Harrah's Jazz Announces Next Steps
NEW ORLEANS, LA - June 26, 1997 -
("HJC") announced that, as it had earlier indicated, it
went to federal bankruptcy court today to ask for assumption of
the existing operating contract with the state of Louisiana and
the rights of HJC under that contract as part of a modified plan
of reorganization.
Under the modified plan of reorganization, HJC will seek,
among other things, a determination as to whether it is required
to pay the $100 million annual payment to the state as a
consequence of the state's failure to require riverboat casinos
to cruise as mandated by state law and in violation of HJC's
exclusivity rights to develop and operate a land-based casino in
New Orleans.
Pending action by the bankruptcy court, development plans and
timetables for resumption of construction and scheduled opening
dates for the casino are uncertain.
SOURCE Harrah's Entertainment, Inc. /CONTACT: William Patrick,
Harrah's Entertainment, Inc., 504- 533-6000/
StreamLogic Corp. makes announcement
MENLO PARK, Calif.--June 26, 1997--StreamLogic Corp. announced
today that it has filed a voluntary petition for relief under the
provisions of Chapter 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the Northern District of
California, San Francisco Division.
The company's filing will allow the company to restructure its
financial obligations through a plan of reorganization.
On June 17, 1997, the company announced that its preliminary
operating results for the fourth quarter and for the fiscal year
ended March 28, 1997 (unaudited) were losses of $20.8 million and
$16.1 million, respectively. The loss for the financial year
included an extraordinary gain of $24.1 million during the third
quarter relating to the exchange of the company's 6% subordinated
debentures for a combination of cash, increasing rate notes,
common stock of the company and warrants to purchase common stock
of the company (the "Bond Exchange"). In addition, the
company has been named as a defendant in a number of litigation
matters, and the company has been required to expend significant
financial resources in defending such litigations. Effective June
25, 1997, the company's securities were delisted from The Nasdaq
Stock Market based on, among other factors, the company's stock
price, market capitalization and level of net tangible assets.
In late 1996 and early 1997, the company's Board of Directors
was restructured through a combination of board resignations and
the appointment of new directors in connection with the Bond
Exchange. A new management team was hired with experience in the
turnaround of distressed companies. Since that time, the board
and the new management team have pursued a course intended to
bring financial stability to the company, including a significant
reduction in the company's work force, relocation of the
company's corporate headquarters and consolidation of the
company's manufacturing, production facilities, engineering and
research and development facilities into a single facility in
Northern California.
The bankruptcy proceeding is limited to StreamLogic Corp.
Subject to restrictions that may be imposed by the bankruptcy
court, domestic and foreign business operations should continue
with a minimum of disruptions or impediments. The company intends
to work diligently on formulation of a reorganization plan which
strives to preserve the company as a viable, going concern, while
at the same time seeking to protect the interests of the
company's creditors, debt holders and shareholders.
Certain statements contained in this release may be deemed
"forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. There are many
factors that could cause the events in such forward looking
statements not to occur, or to occur in a manner materially
different from that contemplated by such forward looking
statements, including the inability of the company to implement a
successful plan of reorganization. Accordingly, actual results
could differ materially from those contemplated in such forward
looking statements.
CONTACT: StreamLogic Corp. Mark M. Glickman, 415/833-4833