Clothestime announces third quarter financial results
ANAHEIM, Calif.--Nov. 29, 1996--The Clothestime Inc. (OTC:CTMEQ) on Friday
announced results for the third quarter ended Oct. 26, 1996.
Sales for the quarter were $46.4 million compared with $78.7 million last year. A
significant portion of the total sales reduction was due to the lower number of stores
this year as compared with last year. For the first nine months of Fiscal 1996, total
sales were $149.6 million compared with $240.4 million for the first nine months of
last year.
Currently, there are 357 stores as compared with 538 stores last year.
Operating loss for the quarter before reorganization charges was $2.3 million as
compared with a loss of $3.6 million for the same period last year. There was no
income tax benefit this year compared with an income tax benefit of $1.3 million last
year. The loss for the third quarter this year includes reorganization costs of $1.4
million, resulting in a net loss of $3.8 million. The loss per share was 27 cents this
year vs. a loss of 16 cents per share for the same quarter last year.
For the first nine months of Fiscal 1996, the operating loss before reorganization
charges was $6.7 million as compared with a loss of $11.3 million for the same
period last year. There was no income tax benefit this year compared with an income
tax benefit of $4.2 million last year.
The loss for the nine months this year includes reorganization costs of $7.1 million,
resulting in a net loss of $13.8 million. Loss per share was 97 cents this year as
compared with a loss per share of 50 cents last year.
Clothestime Stores currently operates 357 women's apparel stores in 17 states and
Puerto Rico, offering primarily in-season, moderately-priced sportswear, dresses and
accessories, emphasizing fashion at a discount from department and specialty stores.
The Clothestime Inc.
Summary Results of Operations (Unaudited)
(000's Omitted, Except Per Share Amounts)
13 Weeks - 3rd Quarter 39
Weeks Ended
Oct. 26, Oct. 28, Oct. 26,
Oct. 28,
1996 1995 1996
1995
Net Sales $46,402 $78,738
$149,561 $240,368
Loss Before Reorganization
Costs and Income Tax
Benefits $(2,346) $(3,649) $
(6,725)
$(11,266)
Net Loss $(3,764) $(2,299)
$(13,805) $ (7,098)
Loss Per Share $ (0.27) $ (0.16) $
(0.97) $ (0.50)
Average Shares
Outstanding 14,198 14,194
14,198
14,188
On Dec. 8, 1995, The Clothestime Inc., and five of its subsidiaries filed for protection
under chapter 11 of the U.S. Bankruptcy Code.
CONTACT: The Clothestime Inc., Anaheim Andrew G. Tepper, 714/779-5881, Ext.
2260
Eagle-Picher Announces Effective Date Of Reorganization Plan
CINCINNATI, OH - Nov. 29, 1996 - Eagle-Picher Industries (OTC: EPIHQ.U) today
announced that the Company's Plan of Reorganization (the "Plan") became effective as
of November 29, 1996.
Pursuant to the initial distribution under the Plan, ten-year debentures of the
reorganized Company in the principal amount of $250 million and all of the
outstanding shares of common stock of the reorganized Company were transferred to a
trust (the "PI Trust") which has been established to resolve and satisfy all present and
future asbestos and lead-related personal injury claims. The PI Trust also received
pursuant to the Plan cash in the approximate amount of $50 million, three-year notes
of the reorganized Company in the principal amount of approximately $18 million and
approximately $69 million in principal amount of other notes of the reorganized
Company which mature in 1998.
The Order confirming the Plan which was issued by both the United States District
Court and the United States Bankruptcy Court contains an injunction which precludes
holders of present and future asbestos or lead-related personal injury claims from
pursuing their claims against the reorganized Company. Those claims will be
channeled to the PI Trust. Pursuant to the Plan, asbestos-related property damage
claims asserted against the Company will be channeled to and resolved by a separate
trust (the "PD Trust") which will receive $3 million under the Plan.
It is anticipated that the initial distribution under the Plan will be made to holders of
prepetition unsecured claims within 10 days after the effective date, and a final
distribution to all unsecured claimants and to the PI Trust will be made when all
claims asserted in the chapter 11 cases (other than those claims channeled to the PI
Trust and the PD Trust) are resolved. Based upon certain assumptions, the Company
anticipates that holders of prepetition general unsecured claims (other than asbestos
and lead-related claims) ultimately will receive consideration having a value equal to
approximately 37% of their allowed claims, half of which is to be paid in cash and
half in three-year notes of the reorganized company.
In conjunction with the effective date of the Plan, the Company entered into a new
unsecured $60 million revolving credit facility with a group of banks. The facility has
a three-year term and can be utilized for both cash borrowings and for the issuance of
letters of credit.
As stated previously, the Company's existing equity security holders will not receive
any distribution under the Plan, and their shares were canceled as of the effective date
of the Plan.
SOURCE Eagle-Picher Industries /CONTACT: J. Rodman Nall of Eagle-Picher
Industries, Inc., 513- 721-7010/
Microlytics files for reorganization under Chapter 11
PITTSFORD, N.Y.--Nov. 29, 1996 Microlytics, Inc., a software development
company in Pittsford, N.Y., today announced that it and its subsidiary, Microlytics
Technology Co., Inc., late Wednesday afternoon filed voluntary petitions for
reorganization under Chapter 11 of the federal Bankruptcy Code in the United States
Bankruptcy Court for the Western District of New York, Rochester Division.
Under Chapter 11, a company continues to operate under Court protection from
creditors while seeking to work out a plan of reorganization. Microlytics which
presently employs about 10 people indicated that, as previously announced, it plans to
continue to support both its MicroPages(R), a full text retrieval product that was
recently licensed to Ameritech's Interactive Media Services Group for use in that
company's Internet site, and its strategic partners Seiko Instruments, Eurotronics and
Fuji Xerox with compression and linguistic technology.
Microlytics stated that its filings were in response to the commencement of several
lawsuits against it and its, previously announced, inability to service debt obligations
totaling $3.8 million all of which are in substantial default.
Microlytics and its subsidiary expect to file their schedules of assets an liabilities and
a statement of affairs with the Bankruptcy Court within the next 15 days. No date has
yet been set for the first meeting of creditors in the reorganization cases.
CONTACT: Microlytics, Inc. Mike McCourt, Vice President and General Manager
Tel: 716/248-9150, ext. 300. Fax: 716/248-3868 email: info@microlytics.com
Genesis Announces Preliminary Reorganization Plan for Imagex Services, Inc.
CHATTANOOGA, Tenn., Nov. 29, 1996 - Genesis Insurance & Financial Services,
Inc. (Nasdaq: GIFS) announced today its preliminary reorganization plan for Imagex
Services, Inc. that since its acquisition of over 53% of Imagex Services, Inc. through
its publicly announced conversion and agreement, the Company's internal
investigation and continuing due diligence has produced information which will affect
the manner in which Genesis will implement its turnaround program.
Genesis' CEO, Mr. Mohamed Khairy Mohamed Zayed, II, stated today that "While we
have been sending several thousands of dollars to vendors and to Imagex's CEO,
Andrew Cappocia, for distribution to other debtors and while we are currently
negotiating new equipment leases and developing plans for first quarter 1997 with
regards to opening new centers and vitalizing the two existing facilities which
currently have no operations due to the near bankruptcy condition of Imagex Services,
Inc. when we acquired the company some weeks ago, we have obtained very
disturbing information which will more than likely result in our changing our original
strategy with Imagex Services, Inc. and which will include a request for the
resignation of Imagex CEO Andrew Cappocia whereby the company would
immediately replace him with one or more capable and credible executors to manage
the operations of the medical services provider once they are re-activated as
going-concerns."
Genesis Insurance & Financial Services, Inc. intends to continue negotiating
equipment leases and working with creditors but because of the severe financial
condition and other activities which have occurred within Imagex's upper
management, Genesis may elect to temporarily place Imagex into reorganization
(Chapter 11) rather than a full fledged bankruptcy liquidation in order to satisfy all
creditors under court supervision while providing a green light for Genesis to
introduce its capitalization and financial support without the threat of unfair financial
burden created by what may be later deemed as gross negligence at best or criminal
diversion and dilution of corporate assets for personal enrichment at its worst at the
upper management levels of both current and former Imagex management.
The company stated that subject to opinion of counsel, it may turn over information to
the United States Department of Justice and the SEC or both as they have much
broader discovery and investigative powers than our firm. While not making any
direct allegations of criminal conduct (Genesis will leave that up to the appropriate
authorities), the Company still maintains its opinion with regard to the opportunity of
existing business for Imagex, the viability of re-instituting existing facilities and
expanding new facilities. Consequently, Genesis Insurance & Financial Services, Inc.
still believes Imagex is an excellent turnaround target and believes that these new
findings in no way are detrimental to Genesis or its family of companies and Genesis
remains committed to support Imagex shareholders to the fullest, and as a show of
good faith today agreed to transfer 100% of all GIFS restricted 144 shares due to
Imagex shareholders as opposed to the original 33% blocks based upon performance
of Imagex pursuant to the terms of the original conversion agreement. Consequently,
all shareholders except those very few which the Company has alleged to have
engaged in possibly civil or criminal activities surrounding the original sums and/or
assets for personal enrichment, will receive 100% of their GIFS share conversion
within the next ten (10) days.
In closing, the Company indicates that it will have more news of the status of the
Imagex reorganization and turnaround as matters develop and while the company does
not want to dampen shareholder confidence in Imagex, it does want to publicly
disclose its preliminary findings and position and restate its commitment to support
shareholder value for all members of the Genesis family of companies including
Imagex Services, Inc.
Should you have any additional questions or for more information, please contact
Investor Relations at 735 Broad Street, Suite 1001, Chattanooga, Tennessee 37402 or
423-266-7544 or via facsimile at 423-266-7750 or via E-mail at
investor.relations.genesisjuno.com. Genesis Insurance & Financial Services, Inc. is a
diversified holding company maintaining companies and investments in the financial
service industry, medical products industry, agricultural industry, real estate, natural
gas resources, gold mining and investments in other hard assets, securities and
projects.
SOURCE Genesis Insurance & Financial Services, Inc. /CONTACT: Mohamed
Khairy Mohamed Zayed, II, CEO of Genesis Insurance & Financial Services, Inc.,
423-266-7544/