PacifiCorp Supports Big Rivers Bankruptcy Filing
PORTLAND, Ore., Sept.25, 1996 - PacifiCorp (NYSE: PPW) said today that the bankruptcy filing by Big
Rivers Electric Corporation of Henderson, Ky., should smooth the way for implementing the partnership
between the two utilities.
"We view the filing for Chapter 11 bankruptcy protections as a positive step because it addresses some of the
contingencies standing in the way of moving forward with the omnibus agreement we signed last month," said
Don Furman, president of PacifiCorp Power Marketing, Inc., a non-regulated subsidiary of PacifiCorp, based
in Portland.
PacifiCorp and Big Rivers are working toward a long-term agreement under which PacifiCorp would pay Big
Rivers $30.1 million per year to lease and operate Big River's power plants over the next 25 years, providing
power to Big Rivers for its four distribution cooperative members while PacifiCorp sells the excess capacity
of the plants.
"This step will help ensure that Big Rivers and PacifiCorp complete this important transaction in a timely
fashion so we can forge ahead in a partnership that will help western Kentucky continue to grow," Furman
said.
Furman said PacifiCorp was particularly pleased that Big Rivers and the two largest users of Big Rivers
power, the NSA and Alcan aluminum smelters in western Kentucky, had reached an understanding to support
the partnership being developed by PacifiCorp and Big Rivers.
Furman said the bankruptcy filing would not affect the interim marketing agreement under which PacifiCorp
and Big Rivers are jointly marketing excess capacity of Big Rivers' power plants. The joint marketing started
April 1. PacifiCorp also will continue its economic development activities in western Kentucky, under another
interim agreement reached earlier this year.
"These interim agreements already have yielded significant economic benefits for both PacifiCorp and Big
Rivers," Furman said.
SOURCE PacifiCorp /CONTACT: Media, Dave Kvamme, 503-464-6272, or investors, Scott Hibbs,
503-731-2123, both of PacifiCorp/
Big Rivers Files for Bankruptcy Protection as Way to Implement Partnership With PacifiCorp
LOUISVILLE, Ky., Sept. 25, 1996 - With its two largest electricity users and primary creditor in its corner,
Big Rivers Electric Corporation filed for Chapter 11 bankruptcy protection today, saying the move represents
the best way to make its partnership with PacifiCorp (NYSE: PPW) a reality.
Under Chapter 11, Big Rivers is automatically authorized to operate in the ordinary course of business. Big
Rivers has filed motions asking for immediate approval of certain aspects of its operations to ensure
day-to-day operations continue as usual. The motions are standard in Chapter 11 proceedings.
"Bankruptcy is a necessary tool to solidify the partnership between Big Rivers and PacifiCorp - a partnership
that clearly benefits our customers, our employees and the economy of western Kentucky," said Al Robison,
Big Rivers' acting general manager.
"We have known for some time that bankruptcy might have to be used as a tool to help implement a lasting
resolution to the company's challenges. Today, we are at the point where it is necessary to use that tool."
Robison added that the support for the partnership from the utility's largest users - NSA and Alcan - and the
Rural Utilities Service further strengthens Big Rivers' case for reorganization through the bankruptcy process.
The fact that our largest users and primary creditor are joined with us in supporting this partnership clearly
bolsters our plan of reorganization," Robison said. "We also hope it will help this process proceed more
quickly so that we can move forward in formulating a plan and in obtaining regulatory approvals."
Big Rivers filed the bankruptcy petition today in U.S. Bankruptcy Court. The case is assigned to the court's
Owensboro Division.
"We are confident that when the potential of our partnership with PacifiCorp is fully understood, Big Rivers
will be able to move ahead with PacifiCorp in the business of making electricity and powering western
Kentucky," said Sandra Wood, president of Big Rivers' board of directors. "We plan to move aggressively in
bankruptcy court to make this happen."
PacifiCorp Power Marketing President, Don Furman said his company also sees bankruptcy as a tool to help
facility the partnership.
"This step will help ensure that Big Rivers and PacifiCorp complete this important transaction so we can forge
ahead in a partnership that will help western Kentucky continue to grow," he said.
Robison said that during the bankruptcy process, Big Rivers will keep the Public Service Commission
informed of the company's progress. At the appropriate time during the reorganization process, Big Rivers will
seek approval from the commission of the rates contemplated by the PacifiCorp transaction.
The petition was accompanied by an agreed order, pending court approval, which states that Big Rivers and
its primary creditor, the Rural Utilities Service, have worked out a pact to allow the utility to continue using
income for normal business operations.
"We don't see this filing in any way affecting the way we do business each day because we have outlined a
resolution that makes the most sense for our company and its customers," Robison said. "Bankruptcy is a tool
to implement the PacifiCorp partnership through a plan of reorganization. With a financially strong partner, I
have every confidence that our partnership with PacifiCorp will stand the scrutiny of the court and other
constituencies that may have questions.
In August, Big Rivers and PacifiCorp Holdings, Inc., a non- regulated subsidiary of PacifiCorp, signed an
omnibus agreement. The two companies are working toward a long-term agreement in which a PacifiCorp
Holdings' subsidiary would pay Big Rivers $30.1 million per year to lease and operate the utility's power
plants for 25 years. Big Rivers will continue to own the power plants while providing transmission and other
services to its four distribution cooperatives.
The arrangement requires approvals from Kentucky and federal regulators as well as the boards of Big Rivers,
the distribution cooperatives and PacifiCorp.
Big Rivers serves 91,000 customers through its four distribution cooperatives, Henderson Union Electric
Cooperative, Green River Electric Corporation, Jackson Purchase Electric Cooperative Corporation and
Meade County Rural Electric Cooperative Corporation.
PacifiCorp has 1.8 million retail electric customers in seven western states and Australia. The company
conducts wholesale transactions with 65 utilities in 11 western states.
SOURCE PacifiCorp -0- 09/25/96 /CONTACT: Susan Sauls of Big River Electric Corp., 502-827-2561/
Braun's Fashions Corporation Reports Improved Second Quarter Operating Results
MINNEAPOLIS, MN Sept. 25, 1995 - Braun's Fashions Corporation (Nasdaq-NNM: BFCI) today announced
results for the second quarter ended August 31, 1996. Sales totaled $22,777,000, up 6% from $21,506,000 for
the same period last year (increase due primarily to liquidation sales in 46 closing stores). Same store sales in
the 172 continuing stores (excluding stores being closed as part of the Company's Chapter 11 reorganization)
increased 2%. The net loss for the second quarter (excluding reorganization expenses and adjusted to reflect
the appropriate tax rate) was $781,000 or $.21 per share compared to a net loss of $1,416,000 or $.37 per
share last year, a $.16 per share operating improvement. The total net loss for the quarter (including
reorganization expenses) was $9,537,000 or $2.51 per share.
Net sales for the six months ended August 31, 1996 were $44,281,000, an increase of 2% over the same
period last year. Same store sales in the 172 continuing stores (excluding stores being closed as part of the
Company's Chapter 11 reorganization) increased 1%. The net loss for the first six months (excluding
reorganization expenses and adjusted to reflect the appropriate tax rate) was $1,014,000 or $.27 per share,
compared to a net loss for the same period last year of $2,075,000 or $.55 per share, a $.28 per share increase
from operations. The total net loss for the six months ended August 31, 1996 (including reorganization
expenses) was $9,755,000 or $2.57 per share.
The Company recorded reorganization expenses totaling $9,070,000 as a result of its July 2, 1996 Chapter 11
filing. These costs relate primarily to lease rejection claims and losses due to the closing of 46 unprofitable
stores, extra-ordinary markdowns to bring merchandise inventories to the levels needed to support fewer
stores, professional fees and the write-off of deferred financing costs. Management expects that additional
reorganization expenses of $1 to $2 million will be incurred in the third quarter.
Sales and gross margins in the 172 continuing stores were significantly improved in the second quarter
reflecting the Company's emphasis on the more profitable categories of its merchandise mix and an increased
concentration on direct import merchandise. Early third quarter results have continued this same trend.
Nicholas H. Cook, Chairman and Chief Executive Officer stated, "Closing our unprofitable stores has enabled
us to focus our attention on a healthy core group and, as a result, we expect these stores to be more competitive
in the challenging women's apparel marketplace."
The Company's Chapter 11 action is proceeding satisfactorily. The Plan of Reorganization and Disclosure
Statement that was filed on July 18, 1996 was amended on August 27. A confirmation hearing to approve the
Amended Plan of Reorganization has been tentatively scheduled for October 25, 1996. Mr. Cook commented,
"We are pleased with the timely progress of our Chapter 11 reorganization and anticipate that we will emerge
from bankruptcy in the very near future."
Braun's Fashions Corporation is based in Minneapolis, Minn., and is a specialty retailer of women's fashions.
Braun's currently has 172 continuing stores in 20 states, primarily in the Midwest and Pacific Northwest.
Financial Highlights
(Dollars In thousands, except per share amounts)
(Unaudited)
Three Months Ended
August 31, 1996 August 26, 1995
Net sales $22,777 $21,506
Net income (loss) $(9,537)(1) $(1,416)
Net income (loss) per common share (2) $(2.51) $(0.37)
Net income (loss) per common share
excluding reorganization expenses $(0.21) $(0.37)
Three Months Ended
August 31, %of August 26, %of
1996 Sales 1995 Sales
Net sales $22,777 100.0 $21,506 100.0
Cost of sales 17,291 75.9 16,411 76.3
Gross profit 5,486 24.1 5,095 23.7
Selling, general and administrative 5,857 25.7 6,043 28.1
Depreciation and amortization 666 2.9 789 3.7
Operating income (loss) (1,037) (4.5) (1,737) (8.1)
Interest, net 147 0.7 344 1.6
Loss before reorganization expenses
and income taxes (1,184) (5.2) (2,081) (9.7)
Reorganization expenses 9,070 39.8 -- --
Income tax provision (benefit) (717) (3.1) (665) (3.1)
Net income (loss) $(9,537) (41.9) $(1,416) (6.6)
Net income (loss) per common share (2) (2.51) -- $(0.37) --
Net income (loss) per common share
excluding reorganization expenses $(0.21) -- $(0.37)
(1) Includes $9,070,000 of reorganization expenses as a result of the
Company's July 2, 1996 Chapter 11 Bankruptcy filing.
(2) Based on the weighted average number of outstanding shares of
common stock and common stock equivalents of 3,793,312 for the period
ended August 31, 1996 and 3,791,272 for the period ended August
26, 1995.
Financial Highlights
(Dollars In thousands, except per share amounts)
Six Months Ended
August 31, 1996 August 26, 1995
Net sales $44,281 $44,473
Net income (loss) $(9,755)(1) $(2,075)
Net income (loss) per common share (2) $(2.57) $(0.55)
Net income (loss) per common share
excluding reorganization expenses $(0.27) $(0.55)
Six Months Ended
August 31, %of August 26, %of
1996 Sales 1995 Sales
Net sales $44,281 100.0 $43,473 100.0
Cost of sales 32,089 72.5 32,278 74.2
Gross profit 12,192 27.5 11,195 25.8
Selling, general and administrative 11,793 26.6 12,109 27.9
Depreciation and amortization 1,429 3.2 1,575 3.6
Operating income (loss) (1,030) (2.3)
(2,489) (5.7)
Interest, net 506 1.1 654 1.5
Loss before reorganization expenses
and income taxes (1,536) (3.4)
(3,143) (7.2)
Reorganization expenses 9,070 20.5 -- --
Income tax provision (benefit) (851) (1.9)
(1,068) (2.4)
Net income (loss) $(9,755) (22.0)
$(2,075) (4.8)
Net income (loss) per common share (2) $(2.57) -- $(0.55) --
Net income (loss) per common share
excluding reorganization expenses $(0.27) -- $(0.55) --
(1) Includes $9,070,000 of reorganization expenses as a result of the
Company's July 2, 1996 Chapter 11 Bankruptcy filing.
(2) Based on the weighted average number of outstanding shares of
common stock and common stock equivalents of 3,793,312 for the period
ended August 31, 1996 and 3,791,272 for the period ended August
26, 1995.
SOURCE Brauns Fashions Corporation -0- 09/25/96 /CONTACT: Stephen W. Clark, Vice President and
Chief Financial Officer of Braun's Fashions Corporation, 612-551-5106/ (BFCI)