TCR_Public/970630.MBX



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InterNet Bankruptcy Library - News for June 30, 1997







Bankruptcy News For June 30, 1997




        
  1. Avatex Announces Fourth Quarter and
            Year End Results
    ]

  2.     
  3. West Springfield Woman Charged With
            Bankruptcy Fraud, U. S. Attorney Reports

  4.     
  5. Jayhawk Acceptance

  6.     
  7. StreamLogic announces product line
            transition plan






Avatex Announces Fourth Quarter and Year
End Results



DALLAS, TX - JUNE 30, 1997 - Avatex Corporation (NYSE: AAV)
today announced financial results for the fourth quarter and
fiscal year ended March 31, 1997.



Avatex reported revenues for the fourth quarter of $1.4
million compared to revenues of $4.7 million for the same period
last year. The decrease is due primarily to a reduction in the
number of real estate partnerships the Company operated compared
to the previous year. The Company reported an operating loss of
$0.3 million for the quarter, compared with an operating loss of
$1.7 million a year ago. The Company reported a net loss from
continuing operations of $9.2 million, compared with a net loss
from continuing operations of $4.2 million for the same period
last year. Included in the loss from continuing operations for
the fourth quarter of fiscal 1997 is a charge for the write-down
of the Company's investment in Phar-Mor, Inc. of approximately
$13.6 million. After discontinued operations and preferred stock
dividends, the Company recorded a net loss to common shareholders
of $21.7 million, or $1.56 per share, compared with a net loss to
common shareholders of $42.0 million, or $2.47 per share, for the
same period last year.



For the fiscal year ended March 31, 1997, Avatex reported
revenues of $12.5 million compared to $10.4 million for the same
period last year. Operating losses were $2.4 million compared
with operating losses of $7.1 million the previous year. The
Company reported a net loss from continuing operations of $12.2
million, inclusive of the write-down of the Company's investment
in Phar-Mor of $13.6 million, compared to net income from
continuing operations of $5.1 million for the same period last
year. After discontinued operations and preferred stock
dividends, the Company recorded a net loss to common shareholders
of $298.4 million, or $19.90 per share, compared with a net loss
to common shareholders of $84.8 million, or $4.95 per share, for
the same period last year. The results of discontinued operations
relate primarily to FoxMeyer
Corporation
, and its subsidiaries, which declared bankruptcy
in August 1996.



All financial results have been reclassified to reflect the
treatment of FoxMeyer Corporation as discontinued operations.



                          AVATEX CORPORATION AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS
                               (in thousands of dollars)
  


                                                    March 31,
  March 31,
                                                      1997
  1996
        ASSETS
        Current Assets
       Cash and short-term investments         $     7,173    $
  26,987
       Restricted cash and investments              33,115
  -
       Receivables                                   3,059
  291,750
       Inventories
  --        632,269
         Net assets of discontinued operations
        held for sale
  --         16,527
       Other current assets                         15,293
  43,632
      Total current assets                          58,640
  1,011,165
      Investment in National Steel Corporation      44,961
  44,099
      Investment in affiliates                      28,711
  49,602
      Net property, plant and equipment             18,390
  142,855
        Other assets
       Goodwill and intangibles                        910
  220,489
       Deferred tax asset
  --         79,676
       Miscellaneous assets                          6,825
  29,184
      Total other assets                             7,735
  329,349
      Total assets                              $  158,437    $
  1,577,070
  


        LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  


        Current liabilities
       Accounts payable                          $   1,501     $
  610,579
       Other accrued liabilities                     4,604
  39,088
       Salaries, wages and employee benefits         3,148
  9,919
       Income taxes payable
  -          2,468
       Deferred income tax payable
  -         43,917
       Long-term debt due within one year            2,969
  28,793
      Total current liabilities                     12,222
  734,764
      Long-term debt                                27,482
  403,831
      Other long-term liabilities                   35,985
  38,646
        Minority interest in consolidated
       subsidiaries                                  6,853
  10,074
      Redeemable preferred stock                   189,402
  187,292
        Stockholders' equity (deficit)
       Common stock                                 69,030
  120,940
       Capital in excess of par value              119,092
  209,613
       Minimum pension liability                   (73,531)
  (64,634)
       Net unrealized holding loss on securities
  -            (17)
       Retained earnings (deficit)                (228,098)
  70,431
       Treasury stock
  -       (133,870)
      Total stockholders' equity (deficit)        (113,507)
  202,463
        Total liabilities and stockholders'
       equity (deficit)                         $  158,437
  $1,577,070
  


                          AVATEX CORPORATION AND SUBSIDIARIES
                          CONDENSED STATEMENTS OF OPERATIONS
                         (Thousands, except per share amounts)
  


                                      For the year ended   For the
  quarter ended
  


                                           March 31,
  March 31,
                                         1997      1996        1997
  1996
  


      Revenues                        $ 12,463  (84,769)  $ (21,658)
  $ (42,013)
  


        Operating costs:
         Operating costs, including
         general and administrative
       costs                             13,386   16,534       1,490
  5,919
  


       Depreciation and amortization      1,468    1,034         272
  485
  


      Operating loss                     (2,391)  (7,129)       (339)
  (1,683)
  


      Other income, net                  19,228   21,779     (11,560)
  2,856
  


        Financing costs
       Interest income                    1,678    2,822         451
  574
  


       Interest expense                   6,416    6,391       1,254
  1,795
  


      Financing costs, net                4,738    3,569         803
  1,221
  


        Income (loss) from continuing
         operations before National Steel
         Corporation, equity in income
         (loss) of affiliates, income tax
        provision and minority interest  12,099   11,081     (12,702)
  (48)
  


        National Steel Corporation,
       net preferred dividend income      9,620    3,329       4,394
  579
        Equity in income (loss)
       of affiliates                     (5,199)  (4,168)     (3,293)
  (2,487)
  


        Income (loss) from continuing
         operations before income tax
       provision and minority interest   16,520   10,242     (11,601)
  (1,956)
  


      Income tax provision               29,870    2,977          15
  1,974
  


     Income (loss) from continuing
        operations before
      minority interest                 (13,350)   7,265     (11,616)
  (3,930)
  


        Minority interest in results
         of operations of consolidated
       subsidiaries                      (1,106)   2,117      (2,448)
  228
        Net income (loss) from continuing
       operations                       (12,244)   5,148      (9,168)
  (4,158)
  


        Discontinued operations:
         Loss from discontinued operations,
        net of tax                      (21,057) (61,728)       (285)
  (25,765)
  


         Loss on disposal of discontinued
        operations, net of tax         (246,055)  (7,081)     (6,172)
  (7,081)
  


      Net loss                         (279,356) (63,661)    (15,625)
  (37,004)
  


      Preferred stock dividends          19,081   21,108       6,033
  5,009
  


        Loss applicable to common
       stockholders                   $(298,437)$(84,769)   $(21,658)
  $(42,013)
  


        Per share of common stock:
       Loss from continuing operations   $(2.09)  $(0.93)     $(1.09)
  $(0.54)
  


       Discontinued operations           (17.81)   (4.02)      (0.47)
  (1.93)
  


      Loss per share                    $(19.90)  $(4.95)     $(1.56)
  $(2.47)
  


        Average number of
       common shares outstanding         14,997   17,115      13,886
  16,982
  


SOURCE Avatex Corporation/CONTACT: Edward Massman, Chief
Financial Officer of Avatex, 214-365-7450/






West Springfield Woman Charged With Bankruptcy
Fraud, U. S. Attorney Reports



BOSTON, MA - June 30, 1997 - Charges were filed today against
a West Springfield, Massachusetts woman for bankruptcy fraud for
concealing approximately $100,000 from bankruptcy creditors and
the bankruptcy trustee.



United States Attorney Donald K. Stern stated that a one-count
criminal information was filed today charging VIRGINIA LABRECQUE,
61, of 22 Hickory Hill, West Springfield, Massachusetts, with
concealing from her bankruptcy creditors and bankruptcy trustee
approximately $100,000.



The information alleges that in late 1989, LABRECQUE and her
husband sold a condo in Florida and used the approximately
$100,000 profit to purchase a CD, which they later cashed and
transferred to their attorney in Massachusetts; that she told the
attorney that the funds belonged to her brother-in-law who was
making them available for LABRECQUE and her husband to help in
their time of financial need.



The information charges that the LABRECQUES filed a bankruptcy
in March, 1990, and that LABRECQUE - who provided all the
financial information to the bankruptcy attorney - failed to
disclose her ownership of the $100,000, failed to disclose the
sale of the Florida condo, and failed to disclose the closing of
the Florida CD account.



LABRECQUE faces five years in prison, a $250,000 fine,
restitution, a $50 special assessment and three years of
supervised release.



The case was investigated by the Federal Bureau of
Investigation, was referred by the U.S. Trustee's Office in
Worcester and Boston, and is being prosecuted by Assistant U.S.
Attorney Mark J. Balthazard of Stern's Economic Crimes Unit.



SOURCE U.S. Attorney's Office /CONTACT: Amy Rindskopf or Joy
Fallon of U.S. Attorney's Office, 617-223-9445/






Jayhawk Acceptance



DALLAS, TX - June 30, 1997 -- Jayhawk
Acceptance Corporation
(Nasdaq: JACCQ) reported today that
collections from its automobile installment sale contracts,
particularly in June, have been below the levels contemplated by
its agreement with its primary secured lender. Unless actual
collections exceed those currently projected, under this
agreement the Company would be required to make prepayments to
the lender that would jeopardize its ability to make the other
payments contemplated by its presently filed plan of
reorganization within the time periods provided therein.
Consequently, the Company intends to discuss with its secured
lender and the unsecured creditors committee revisions in the
timing of the payments contemplated by the plan of
reorganization. Any revisions in the timing of such payments
would require amendments to the plan of reorganization as
presently filed. The Company anticipates that any amended plan of
reorganization would continue to provide for full payment of its
indebtedness and contractual obligations. There can be no
assurance that the Company will reach an agreement with the
secured lender or the unsecured creditors committee regarding
revisions in the timing of the payments contemplated by its plan
of reorganization or that any amended plan of reorganization will
be confirmed. Except for the historical information contained
herein, the matters discussed in this press release, including
projected collections, are forward looking statements that are
dependent upon a number of risks and uncertainties that could
cause actual results to differ materially from those in the
forward looking statements. These risks and uncertainties include
the recoverability of advances paid to dealers and physicians for
contracts and loans, the delinquency and default rates with
respect to the contracts and loans included in the Company's
portfolio, the impact of competitive services and products,
changes in market conditions, the limited operating history of
Jayhawk's medical finance business, the impact of changes in
regulation or litigation, the management of growth and the other
risks described in the Company's SEC filings. The Company does
not intend to provide updated information about the matters
referred to in these forward looking statements, other than in
the context of management's discussion and analysis in the
Company's quarterly and annual reports on Form 10-Q and 10-K.
Jayhawk Acceptance Corporation is a specialized financial
services company headquartered in Dallas, Texas.



SOURCE Jayhawk Acceptance Corporation /CONTACT: Virginia L.
Cleveland of Jayhawk Acceptance Corporation, 214-754-1016/






StreamLogic announces product line
transition plan



NEWARK, Calif.--June 30, 1997--Following the announcement on
June 26, 1997 that the company had filed for protection under
Chapter 11 of the U.S. Bankruptcy Code, StreamLogic Corporation
today announced plans to revamp its product lines.



The plans include a "letter of intent" to sell,
subject to Bankruptcy Court approval, the assets of the RAIDion,
MicroDisk and Gandiva product lines to Peripheral Technology
Group (PTG) and focus the business on the Hammer technology. The
RAIDion lines will continue to be manufactured by JMR Electronics
and supported by a third party service center, Valtron Corp.



This transition will enable the RAIDion customer base to
continue this line of products for future sales, delivery and
support. The company has also sold its VIDEON technology to
Sumitomo Corporation and has ceased development of, and intends
to sell its Video Disk Recorder technology.



"The focus on the Hammer technology will enable us to
concentrate our attention on the product line that has previously
been a successful revenue stream," said Steve Dalton,
president and COO.



"Hammer is still the leader in high performance graphics,
video and 3-D vertical applications in RAID and storage solutions
for the Macintosh, Windows NT and SGI environments," he
added.



"By focusing our company's full attention on this line of
products we will be building a strong presence in these markets
providing new and innovative technologies, strong market
awareness to our channel and customer base, and 48 to 72 hour
product delivery with fast 24/7 customer service. We must get
back to taking care of the customers that have helped us build a
strong Hammer product line over the past several years."



"We've also secured the key core technologies for the
future which we'll begin to aggressively bring to market once
we've comfortably preserved and cushioned our cash position
against current run-rates."



The transition plan for these product lines, is currently
under way with completion expected within 30 to 45 days. Part of
the transition plan includes the hiring of a new vice president
of sales and marketing, Mark Koziol. Koziol brings many years of
experience in the RAID, storage and client/server markets, most
recently with San Disk Corp., previously to that he held
executive positions at Storage Dimensions Inc. and Memorex Telex.
The company intends to announce new products, and re-launch
existing products as well, over the next 30 days.



StreamLogic will also seek to change the name of the company
to Hammer Storage Solutions Inc. (HSSI).



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, sell the various product lines
as contemplated, or successfully implement its transition plan.
Accordingly, actual results could differ materially from those
contemplated in such forward-looking statements.



CONTACT: StreamLogic Steve Dalton, 510/608-4049