Work Recovery, Inc. Announces Fiscal 1996 Results
TUCSON, Ariz., Oct. 7, 1996 -- Work Recovery, Inc. (WRI) announced its financial results for the fiscal
year ended June 30, 1996. The Company reported a net loss of $15,523,000 for fiscal 1996 with a net
loss per share of $.35, compared to a net loss of $50,849,000 and a $1.43 loss per share for fiscal 1995.
The net loss for fiscal 1996 includes additional bad debt reserves, impairment reserves, and
reorganization items. The Company also reported net revenues of $5,341,000 for fiscal 1996.
Interest in the Company's technology, ERGOS(R), has continued to increase over the first quarter of fiscal
1997. In August, the Company hired James Maki as National Director of Sales and Marketing. With a new
salesforce and sales leadership the Company is optimistic that it can significantly increase sales during
the remainder of fiscal 1997.
Acting President and Chief Executive Officer Dorcas R. Hardy said, "Although our work is far from being
done, we are encouraged with the progress the Company has made under Chapter 11." Hardy also said,
"We still expect to meet our timetable of the end of the calendar year to emerge from bankruptcy and
restore shareholder value."
Work Recovery, Inc. manufactures, markets and licenses objective functional capacity assessment
technology, ERGOS(R), for the evaluation of injured workers.
/CONTACT: Jake Mendoza of Work Recovery, Inc., 520-322-6634/ (WORK)
Cambridge Biotech Corporation Reports On Court Actions
WORCESTER, Mass., Oct. 7, 1996 -- Cambridge Biotech Corporation (NASD OTC Bulletin Board:
CBCXQ) reported today that the First Circuit Court of Appeals has temporarily stayed the District court's
order upholding CBC's reorganization plan. The stay was issued for the sole purpose of maintaining the
status quo pending review by the Court of Appeals. Institut Pasteur and Pasteur Sanofi Diagnostics
(Pasteur) sought a stay from the Court of Appeals after the District Court denied Pasteur's request for a
stay. CBC has filed an emergency motion with the Court of Appeals requesting that the temporary stay be
lifted.
These actions follow a decision on September 27 by the District Court upholding CBC's reorganization
plan and dismissing an appeal by Pasteur. The U.S. Bankruptcy Court has previously confirmed the plan
and overruled objections by Pasteur.
Cambridge Biotech Corporation, which filed for protection under Chapter 11 of the United States
Bankruptcy Code on July 7, 1994, is a therapeutics and diagnostics company focusing on infectious
diseases and cancer. The Company is developing and commercializing products which stimulate the
immune system for use in treating certain infectious diseases and specific cancers. The therapeutic
products include the StimulonTM family of adjuvants, the most advanced of which, QS-21, is in clinical
development through corporate and academic partners, and proprietary vaccines. The proprietary
vaccines include a feline leukemia vaccine currently on the market and, in development, human vaccines
for pneumococcal infections, malaria and tick borne diseases, and animal vaccines for bovine mastitis
and canine Lyme disease. Cambridge Biotech's diagnostic business is primarily focused on retroviral and
Lyme diseases.
Statements in this release which relate to plans and objectives of management for future operations of
CBC and Aquila Biopharmaceuticals, Inc. or which otherwise relate to future performance are forward
looking statements. Actual results may differ from those projected as a result of CBC's ability to emerge
from bankruptcy, product demand, pricing, market acceptance, economic conditions, intellectual property
issues, competitive products, risks in product and technology development, and other risks identified in
the Company's Securities and Exchange Commission filings.
SOURCE Cambridge Biotech Corporation /CONTACT: Alison Taunton-Rigby, Ph.D.President, Chief
Executive Officer of Cambridge Biotech Corporation, 508-797-5777 or Robert Gottlieb, Senior Vice
President of Feinstein Partners, Inc., 617-577-8110/
Fruehauf Trailer announces Chapter 11 filing; director changes
INDIANAPOLIS--October 7, 1996--Fruehauf Trailer Corporation (NYSE:FTC) announced today that the
Company and certain of its subsidiaries have filed voluntary petitions for relief under chapter 11 of the
U.S. Bankruptcy Code in the District of Delaware. The filings will restore liquidity by permitting
improved financing arrangements and relieving the Company from certain funding requirements. These
filings did not include the Company's Mexican operating subsidiary, Fruehauf de Mexico S.A. de C.V.
The Company announced a $55 million debtor-in-possession financing facility provided by an affiliate of
Cerberus Partners, L.P. The line of credit, which is subject to court approval, will be utilized to repay
indebtedness under the Company's Revolving Credit Facility and meet immediate and future inventory
needs, satisfy existing customer and employee obligations, pay promptly new vendor invoices and operate
its business. In addition, Fruehauf will continue to manufacture, service and distribute trailers and parts
throughout its Company-owned branch and authorized independent dealer network.
Derek L. Nagle, President, commented: "We will continue to provide the highest possible level of service
to our customers, including warranty and aftermarket service and parts. The new financing is intended to
provide the necessary liquidity to continue business during the reorganization."
Director Changes
The Company also announced the resignations of Raymond J. Dempsey, Anthony Miller and Richard
Nevins from the Board of Directors, effective with the consummation of the debtor-in-possession facility.
Thomas B. Roller, Timothy J. Wiggins, William P. Panny and Marvin B. Rosenberg previously resigned
from the Board. The Company will have a four member Board consisting of Chriss W. Street, Worth W.
Frederick and two additional directors to be appointed to fill the vacancies.
Fruehauf Trailer Corporation is a manufacturer of truck trailers, producing, marketing, and servicing the
industry's widest range of dry freight van, refrigerated van, platform, dump and liquid and dry bulk tank
trailers. Among the largest suppliers of trailer parts in North America, Fruehauf products are sold
throughout the truck trailer industry's largest Company-owned dealer and authorized independent dealer
network in North America.
CONTACT: Fruehauf Trailer Corporation, Indianapolis, Gregory G. Fehr, Kenneth A. Minor, Michael D.
Picchi, (317) 630-3000
Best Products to close 81 stores
RICHMOND, Va.--Oct. 7, 1996--Best Products Co., Inc. (NASDAQ: BESTQ) today announced plans to
close 81 of its 169 Best stores and three of its four distribution centers during the next several months.
The affected stores are located throughout the country, with a significant number of closings taking place
in Texas, Colorado, Oregon, California and Washington state.
Best Chairman and Chief Executive Officer Daniel H. Levy said, "We regret that many dedicated
associates who have worked diligently on behalf of Best Products are affected by this decision. However,
we have carefully studied our business and we do not believe these locations will contribute significantly
to the company's future profitability."
Levy said the company has decided to close a substantial number of stores now rather than closing stores
in stages. "We believe it's in the best interests of the company and its associates to finalize closing plans
now and remove questions about which locations will continue to operate."
The closing announcement follows Best Products' filing for Chapter 11 under the United States
Bankruptcy Code September 24.
The company said it expects "going-out-of-business" sales will begin at closing stores during the second
half of October and end in late December. About 2,000 full-time employees and 2,500 part-time
employees will be affected. Each store employs about 25 full-time and 30 part-time employees. Best
Products employs about 5,500 employees in its other operations.
These stores will be closing:
Arizona: Tucson (East), Tucson (West) and Yuma California: Anaheim, Campbell, Cerritos, La Mesa,
Mission Viejo, Montclair, Mountain View, Northridge, Oceanside, Pinole, Pleasant Hill, Pleasanton,
Riverside, Sacramento (South), San Bernardino, San Jose, San Leandro, Santa Ana, Stockton, Thousand
Oaks, Torrance, Ventura, Westminster and West Covina
Colorado: Aurora, Boulder, Denver (Southwest), Fort Collins, Lakewood, Littleton and Westminster
Idaho: Lewiston Michigan: Kentwood and Wyoming Montana: Great Falls and Missoula Nevada:
Henderson and Las Vegas New Jersey: Cherry Hill, Eatontown and Mays Landing N. Mexico: Farmington
N. Carolina: Raleigh N. Dakota: Bismark and Grand Forks Ohio: Sandusky Oregon: Beaverton, Eugene,
Gresham, Milwaukie, Salem and Tannasbourne
Penn.: Springfield S. Dakota: Rapid City and Sioux Falls Texas: Amarillo, Austin, Corpus Christi, El
Paso, Killeen, Lubbock, San Antonio (North) and San Antonio (West)
Virginia: Springfield Wash.: Bellevue, Bellingham, Everett, Federal Way, Lynnwood, Olympia, Puyallup,
Silverdale, Spokane, Spokane Valley, Tacoma, Tri- Cities and Tukwila
Wyoming: Cheyenne The distribution centers being closed include two contract operations in the Denver,
Colo. and Seattle, Wash. markets and a company-owned operation in Las Vegas, Nev. About 75
employees work in those facilities.
Best Products, a specialty retailer offering category-dominant assortments of jewelry and home
furnishings, now operates 169 Best stores in 23 states. Following the closings, Best Products will
continue to operate 88 stores in 17 states.
CONTACT: Best Products Inc. Financial Information: Nora Crouch, 804/261-2179 Harry Katz,
804/261-2052 Media Contact: Ross Richardson, 804/261-2157
FoxMeyer Health Corporation completes the sale of its interest in FoxMeyer Canada Inc.
DALLAS, TX--October 7, 1996--FoxMeyer Health Corporation (NYSE: FOX) today announced that the
Company has completed the previously announced sale of its interest in FoxMeyer Canada Inc. to Gordon
Capital Corporation and Marleau, Lemire Securities Inc., as underwriters. Under the terms of the sale,
FoxMeyer Health issued to the underwriters 14.25 million special warrants with a purchase price of
C$4.85 per warrant, each of which is convertible into one share of common stock of FoxMeyer Canada
Inc. currently owned by or subject to an option held by FoxMeyer Health Corporation. FoxMeyer Canada
will receive C$14.4 million (US$10.5 million) from the exercise of options held by FoxMeyer Health
Corporation, which will be paid from the proceeds of the sale to the underwriters.
The $50.4 million proceeds from the sale have been deposited into escrow, pending the entry of a
stipulation and agreed order of the United States Bankruptcy Court presiding over the Chapter 11
proceedings of FoxMeyer Health's wholly-owned subsidiary, FoxMeyer Drug Company. The order,
which has been approved by the creditors' committee in the Chapter 11 proceedings, once entered by the
court which is expected to occur on October 15, 1996, will provide for the immediate distribution of at
least $4 million of the proceeds from the sale to FoxMeyer Health. The proceeds total approximately
$36.7 million after the payment of the $10.5 million option exercise price and expenses of the sale. Of the
$36.7 million total, $4 million will be paid to FoxMeyer Health, $25.2 million will be held in escrow for
a 90-day standstill period and then may be released after a forty-five day notice period. The remaining
$7.5 million will be subject to a hold-back in favor of the special warrant purchasers. The $7.5 million
hold-back will be released if a prospectus of FoxMeyer Canada, to be filed in connection with the sale of
the special warrants, is receipted by the applicable Canadian regulatory authorities no later than January
30, 1997.
Separately, since the announcement of its proposed sale of its US HealthData Interchange, Inc. subsidiary
to FoxMeyer Canada, FoxMeyer Health has received several inquiries from other possible buyers and is
in discussions with all parties regarding the sale.
FoxMeyer Health Corporation is a leading provider of health care products and information-based
services in North America.
CONTACT: FoxMeyer Health Corporation Edward Massman Chief Financial Officer (214) 446-4866 or
Morgen-Walke Associates Betsy Brod/Alex Gleeson (212) 850-5600
United States Bankruptcy Court Northern District of Texas: NeoStar Retail Group Inc., Babbages's Inc.
and Software Etc. Stores Inc.
DALLAS, TEXAS -- Oct. 7, 1996 --
U.S. Courthouse United States Bankruptcy Court
1100 Commerce St., Room 12A24 Northern District of Texas
Dallas, TX 75242-1496
In RE:
NEOSTAR RETAIL GROUP INC., 75-2559376 Case No. 396-36648-SAF-11
BABBAGE'S INC., 75-1864488 and Case No. 396-36649-SAF-11
SOFTWARE ETC. STORES Inc., 41-1598682 Case No. 396-36650-SAF-11
Debtors. Date Filed: 9/16/96
NOTICE OF COMMENCEMENT OF CASE UNDER BANKRUPTCY CODE CHAPTER 11
MEETING OF CREDITORS, AND FIXING OF DATES (Corporation/Partnership
Case)
------------------------------------------------------------------
DATE/TIME/LOCATION ADDRESS OF ATTORNEY FOR
OF MEETING DEBTOR DEBTOR
OF CREDITORS ------ ------
------------ 2250 William D. Tate Ave. Deborah D. Williamson
Oct. 24, 1996 at 2 p.m. Grapevine, TX 76051 COX & SMITH
Office of the U.S. Trustee 112 E. Pecan St.
U.S. Courthouse Suite 1800
1100 Commerce St. San Antonio, TX 78205
Room 7-A-23 Tel: 210/554-5500
Dallas, TX 75242-1496
DEADLINE TO FILE A PROOF OF CLAIM: Creditors Other Than
Governmental Units: 01/22/97; Governmental Units: 180 days from the
date of Order for Relief
COMMENCEMENT OF CASE. A petition for reorganization under
chapter 11 of the Bankruptcy Code has been filed in this court by or
against the debtor named above, and an order for relief has been
entered. You will not receive notice of all documents filed in this
case. All documents filed with the court, including lists of the
debtor's property and debts, are available for inspection at the
Clerk's office.
CREDITORS MAY NOT TAKE CERTAIN ACTIONS. A creditor is anyone to
whom the debtor owes money or property. Under the Bankruptcy Code,
the debtor is granted certain protection against creditors. Common
examples of prohibited actions by creditors are contacting the debtor
to demand repayment, taking action against the debtor to collect
money owed to creditors or to take property of the debtor, and
starting or continuing foreclosure actions or repossessions. If
unauthorized actions are taken by a creditor against a debtor, the
court may penalize that creditor. A creditor who is considering
taking action against the debtor or the property of the debtor should
review Sec. 362 of the Bankruptcy Code and may wish to seek legal
advice. If the debtor is a partnership, remedies otherwise available
against general partners are not necessarily affected by the
commencement of this partnership case. The staff of the Clerk of
Court is not permitted to give legal advice.
MEETING OF CREDITORS. The debtor's representative, as specified
in Bankruptcy Rule 9001(5), is required to appear at the meeting of
creditors on the date and at the place set forth above for the
purpose of being examined under oath. Attendance by creditors at the
meeting is welcomed, but not required. At the meeting, creditors may
examine the debtor and transact such other business as may properly
come before the meeting. The meeting may be continued or adjourned
from time to time by notice at the meeting, without further written
notice to the creditors.
PROOF OF CLAIM. Schedules of creditors have been or will be
filed pursuant to Bankruptcy Rule 1007. Any creditor holding a
scheduled claim which is not listed as disputed, contingent, or
unliquidated as to amount may, but is not required to, file a proof
of claim in this case. Creditors whose claims are not scheduled or
whose claims are listed as disputed, contingent, or unliquidated as
to amount and who desire to participate in the case or share in any
distribution must file their proofs of claim by the date set forth
above labeled "Filing Claims." A creditor who desires to rely on the
schedule of creditors has the responsibility for determining that the
claim is listed accurately. The place to file a proof of claim,
either in person or by mail, is the Clerk's Office at the Court
address at the top of this notice. Proof of claim forms are
available in the Clerk's Office of any U.S. Bankruptcy Court.
PURPOSE OF CHAPTER 11 FILING. Chapter 11 of the Bankruptcy Code
enables a debtor to reorganize pursuant to a plan. A plan is not
effective unless approved by the court at a confirmation hearing.
Creditors will be given notice concerning any plan, or in the event
the case is dismissed or converted to another chapter of the
Bankruptcy Code. The debtor will remain in possession of its
property and will continue to operate any business unless a trustee
is appointed.
DIRECT REQUESTS FOR COPIES TO: Techrite Copy Services Inc., 1100
Commerce St., Room 12A24, Dallas, TX 75242-1498, 214/651-6000, Fax:
214/651-6001.
Dated: Sept. 19, 1996 For the Court:
Tawana C. Marshall
Clerk of the U.S. Bankruptcy Court
CONTACT: Cox & Smith, San Antonio, Deborah D. Williamson, 210/554-5500