/raid1/www/Hosts/bankrupt/TCR_Public/960715.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 15, 1996



  1. Interleaf announces preliminary first quarter results and restructuring
  2. Corning Incorporated Reports Second Quarter Earnings...
  3. Cadiz Land Company announces Plan of Reorganization of Sun World International
  4. L.A. Gear reports financial results for the second quarter and six months
  5. Cajun cooperatives want court to declare power contracts null





Return To The InterNet Bankruptcy Library Homepage


Interleaf announces preliminary first quarter results and restructuring


        


            WALTHAM, Mass. -- July 15, 1996 -- Interleaf, Inc.
        (NASDAQ: LEAF) today announced preliminary first quarter results and
        a restructuring to reduce expenses and heighten the Company's
        strategic focus on its integrated document management business.  The
        Company expects to report revenues of approximately $19.1 million
        and a loss of approximately $3.5 million to $4 million for the first
        quarter ended June 30, 1996.  The restructuring will result in a one-
        time charge of approximately $4 million to $5 million, subject to
        final cost analysis, in the second quarter ending September 30,
        1996.  
        


            Ed Koepfler, Interleaf president and CEO, commented: "Over the
        past several years the growth in our integrated document management
        (IDM) business has been more than offset by the continuing decline
        in stand-alone high-end products, historically the Company's main
        business, and this trend accelerated in the first quarter.  We are
        concentrating our development, marketing and sales efforts on IDM in
        order to retain market leadership in this emerging marketplace.  We
        have also taken actions that will cut over $2 million out of our
        quarterly expense rate by our third fiscal quarter.  We expect that
        these actions will bring expenses in line with current revenue
        levels and accelerate our return to profitability when our IDM
        business starts to drive growth in total revenues."  
        


            The Company disclosed that the number of employees after the
        restructuring is now about 530, down from 647 on March 31, 1996.
        The Company has implemented plans to complete the second and final
        phase of its move from its former corporate headquarters and to
        reduce field office expenses.  
        


            The final financial results for the quarter ended June 30, 1996
        will be released on July 26, 1996.  
        


        CONTACT:  Interleaf
                  G. Gordon M. Large 617.768.1012
                       or
                  Dana Finnegan 617.768.1038
        



Corning Incorporated Reports Second Quarter Earnings from Continuing Operations Up 17%; Growth Fueled by Optical Fiber and Cable And Ceramic Substrate Businesses


        


            CORNING, N.Y. -- July 15, 1996 -- Corning
        Incorporated (NYSE:GLW) said today that its 1996 second quarter net
        income from continuing operations totaled $93.8 million, or $0.41
        per share, an increase of 17 percent over adjusted second quarter
        1995 earnings of $0.35 per share.  The adjusted 1995 second quarter
        results exclude a special charge taken by Corning to fully reserve
        its investment in Dow Corning Corporation and a restructuring
        provision.  
        


            Second quarter sales from continuing operations totaled $913.7
        million, an increase of 14 percent over adjusted 1995 levels.  
        


            "The improvement in overall operating performance demonstrates
        the strength and market position of our core businesses and
        technologies," said Roger G. Ackerman, chairman and chief executive
        officer.  "Looking ahead, we are optimistic about the second half of
        the year.  We are moving aggressively to capture the growth in key
        markets with expansions under way for optical fiber, advanced
        materials, television glass and projection lenses."
        


            The company said its sales and earnings growth was fueled by
        strong demand for optical fiber, cable and components for
        telecommunications markets, for ceramic substrates for environmental
        applications, and for life science products.  In consumer products,
        results improved compared with 1995's second quarter.  However,
        results from information display businesses were down from year
        earlier levels due to expansion-related manufacturing issues.  
        


            Equity company earnings, excluding Dow Corning, increased
        approximately 10 percent from adjusted 1995 levels, due primarily to
        solid results from optical fiber equity companies in Europe and
        Australia and from Samsung-Corning Company Ltd. in South Korea.  
        


            Continuing operations include the company's Communications,
        Specialty Materials and Consumer Products segments.  As previously
        announced, on May 14, 1996, Corning is pursuing the spin-off of its
        clinical laboratory and pharmaceutical services businesses in a
        transaction expected to be completed by year-end.  Therefore,
        Corning has begun to account for the Health Care Services segment as
        discontinued operations.  
        


            The company recorded a loss from discontinued operations of
        $56.8 million, or $0.25 per share, in the second quarter of 1996.
        The loss includes a charge for the estimated costs related to the
        spin-offs and a charge to increase reserves for government claims at
        Corning Clinical Labs, offset by the estimated results of the
        segment through the anticipated date of the spin-off.  
        


            Corning's total net income, including the loss from discontinued
        operations, was $37.0 million, or $0.16 per share, for the second
        quarter 1996, compared with a net loss of $297.2 million, or $1.32
        per share, in the same period of 1995.  
        


            Commenting on discontinued operations, Ackerman said, "Corning
        Pharmaceutical Services is benefiting from the high growth in the
        contract research field as part of the trend to bring new drugs to
        the marketplace at a faster pace.  At Corning Clinical Laboratories,
        operations continue to stabilize, but the dynamics of that market
        continue to be difficult."  
        


            Established in 1851, Corning Incorporated creates leading-edge
        technologies for the fastest growing segments of the world's
        economy. Corning manufactures optical fiber, cable and components,
        high- performance glass and components for televisions, and other
        electronic displays for communications and communications-related
        industries; advanced materials for the scientific, life sciences and
        environmental markets; and consumer products.  Corning's total
        revenues from continuing operations in 1995 were $3.3 billion.


        The following accounting and reporting changes, that had been
        announced previously, are referenced in this second quarter 96 press
        release.



        
                 Corning Incorporated and Subsidiary Companies
                        Consolidated Statements of Income

               (Unaudited; in millions, except per-share amounts)
         
                     Six Months     Twenty-Four   Three Months  Twelve Weeks
                       Ended        Weeks Ended      Ended         Ended
                      June 30,        June 18,      June 30,      June 18,
                       1996             1995          1996          1995
        
        Revenues
         Net sales        $1,751.3         $1,397.0      $913.7
        $764.8
         Royalty, interest
          and dividend
          income              15.0             14.6         7.0
        8.2
                       1,766.3          1,411.6       920.7         773.0
        
        Deductions
         Cost of sales     1,085.7            867.2       568.7
        474.8
         Selling, general
          and administrative
          expenses           306.8            241.0       148.4
        124.9
         Research and
          development
          expenses            90.2             77.4        44.9
        39.9
         Provision for
          restructuring
          and other
          special charges                      26.5
        26.5
        Interest expense      36.0             31.6        18.3
        16.8
        Other, net            11.2              9.7         4.1
        1.8
         
        Income from continuing
         operations
         before taxes on
         income              236.4            158.2       136.3
        88.3
        Taxes on income
         from continuing
         operations           79.2             47.9        45.7
        25.1
         
        Income from continuing
         operations before
         minority interest and
         equity earnings     157.2            110.3        90.6
        63.2
        Minority interest in
         earnings of
         subsidiaries        (28.0)           (28.3)      (15.8)
        (17.3)
        Dividends on
         convertible
         preferred
         securities
         of subsidiary        (6.9)            (6.3)       (3.5)
        (3.1)
        Equity in earnings
         (losses) of
         associated companies:
          Other than
          Dow Corning Corp.   34.1             29.4        22.5
        21.0
          Dow Corning Corp.                  (348.0)
        (365.5)
        Income (loss) from
         continuing
         operations          156.4           (242.9)       93.8
        (301.7)
        Income (loss) from
         discontinued
         operations,
         net of income
         taxes               (47.6)            25.1       (56.8)
        4.5
        
        Net Income (Loss)   $108.8          $(217.8)      $37.0
        $(297.2)
         
        Per Common Share:
         Continuing
          operations         $0.68           $(1.08)      $0.41
        $(1.34)
         Discontinued
          operations         (0.21)            0.11       (0.25)
        0.02
         Net Income (Loss)   $0.47           $(0.97)      $0.16
        $(1.32)
         
        Dividends Declared   $0.36            $0.36       $0.18
        $0.18
         
        Weighted Average
         Shares Outstanding 227.3             225.9       227.3
        226.3
         
        The accompanying notes are an integral part of these statements.
         
        Corning Incorporated and Subsidiary Companies
        Condensed Consolidated Balance Sheets

        (In millions)
         
                                       June 30, 1996      Dec. 31, 1995
                                        (Unaudited)
        Assets
         
        Current Assets
         Cash and short-term investments      $122.2              $187.6
         Receivables, net                      550.9               479.5
         Inventories                           501.0               426.5
         Deferred taxes on income and
          other current assets                 136.5               102.8
         Total current assets                1,310.6             1,196.4
         
        Investments                            339.9               364.9
         
        Plant and Equipment, Net             1,769.2             1,599.6
         
        Goodwill and Other Intangible
         Assets, Net                           347.1               330.8
         
        Other Assets                           273.8               305.3
         
        Net Assets of Discontinued
         Operations                          1,736.7             1,664.7
                                        $5,777.3            $5,461.7
         
        Liabilities and Stockholders' Equity
         
        Current Liabilities
         Loans payable                        $415.0              $143.1
         Accounts payable                      166.2               202.6
         Other accrued liabilities             431.6               396.3
         Total current liabilities           1,012.8               742.0
         
        Other Liabilities                      634.7               618.3
        Loans Payable Beyond One Year        1,303.8             1,340.0
        Minority Interest in
         Subsidiary Companies                  302.5               269.8
        Convertible Preferred Securities
         of Subsidiary                         364.9               364.7
        Convertible Preferred Stock             23.3                23.9
        Common Stockholders' Equity          2,135.3             2,103.0
                                        $5,777.3            $5,461.7
         

        The accompanying notes are an integral part of these statements.
        


        Corning Incorporated and Subsidiary Companies
        Notes to Consolidated Financial Statements
        Quarter 2, 1996

         


        (1) In May 1996, Corning's Board of Directors approved a plan to
        distribute to its shareholders on a pro rata basis all of the shares
        of Corning Clinical Laboratories Inc.  and Corning Pharmaceutical
        Services Inc. (the "Distributions").  The result of the plan will be
        the creation of two independent, publicly-owned (but as yet unnamed)
        companies.  Corning has submitted to the Internal Revenue Service a
        request for a ruling that the Distributions will qualify as tax-free
        distributions under the Internal Revenue Code of 1986.  The final
        terms of the Distributions, which are subject to approval by Corning
        s Board of Directors, will be set forth in registration statements
        to be filed with the Securities and Exchange Commission and in an
        Information Statement to be distributed to Corning's shareholders.  
        The Distributions are expected to occur by the end of 1996.  
         


        Corning's investment in equity and intercompany debt of the
        companies to be distributed totaled $1.7 billion at June 30, 1996.  
        Corning currently estimates that, prior to the Distributions, the
        companies to be distributed will borrow approximately $600 million
        to $800 million from third-party lenders and repay intercompany debt to
        Corning, reducing Corning's investment to approximately $900 million
        to $1.1 billion.  Corning's stockholders equity will be reduced by
        Corning's investment in these companies at the date of the
        Distribution.  Corning intends to use the proceeds from the
        repayment of intercompany debt to repay third-party debt, repurchase shares or
        invest for future strategic uses.  
         


        As a result of the plan to distribute the clinical-laboratory and
        pharmaceutical-services businesses, Corning's consolidated financial
        statements and notes report these businesses, which comprised
        Cornings Health Care Services segment, as discontinued operations.  Prior
        period financial statements have been restated accordingly.  
         


        The loss from discontinued operations in the second quarter of 1996
        includes a charge for the estimated costs related to the
        Distributions and a charge to increase reserves for government
        claims, offset by the estimated results of operations of the
        businesses to be distributed from April 1, 1996, through December
        31, 1996, the anticipated date of the Distributions.  Income from
        discontinued operations for the second quarter of 1995 includes an
        after-tax restructuring charge of $24.4 million.  
         


        As disclosed in Corning's 1995 Annual Report on Form 10-K,
        government investigations of certain practices by clinical
        laboratories acquired in recent years are ongoing.  In the second
        quarter, the U.S.  Department of Justice notified Corning Clinical
        Labs that it has taken issue with certain payments received by Damon
        


        Corporation from federally funded healthcare programs prior to its
        acquisition by Corning.  Corning Clinical Labs management has met
        with the U.S. Department of Justice several times to evaluate the
        substance of the government's allegations.  Discussions with the
        U.S. Department of Justice are in a preliminary state and consequently,
        it is not possible to predict the outcome of this matter with any
        certainty.  
        


        Corning Clinical Labs has established reserves equal to management's
        estimate of the low end of the range of potential amounts which
        could
        be required to satisfy the government's claims.  However, it is
        possible that the aggregate claim (which might include restitution,
        multiple damages, other civil penalties or criminal fines) could be
        in excess of established reserves by an amount which could be
        material to Corning's results of operations and cash flows in the
        quarter in which such claim is settled.  Corning does not believe
        that this claim will have a material adverse impact on Corning's
        overall financial condition.  
         


        (2) Earnings per common share are computed by dividing net income
        less dividends on Series B convertible preferred stock by the
        weighted average number of common shares outstanding during the
        period.  The weighted average shares outstanding for the second
        quarter and first half of 1996 was 227.3 million and 226.3 million
        and 225.9 million, respectively, for the same periods in 1995.  
        Series B preferred dividends amounted to $0.5 million and $1.0
        million in the second quarter and first half, respectively, in both
        1996 and 1995.  
         


        (3) Depreciation and amortization charged to continuing operations
        during the first half of 1996 and 1995 totaled $141.8 million and
        $120.2 million, respectively.  
         


        (4) Corning's effective tax rate for continuing operations was 33.5%
        for the second quarter and first half of 1996.  Excluding the impact
        of the restructuring charge, the effective tax rate was 31% and
        31.5% for the second quarter and first half of 1995.  The lower 1995 rate
        was due to a higher percentage of Corning's earnings from
        consolidated entities with lower effective tax rates.  
         


        (5) Effective January 1, 1996, Corning made several changes to its
        accounting calendar to make Corning's results more comparable with
        other companies and to enable Corning to report results of certain
        subsidiaries on a more current basis.  
         


        First, Corning adopted an annual reporting calendar.  Previous years
        operated on a fiscal year ending on the Sunday nearest December 31.
        As a result, Corning's 1996 quarters will include results for three
        calendar months while Corning's quarters previously included results
        for 12 weeks (16 weeks in the third quarter).  
         


        Second, Corning's 1996 quarters will include three months of
        operations for all significant subsidiaries and affiliates.  
        Previously, certain subsidiaries reported two months of results in
        the first quarter and four months of results in the third quarter.  
         


        Third, Corning Life Sciences, Inc.  and certain other consolidated
        subsidiaries that previously reported on a fiscal year ending
        November 30 adopted a calendar year end.  The December 1995 results
        of these subsidiaries were recorded in retained earnings during the
        first quarter of 1996.  
         


        Second quarter and first half 1995 financial statements were not
        restated for the calendar change.  The following table presents
        unaudited pro forma results for the second quarter and first half
        1995 as if this change had occurred at the beginning of 1995 (in
        millions except per-share amounts):
         



                                            Three               Six
                                         Months Ended       Months Ended
                                        June 30, 1995      June 30, 1995
                                         (pro forma)        (pro forma)
         
        Sales                                   $801.3           $1,568.8
         
        Net income (loss)
        Before Dow Corning Corporation
         and restructuring                       $80.3             $136.8
        Equity in losses of
         Dow Corning Corporation                (365.5)            (348.0)
        Provision for restructuring              (16.1)             (16.1)
        Continuing operations                   (301.3)            (227.3)
        Discontinued operations                    3.1               29.5
         
        Net loss                               $(298.2)           $(197.8)
         
        Net income (loss) per common share
         Before Dow Corning Corporation
          and restructuring                      $0.35              $0.60
         Equity in losses of
         Dow Corning Corporation                 (1.62)             (1.54)
         Provision for restructuring             (0.07)             (0.07)
         Continuing operations                   (1.34)             (1.01)
         Discontinued operations                  0.02               0.13
         
         Net loss per common share              $(1.32)            $(0.88)

        
        (6) On May 15, 1995, Dow Corning Corporation (a 50%-owned equity
        company) voluntarily filed for protection under Chapter 11 of the
        United States Bankruptcy Code.  As a result of this action, Corning
        recorded an after-tax charge of $365.5 million, or $1.62 per share,
        in the second quarter of 1995 to fully reserve its investment in Dow
        


        Corning Corporation.  
         


        Corning also discontinued recognition of equity earnings from Dow
        Corning Corporation beginning in the second quarter of 1995.
        Corning recognized equity earnings from Dow Corning Corporation of $17.5
        million in the first quarter of 1995.  
         


        (7) In the second quarter of 1995, Corning recorded a restructuring
        charge in continuing operations totaling $26.5 million ($16.1
        million after- tax) or $0.07 per share.  
        



        CONTACT: Kathryn C. Littleton, (607) 974-8206
                 Paul A. Rogoski, (607) 974-8832
                   or
                 Investor Relations Contact:   
                 Richard B. Klein, (607) 974-8313
                 Katherine M. Dietz, (607) 974-8217



Cadiz Land Company announces Plan of Reorganization of Sun World International


        


            RANCHO CUCAMONGA, Calif. -- July 15, 1996 -- Cadiz
        Land Company Inc. (NASDAQ:CLCI) announced Monday that on Friday,
        July 12, the U.S. Bankruptcy Court confirmed the Plan of
        Reorganization of Sun World
International Inc.
which provides for
        the acquisition of Sun World by CLCI for consideration of
        approximately $175 million.  
        


            The Plan of Reorganization was confirmed following an
        affirmative vote by all classes of interest.
        


            Sun World, one of California's leading agricultural concerns
        with approximately $150 million in revenues, filed for Chapter 11
        bankruptcy protection in October 1994 after debt restructuring
        negotiations with its existing creditors failed.
        


            Assuming satisfaction of all Plan requirements (including
        completion of satisfactory documentation), ownership of Sun World
        will be transferred to CLCI within the next several weeks.
        


            Following completion of the acquisition, the combined company
        will own in excess of 60,000 acres in California of which more than
        20,000 acres are developed to agriculture and its portfolio will
        include contract rights to the principal water supply systems in
        California.
        


         CONTACT:  Cadiz Land Company Inc.-
                  Keith Brackpool, 909/980-2738;
                       or
                  Stoorza, Ziegaus & Metzger Inc.;
                  Cathy Ann Connelly or Fiona Hutton, 213/891-2822
        



L.A. Gear reports financial results for the second quarter and six months


        


            SANTA MONICA, Calif. -- July 15, 1996 -- L.A. Gear
        Inc. (NYSE:LA) Monday announced its financial results for the
        quarter and six months ended May 31, 1996.  
        


            For the quarter ended May 31, 1996, the company reported a net
        loss and a loss applicable to common stock of $7.5 million ($0.33
        per share) and $9.6 million ($0.42 per share), respectively, on net
        sales of $38.5 million.
        


            For the quarter ended May 31, 1995, the company reported a net
        loss and a loss applicable to common stock of $5.9 million ($0.26
        per share) and $7.8 million ($0.34 per share), respectively, on net
        sales of $79.0 million.  
        


            For the six months ended May 31, 1996, the company reported a
        net loss and a loss applicable to common stock of $6.4 million
        ($0.28 per share) and $10.5 million ($0.46 per share), respectively,
        on net sales of $117.1 million.
        


            For the six months ended May 31, 1995, the company reported a
        net loss and a loss applicable to common stock of $17.6 million
        ($0.77 per share) and $21.3 million ($0.93 per share), respectively,
        on net sales of $148.4 million.  
        


            Net sales for the second quarter of 1996 decreased by 51.3
        percent compared with the same period of 1995 primarily due to (1)
        reduced demand domestically and internationally for the company's
        children's lighted footwear and adult products and (2) domestically,
        a $10.6 million reduction in sales to Wal-Mart.  
        


            Net sales for the first six months of fiscal 1996 decreased by
        21.1 percent compared with the prior year period primarily due to
        (1) reduced worldwide demand for the company's children's lighted
        footwear and, to a lesser extent, adult products, partially offset
        domestically by an increase in sales of adult product to Wal-Mart
        and (2) a decrease in the average domestic selling price (which was
        accompanied by a decrease in the average unit cost).  
        


            International net sales represented 27.3 percent and 37.3
        percent of the company's total net sales for the six months ended
        May 31, 1996 and 1995, respectively.  
        


            Total sales of the company's children's lighted shoes decreased
        by $20.6 million and $32.7 million to $12.4 million and $32.8
        million during the second quarter and first half of 1996,
        respectively, compared with the same periods in 1995.  
        


            Domestic sales of children's lighted product decreased by $10.9
        million and $20.1 million in the second quarter and first half of
        1996, respectively, compared with the same periods in 1995 due to a
        reduction in both volume and average selling price per pair.  
        


            Internationally, children's lighted sales decreased by $9.7
        million and $12.6 million, principally due to reduced volume in
        Europe and Asia, in the quarter and six months ended May 31, 1996,
        respectively, compared with the same periods in 1995.  
        


            The gross margin for the second quarter and first half of 1996
        decreased to 25.2 percent and 29.2 percent from 31.6 percent and
        30.8 percent during the comparable periods in 1995, respectively.  
        


            These decreases were primarily due to a decline in international
        gross margins to 18.4 percent and 26.6 percent in the second quarter
        and first half of 1996, respectively, from 39.3 percent and 34.1
        percent in the comparable 1995 periods principally as a result of an
        increase in reserves for slow moving and discontinued lighted
        inventory recorded in the second quarter of fiscal 1996.  
        


            Total selling, general and administrative expenses decreased by
        $12.0 million, or 36.9 percent, to $20.5 million in the second
        quarter of 1996 and decreased by $21.5 million, or 32.9 percent, to
        $43.9 million in the first half of 1996 compared with the respective
        prior year periods.  
        


            Domestic selling, general and administrative expenses declined
        by $9.6 million, or 39.5 percent, to $14.7 million in the second
        quarter of 1996 and by $17.0 million, or 34.6 percent, to $32.2
        million in the first half of 1996 from the comparable prior year
        periods.  
        


            International operating expenses decreased by $4.5 million, or
        27.8 percent, to $11.7 million compared with $16.2 million in the
        first half of 1995.  In the first half of fiscal 1996, the overall
        reduction in expenses was principally due to the benefits realized
        from the implementation of the company's 1995 corporate
        reorganization plan.  
        


           Cash and cash equivalent balances increased by $10.4 million from
        Nov. 30, 1995 to $46.3 million at May 31, 1996 primarily due to a
        reduction in working capital partially offset by the funding of the
        1996 first half operating loss.
        


            During the first half of 1996, inventory decreased from $51.7
        million (5.3 million pairs) at Nov. 30, 1995 to $37.2 million (3.9
        million pairs) at May 31, 1996 due to delivery of substantially all
        of the balance of Wal-Mart's 1995 minimum purchase commitment in the
        first half of fiscal 1996 and the company's continuing efforts to
        effectively manage inventory levels.  
        


            Accounts receivable decreased from $46.6 million at Nov.  30,
        1995 to $34.6 million at May 31, 1996 principally due to reduced
        sales.  
        


            At June 30, 1996, the company had a combined domestic and
        international order backlog of $51.8 million, $37.4 million of which
        is primarily for new in-line products scheduled to ship in the July
        and August period and $14.0 million of which is scheduled to ship in
        the company's fourth quarter.  
        


            The combined backlog at June 30, 1995 was $102.9 million, $68.0
        million of which was scheduled to ship in the July and August 1995
        period and $32.7 million of which was scheduled to ship in the
        fourth quarter of 1995.  
        


            The lower backlog at June 30, 1996 is principally due to (1) the
        inclusion in the backlog of June 30, 1995 of $21.1 million of orders
        under the company's agreement with Wal-Mart, (2) an approximate
        $19.5 million decrease in orders for children's lighted product and
        (3) reduced overall demand for the company's adult products.  
        


            Children's lights as a percentage of the total June 30, 1996 and
        1995 backlog, excluding Wal-Mart orders, were 32.0 percent and 43.5
        percent, respectively.  
        


            L.A. Gear designs, develops and markets a broad range of quality
        athletic and lifestyle footwear for adults and children.


        
                         L.A. GEAR INC. AND SUBSIDIARIES
                      Consolidated Statements of Operations

                    (in thousands, except per-share amounts)
                                  (unaudited)
        
                               Three months           Six months
                               ended May 31,         ended May 31,
                              1996     1995         1996       1995
        
        Net sales               $38,472   $79,014     $117,138   $148,406
        Cost of sales            28,774    54,044       82,886    102,696
         Gross profit             9,698    24,970       34,252     45,710
        
        Selling, general
          and administrative
          expenses               20,517    32,544       43,913     65,382
        Litigation settlement
          income, net            (1,955)   (1,775)      (1,955)    (1,869)
        Interest expense, net       521       415        1,134        742   
         Loss before minority
           interest              (9,385)   (6,214)      (8,840)   (18,545)
        Minority interest         1,905       303        2,459        992
        
         Net loss                (7,480)   (5,911)      (6,381)   (17,553)
        
        Dividends on mandatorily
          redeemable Series A
          Preferred Stock        (1,002)   (1,916)      (3,044)    (3,791)
        Dividends on Series B
          Preferred Stock        (1,108)       --       (1,108)        --
         Loss applicable to
           common stock         $(9,590)  $(7,827)    $(10,533)  $(21,344)
        Loss per common share
          before preferred
          dividends             $ (0.33)  $ (0.26)    $  (0.28)  $  (0.77)
        Loss per common share   $ (0.42)  $ (0.34)    $  (0.46)  $  (0.93)
        
        Weighted average
          common shares
          outstanding            22,937    22,937       22,937     22,937
        
        
                         L.A. GEAR INC. AND SUBSIDIARIES
                     Selected Consolidated Balance Sheet Data

                                 (in thousands)
        
                                       May 31,           Nov. 30,
                                        1996               1995
                                    (unaudited)
        
        Cash and cash equivalents         $ 46,337           $ 35,956   
        Accounts receivable, net            34,595             46,630
        Inventories                         37,169             51,677
        Working capital                     97,045            103,999
        Convertible subordinated
          debentures                        50,000             50,000
        Mandatorily redeemable Series A
          Preferred Stock plus
          accrued and unpaid dividends          --            107,746
        Accumulated deficit               (179,814)          (169,281)
        Shareholders' equity (deficit)      59,437            (40,627)
        

CONTACT:  L.A. Gear Inc., Santa Monica
                  Victor Trippetti, 310/581-7446


CAJUN COOPERATIVES WANT COURT TO DECLARE POWER CONTRACTS NULL OR NOT ASSIGNABLE


        


            BATON ROUGE, La. -- July 15, 1996 -- Ten Louisiana
        electric cooperatives are asking a federal bankruptcy court to
        declare that their wholesale power supply contracts are null or, if
        valid, not assignable to another party without the cooperatives'
        permission.  The move is part of the cooperatives' efforts to
        protect their customers from excessively high electric rates which
        would result from the court-appointed trustee's plan to bring Cajun
        Electric Power Cooperative, Inc.
, out of bankruptcy.  
        


            The motion for a declaratory judgment was filed July 15 in the
        U.S.  District Court, Middle District of Louisiana, by the Cajun
        Electric Members Committee against Ralph R.  Mabey, trustee for
        Cajun in the Chapter 11 bankruptcy case (Civil Action No.  94-2763-
        B2, Bankruptcy Case No.  94-11474).  
        


            The legal status of the contracts lies at the heart of the Cajun
        bankruptcy case, said David Kleiman, an attorney for the Members
        Committee.  "Bidders are making offers for the non-nuclear assets
        and the market represented by the all-requirements power supply
        contracts of the 12 cooperatives which comprise Cajun.  Ultimately
        these offers would be paid for through whatever wholesale rates are
        established.  Our legal standing under these contracts is the key to
        protecting 1 million people across the state from being saddled with
        excessively high electricity costs for decades to come."  
        


            The Members' filing approaches the issue on several fronts, such
        as: (1) the contracts are null and void because they were not
        approved by the Louisiana Public Service Commission, (2) even if
        valid, the contracts cannot be assigned to anyone else without the
        permission of the member cooperatives, and (3) the trustee's plan is
        a poorly disguised attempt to create a new company -- on paper only
        -- which would illegally assume the contracts and strip the Members
        of their rights under the contracts and the Cajun Electric bylaws.  
        


            The Members Committee informed the trustee in January that the
        contracts are not assignable and explained that any prospective
        bidder who wants to supply power to the Members would have to
        negotiate new power supply agreements, Kleiman said.  "This is an
        issue that has been pending for some time, but the trustee's action
        -- and that of any other party wishing to acquire the contracts
        -- makes it important to push for a ruling at this stage in the
        bankruptcy process,"  Kleiman said.  "We have strong precedent in
        the litigation of a similar case to show that the contracts cannot
        be assigned to anyone else without the cooperatives' permission."  
        


            To date, four reorganization plans have been filed with the
        bankruptcy court.  The Members Committee has joined with
        Southwestern Electric Power Company and Entergy Gulf States
        (formerly Gulf States Utilities Company) to file one of the plans,
        which provides significant value to the estate while proposing more
        competitive wholesale rates to the member cooperatives than the
        competing plans. The Members Committee includes 10 of the 12 Cajun
        cooperatives: Beauregard Electric Cooperative, Inc., Concordia
        Electric Cooperative, Inc., Dixie Electric Membership Corp.,
        Jefferson Davis Electric Cooperative, Inc., Northeast Louisiana
        Power Cooperative, Inc., Pointe Coupee Electric Membership Corp.,
        South Louisiana Electric Cooperative Association, Southwest
        Louisiana Electric Membership Corp., Valley Electric Membership
        Corp.  and Washington-St.  Tammany Electric Cooperative, Inc.  
        


            Cajun Electric is a generating and transmission cooperative.  In
        1976, the 12 member cooperatives which comprise Cajun entered into
        wholesale power supply contracts, agreeing to purchase their power
        requirements from Cajun until 2021.  In 1990, nine of the
        cooperatives extended their contracts to 2026.  
        


        CONTACT:  Dann Pecar Newman & Kleiman, Professional Corp.
                  David H. Kleiman or James P. Moloy, 317/632-3232