      

  
            The $61.8 million loss in the quarter, the Company said, was
        made up primarily of the $85 million (pretax) charge composed of: 1)
        Severance of employees, excess inventory and inventory related to
        discontinued products, certain fixed assets, relocation and other
        accrued expenses of $41 million reflected in Cost of Sales; 2) Write-
        off of capitalized software and severance of employees of $7 million
        reflected in Product development; 3) Costs incurred to complete the
        merger, severance of employees and write-off of certain trade
        accounts receivable of $24 million reflected in SG&A; and 4) Write-
        off of goodwill and certain intangible assets of $13 million
        reflected in Amortization.  

        
            The net loss for the nine-months of $53.5 million consisted of
        the $85 million charges and the depreciation change provision,
        offset by the first two quarters' net income of $9.5 million.  On a
        consolidated basis there was also a restructuring charge of $20
        million taken in 1994 by RII.  To make financial statements
        consistent on a period-to-period basis, this charge was reflected in
        the reported figures as $16 million for Cost of Sales, and $4
        million in SG&A.  
   

     
                  Clark Outlines Achievements Since Acquisition
      

  
            "We are well underway with the consolidation,"  Clark said.
        "Our management organization is in place, order bookings continue at
        or above plan and over the past five months we have streamlined our
        sales, administration, and marketing and service organizations and
        strengthened our product families.  We have renegotiated our bank
        line of credit, thereby reducing interest costs and increasing our
        revolving credit facility to $50 million.  We are now in the final
        phase of improving our information systems, and moving all
        manufacturing and assembly operations to our Irving, Texas,
        facility."  

        
                         Focusing on Areas of Expertise
   

     
            Clark noted that the Company is focusing on those areas where it
        has particular business and technical expertise.  He said those
        areas include financial document processing, image-based archival
        and retrieval applications, document imaging and workflow, community
        banking, local area network management and PC maintenance services.
      

  
            "During the past year, the Company introduced several new
        product and service programs,"  Clark said.  "An increase in market
        demand for high- speed image-based archival and retrieval systems
        coincided with the introduction and delivery of the ImageFIRST
        OpenArchive(R) products.  We were able to sell major systems to GTE,
        The Federal Reserve Bank of Boston, the Norwegian BBS and other U.S.
        and European companies.  

        
            "We introduced the Model 9500 workstation for lower volume
        applications, and our new S-Series high-speed scanners for page
        imaging -- our newest products and the industry's most complete
        array of hardware, software and systems solutions for document
        processing and imaging,"  he noted.  
   

     
            Continuing Growth in Network Management, PC Services
      

  
            The Company is also experiencing continuing growth in its
        network management and PC Services businesses.  "Major companies are
        turning to BancTec for their outsourcing solution, and we continue
        to win awards for our PC maintenance services to such companies as
        Dell, AST, PictureTel and Power Computing,"  Clark said.  
        


            He pointed to the Company's Plexus(R) imaging and workflow
        software division as another area of potential growth.  "During the
        past few months we have taken strong steps to re-establish Plexus as
        a premier supplier of such products.  We have recruited an
        experienced executive as general manger, established the division's
        headquarters in Sunnyvale, Calif., made strategic product
        announcements, and developed new advertising programs.  And we have
        significantly strengthened relationships with our business
        partners," he added.  

        
            Customers, shareholders and employees have responded very well
        to the Company's current business direction, Clark said.  "We are
        now much larger and more diverse, putting us in an ideal position to
        capitalize on our strengths and make the most of future growth
        opportunities.  We are determined to further strengthen our position
        as an acknowledged leader in each of the industries we serve,"  he
        concluded.  
   

     
            BancTec is a leading provider of integrated financial
        transaction processing systems, workflow and imaging products,
        application software, and professional services.  The Company
        specializes in developing solutions for the banking, financial
        services, insurance, health care, government, utility,
        telecommunications, grocery and retail industries.  The Company also
        designs and manufactures document processing equipment for OEM
        customers and provides network support services for local area
        networks and personal computers.


        
                                  BANCTEC, INC
                             STATEMENT OF OPERATIONS
                      (In Thousands, except per share data)
                                    3 Months Ended       9 Months Ended
                                    --------------       --------------
                                  12/31/95  12/31/94   12/31/95   12/31/94
                                  --------  --------   --------   --------
        
         Revenue                  $125,003  $142,733   $383,984   $389,743
         Cost of Sales             137,186    99,488    322,503    289,727
                                  --------  --------   --------   --------
         Gross Profit              (12,183)   43,245     61,481    100,016
                                  --------  --------   --------   --------
        
         Operating Expenses
           Product development      12,201     5,126     21,455     20,899
           S, G & A                 43,200    23,485     85,908     71,837
           Amortization             14,598     2,819     18,089      7,274
                                  --------  --------   --------   --------
                                    69,999    31,430    125,452    100,010
                                  --------  --------   --------   --------
        
         Income (Loss) From
          Operations               (82,182)   11,815    (63,971)         6
                                  --------  --------   --------   --------
        
         Other Income (expense)
           Interest income
            (expense) - net         (2,012)   (2,038)    (5,470)    (5,235)
           Sundry - net               (759)     (227)    (1,274)     1,116
                                  --------  --------   --------   --------
                                    (2,771)   (2,265)    (6,744)    (4,119)
                                  --------  --------   --------   --------
        
         Income (Loss) Before
          Provision for Income
          Taxes                    (84,953)    9,550    (70,715)    (4,113)
        
         Income Tax Provision      (23,136)    3,267    (17,234)     9,984
         Minority Interest               0       766          0      1,210
                                  --------  --------   --------   --------
        
         Net Income               $(61,817) $  7,049   $(53,481)  $(12,887)
                                          
        
         Earnings Per Share:
           Net income             $  (3.02) $   0.35   $  (2.63)  $  (0.63)
        
         Fully Diluted Shares       20,451    20,247     20,315     20,341
        
                                 BALANCE SHEET
                                 (In thousands)
        
                                                 12/31/95       3/26/95
                                                 --------       -------
              Cash and temporary investments     $ 26,874      $ 52,837
              Receivables - net                   106,189       131,767
              Inventory - net                      76,930        76,831
              Other current assets                 25,873        20,327
                                                 --------      --------
              Total Current Assets                235,866       281,762
        
              Goodwill - net                       91,503       101,497
              Other non-current assets            112,979       118,499
                                                 --------      --------
              Total Assets                       $440,348      $501,758
                                                       
              Current liabilities                $193,530      $191,622
              Non-current liabilities              90,617       103,393
              Stockholders' equity                156,201       206,743
                                                 --------      --------
              Total Liabilities and Equity       $440,348      $501,758


        CONTACT:  Banctec
                  Raj Rajaji, 214/450-7753


Moto Photo reports year-end results


            DAYTON, Ohio -- March 12, 1996 -- Moto Photo Inc.
        (NASDAQ:MOTO), a Dayton, Ohio based franchisor and operator of 440
        one hour photofinishing labs in the U.S., Canada, and Norway, today
        reported results for the fourth quarter and year-ended Dec. 31,
        1995.  
        


            All results for 1995 are after the previously announced fourth
        quarter charge to earnings of $5.8 million to write-down the book
        value of 32 company stores the company intends to sell as
        franchises.
        


            Fourth quarter 1995 had a net loss of $5,519,583 or 72 cents per
        share compared to a net income of $511,494, or 4 cents per share in
        the fourth quarter of 1994.  Fourth quarter revenues increased to
        $11,818,147 from $11,425,819 for the same period of 1994.  For the
        year the company recorded a net loss of $5,673,647, or 69 cents per
        share compared to an income of $725,230, or a loss of 7 cents per
        share in 1994.  Revenues for 1995 were $42,217,722, up from 1994's
        revenues of $40,144,886.  Earnings per share amounts are after
        dividends recorded on the company's preferred shares.

        
            Michael F. Adler, chairman and CEO of Moto Photo, said, "1995
        was a weak year due to the interruption of our color paper supply
        caused by changes in U.S. import practices and the losses generated
        by the expansion of our nationwide telemarketing service. We had a
        profit of $126,353 before the restructuring charge and could have
        had a record year but for these factors."
   

     
            Adler continued, "Our concept of offering imaging services
        through franchisees is working and even in 1995's soft retail
        environment, our franchises are generating same store sales growth
        of almost 9 percent.  However, company store comparable sales were
        down 1 percent.  This long standing trend makes it clear that
        franchising is a better way for us to go than through company
        stores, and as a result, we have designed a plan to allow both the
        company and franchises to improve their profits and to improve our
        company balance sheet while playing to our major strength as
        America's largest franchisor of one hour photofinishing labs and
        portrait studios.  This led to our decision to take a write-down on
        selected company stores in order to facilitate the franchising of
        these 32 stores."

        
            "The color paper situation will be corrected in the next several
        months, telemarketing results are improving, and we anticipate 1996
        as a year we get back on the track of ever increasing profits,"
        Adler concluded.


        
        MOTO PHOTO INC.
        FINANCIAL HIGHLIGHTS
        
                             QUARTER ENDED              YEAR-ENDED
                                DEC. 31                   DEC. 31
                         12/31/95     12/31/94     12/31/95     12/31/94
                         ________     ________     ________     ________
        
        Revenue            $11,818,147  $11,425,491  $42,217,722
        $40,144,886
        Pre-tax income
         (loss)             (5,417,583)     822,494   (5,673,647)
        1,150,230
        Income tax
         (expense) benefit    (102,000)    (311,000)
        ---         (425,000)
        Net income (loss)
         after tax          (5,519,583)     511,494   (5,673,647)
        725,230
        One-time adjustment
         to common share
         earnings              ---          ---          673,219      ---
        Less preferred
         dividends             (73,004)    (283,449)    (307,354)
        (1,120,725)
        Net income (loss)
         applicable to
         common shares      (5,592,587)     228,045   (5,307,782)
        (395,495)
        Net income (loss)
         per common share       $(0.72)       $0.04       $(0.69)
        $(0.07)
        Average shares
         outstanding         7,785,973    5,694,103    7,687,249
        5,664,446


        CONTACT:  Moto Photo Inc., Dayton,
                  David Mason, 513/854-6686
        

MACGREGOR SPORTS & FITNESS ISSUES CLARIFICATION

        
            GREENVILLE, S.C., March 12, 1996 - href="chap11.macgregor.html">MacGregor Sports &
        Fitness, Inc.
("MacGregor") (Nasdaq: MACG) responded today to a
        press release issued by Riddell Sports, Inc. on March 8, 1996,
        concerning a "Letter of Intent to Settle Litigation in MacGregor
        Bankruptcy."  This press release is to clarify that the Riddell
        Sports press release related to the bankruptcy of MacGregor Sporting
        Goods, Inc., now known as "M Holdings," a New Jersey-based company
        which filed bankruptcy in 1988.  It does not in any way relate to or
        impact upon MacGregor and its business.  Mike Casazza, President of
        MacGregor, specifically noted that "neither the long-ago bankruptcy
        of an unrelated party or the settlement of litigation among the
        parties in the bankruptcy proceeding has any impact upon the
        upcoming merger between MacGregor and Technical Publishing
        Solutions, Inc. ("TPSI"), as announced on January 15, 1996, which is
        progressing as planned."  MacGregor and TPSI currently anticipate
        that the proposed merger will be consummated before the end of the
        second quarter of 1996.


        CONTACT:  Michael S. Casazza, President of MacGregor Sports &
        Fitness, 864-294-5230



PENNCORP FINANCIAL GROUP, INC. SENIOR SUBORDINATED DEBT RATED 'BBB' BY DCR
        


            CHICAGO, March 12, 1996 - Duff & Phelps Credit Rating Co.
        (DCR) has rated the senior subordinated debt of PennCorp Financial
        Group, Inc. (PennCorp) at 'BBB' (Triple-B).  The rating reflects the
        improved capital structure from the recent issuance of common
        equity, moderate interest and preferred dividend coverage and very
        good asset quality.  Weighed against these positives are
        uncertainties associated with the company's acquisition strategy.
        


            PennCorp is a publicly traded holding company based in New York
        City with total assets of $3.2 billion and shareholders' equity of
        $436 million (excluding FAS 115) at December 31, 1995.  In March
        1996, the company issued $143 million of common equity in a public
        offering.  This issuance lowered PennCorp's debt-to-total capital
        ratio from 40 percent at December 31, 1995, to 25 percent on a pro
        forma basis.  The company maintains a large preferred equity
        component of the capital structure, 17 percent pro forma at yearend
        1995.  Interest coverage ratio and interest and preferred coverage
        ratio on a pro forma basis were 6.3 times and 3.4 times,
        respectively, in 1995.  PennCorp's target debt-to- total capital
        ratio is 25 percent, however the company is willing to allow this
        ratio to increase if an attractive acquisition becomes available.
        In 1995, PennCorp formed an acquisition partnership with bank
        investors called Knightsbridge Capital Fund I, L.P. (Knightsbridge).
        In December 1995, PennCorp (67 percent) and Knightsbridge (33
        percent) purchased Southwestern Financial Corp. (SWF) for $260
        million.  SWF was formed by PennCorp and Knightsbridge for the
        acquisition of Southwestern Life Insurance Company, Union Bankers
        Life Insurance Company and other units from href="chap11.ich.html">I.C.H. Corporation, a
        bankrupt holding company.

        
            The majority of PennCorp's growth since its establishment in
        1989 has come through acquisitions.  The company's strategy has been
        to acquire life insurance companies and consolidate their operations
        with the operations of other PennCorp subsidiaries.  The company's
        goal is to expand distribution channels, product portfolio and
        geographic diversification and reduce expenses.  Through its
        operating subsidiaries, PennCorp provides life insurance, accident
        and sickness insurance and annuity products to individuals.  Key
        individual markets include low and moderate income households, non-
        English speaking households, military enlistees and rural/suburban
        locations.  To reach these markets, PennCorp uses a career sales
        force, an independent general agent sales force and a payroll
        deduction sales force.  In 1995, pro forma operating return on
        assets was 2.67 percent and return of equity was 15 percent.
        PennCorp has very good asset quality with low exposure to below
        investment grade bonds and mortgage loans.  Total invested assets at
        December 31, 1995, consisted of bonds at 67 percent, cash at 19
        percent, policy loans at 5 percent, trading securities at 4 percent
        and mortgage loans at 2 percent.


        CONTACT:  Julie A. Burke, CPA, CFA, 312-368-3158, or Douglas M.
        Pawlowski, 312-368-2054, both of Duff & Phelps Credit Rating Co.