J. Gregg Pritchard Named President of AMRE in Liquidation
DALLAS, TX - Jan. 17, 1997 - AMRE, Inc. (NYSE: AMM) which
earlier announced that it intended to cease operations and file
bankruptcy, today announced that it has appointed J. Gregg
Pritchard as President of the company.
Mr. Pritchard has extensive experience as an operating executive
in complex bankruptcy and turnaround situations, and has served
as Trustee in numerous cases both under Chapter 7 and Chapter 11
of the United States Bankruptcy Code. A graduate of Abilene
Christian University, Mr. Pritchard is a member of the National
Association of Bankruptcy Trustees, the Turnaround Management
Association and the American Bankruptcy Institute.
According to Mr. Pritchard, "due to AMRE's inability to raise
additional working capital necessary to fund its previously
announced operating losses, AMRE has immediately ceased its
sales and marketing function. AMRE and its operating subsidiaries
American Remodeling, Inc., Facelifters Home Systems, Inc. and
Congressional Construction Corporation, intend to file for
protection under Chapter 11 of the Bankruptcy Code in order to
allow the companies to complete all work in process in a
responsible manner. Century 21 Home Improvements, Inc., which
administers the Century 21 Home Improvements Franchise
Network, also intends to file for protection under Chapter 11. The
Companies' assets will then be liquidated for the benefit of
creditors over the next six to twelve months."
Mr. Pritchard continued, "wherever possible, the Company will
attempt to structure sales of assets in operating segments under
Section 363 of the Bankruptcy Code in order to realize the highest
value attainable." The Company does not anticipate any residual
value for distributions to the stockholders of the Company.
AMRE is the parent company of Century 21 Home Improvements,
Inc., which licensed the service mark CENTURY 21 Home
Improvements(SM) for the sale of high-quality, installed home
improvements. AMRE also owns American Remodeling, Inc.,
Facelifters Home Systems, Inc. and Congressional Construction
Corporation all of which did business under the CENTURY 21
Home Improvements Network.
SOURCE AMRE, Inc. /CONTACT: J. Gregg Pritchard, president
of AMRE, Inc., 214-658-6319/
AMRE, Inc. Ceases Operations and Files for Bankruptcy
Protection
DALLAS, TX - Jan. 17, 19974 - AMRE, Inc. (NYSE: AMM)
today announced that it has been unable to obtain additional
working capital necessary, as previously disclosed, to fund
operating losses incurred in the fourth quarter ended Dec. 31, 1996
and anticipated operating losses during the first quarter of 1997.
As a result, AMRE, Inc. has immediately ceased operations and
plans to seek protection under Chapter 11 of the United States
Bankruptcy Code.
Effective immediately Ronald L. Bliwas, Dennis S. Bookshester,
Murray Gross and Robert M. Swartz have resigned as directors of
the Company.
The Company intends to complete all work in progress over the
next few weeks and then execute an administrative liquidation of
its assets. The Company is currently in discussions with a number
of parties regarding a possible sale of certain assets under Section
363 of Chapter 11 of the Bankruptcy code, in an effort to maximize
the value of the assets for the benefit of creditors. The Company
does not anticipate that these discussions and any resulting
transaction, should it occur, would yield any residual value for
distribution to the stockholders of the Company.
SOURCE AMRE, Inc. /CONTACT: John Vanecko of AMRE,
214-658-6338/
Clothestime announces resignations
ANAHEIM, Calif.--Jan. 17, 1997--The Clothestime Inc.
(OTC:CTMEQ) on Friday announced that John Ortega II, chairman
of the board of directors and chief executive officer, and Norman
Abramson, president and chief operating officer, have resigned
their positions as officers and directors of Clothestime and its
affiliates to pursue personal interests, effective as of Jan. 17,
1997.
The company also announced that David A. Sejpal, presently the
vice president and chief financial officer of Clothestime, has been
elected as chairman of the board, chief executive officer, president
and chief operating officer of the company. Douglas L. Pereira, the
company's corporate controller, and Robert Klausner, director of
stores, have been appointed members of the board of directors.
The company is engaged in ongoing discussions with its creditors'
committee regarding the available alternatives for the resolution of
Clothestime's Chapter 11 case.
CONTACT: The Clothestime Inc., Anaheim Douglas L. Pereira,
Corporate Controller 714/779-5881, Ext. 2410
Mitcham Industries files registration statement and increases
allowance for doubtful accounts
HUNTSVILLE, Texas--Jan. 17, 1997--Mitcham Industries, Inc.
(Nasdaq National Market: MIND) announced today that it has filed
a registration statement with the Securities and Exchange
Commission for an offering of 3.0 million shares of common stock,
of which 500,000 shares are being sold by selling shareholders.
The managing underwriters for the offering are Rodman &
Renshaw, Inc. and Simmons & Company International. The
Company and the selling shareholders have granted the
underwriters an option to purchase an additional 450,000 shares of
common stock solely for the purpose of covering over-allotments.
Proceeds from the Offering will be used to purchase additional 3-
D seismic data acquisition equipment for the Company's lease
pool, for repayment of debt and for other working capital
purposes.
Mitcham Industries also separately announced a $500,000 increase
in its allowance for doubtful accounts to provide for the filing by
Grant Geophysical, Inc. for bankruptcy protection. The Company
anticipates that such an increase in the allowance will result in a
decrease in its after-tax earnings per share of approximately $0.07
per share.
A registration statement relating to these securities has been filed
with the Securities and Exchange Commission but has not yet
become effective. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement
becomes effective. This communication shall not constitute an
offer to sell of the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state.
Certain matter discussed in this press release contain "forward-
looking" statements that involve risks and uncertainties. Although
Mitcham Industries believes that its expectations are based on
reasonable assumptions, it can give no assurance that anticipated
results will occur.
Mitcham Industries, Inc. is an independent leasing company
located in Huntsville, Texas.
CONTACT: Mitcham Industries, Inc. Roberto Rios, 409/291-2277
Chief Financial Officer or Investor relations counsel: The Equity
Group Inc. Eileen Harris, 212/836-9605 Linda Latman,
212/836-9609