Official Creditor's Committee of the County of Orange makes announcement
LOS ANGELES, Calif. -- January 27, 1995 -- The Official Creditor's
Committee of the County of Orange has released a letter written by its counsel
to each member of the Orange County Board of Supervisors, dated January 26,
1995, stating that "The letter expresses the views of all the Committee
members and all of its professionals."
Furthermore, the committee reacted to today's announcement by the County
that further accounting irregularities had been discovered with respect to the
investment pool by stating that:
"The creditors of the County, including bondholders and vendors, are
extremely distressed to learn of this recent revelation and are of the strong
opinion that this development further underscores the need for a thorough
administrative housecleaning and the immediate appointment of a strong county
executive with a background in business and finance to take control."
Robert Moore, as counsel to the committee, underscored that:
"In order for the county to successfully emerge from this crisis, a new
executive officer must have the full confidence of the creditor community and
the committee and the power to provide strong leadership."
CONTACT: Bob Moore, 310/788-3700
AILEEN, INC. ANNOUNCES PLANT CLOSINGS, LAYOFFS AND REORGANIZATION
NEW YORK, N.Y. -- January 27, 1995 -- Aileen, Inc. (NYSE: AEE),
debtor-in-possession under Chapter 11 of the United States Bankruptcy Code, a
manufacturer and retailer of women's apparel, today announced that the Company
has notified the employees at its manufacturing facilities in Edinburg and
Woodstock, Virginia, that those facilities will be closing between January 27,
1995 and February 3, 1995. The plant shutdowns will terminate the knitting,
dyeing, printing, finishing and purchasing operations at the Edinburg textile
plant and the fabric cutting and sewing operations at the Woodstock location.
Related reductions in staffing will affect the Company's accounting and data
processing department, which will continue to operate at the Edinburg plant,
as well as the administrative offices for the retail stores and the warehouse
and distribution center, which will continue to operate at the Woodstock
facility. The Company has no present intention to terminate its retail
operations, which have been the primary focus of the Company's resources in
recent years. A total of 281 employees are expected to be permanently laid
off as a result of the plant closings.
The decision to shut down the Virginia manufacturing operations was made
only after the recent unanticipated dramatic downturn in sales and the failure
of efforts to either obtain the necessary financing to sustain these
operations or find a buyer who would continue these operations as a going
concern. No determination has yet been made with regard to the disposition of
the Edinburg and Woodstock plants and equipment, though numerous indications
of interest have been received from prospective purchasers of all or parts of
The closing of the Company's only remaining domestic manufacturing
facilities means that, after 47 years as a manufacturer of quality women's
apparel, the Company will no longer have a vertically-integrated operation to
produce merchandise for its chain of 117 retail stores. However, the closings
will not affect delivery of the Company's Spring merchandise, which is being
completed at the Company's sewing plants in the Dominican Republic and is
expected to reach the stores on a timely basis.
During the past several weeks, management, with the support of the official
committee representing the Company's unsecured creditors, has met with various
investment banking firms, prospective lenders and other interested parties
concerning the strategic alternatives available to the Company. As a result
of those discussions, the Company is currently negotiating an arrangement
which, if consummated, would provide for a management company to assist with
the ongoing operation of the business, the obtaining of additional financing
and the disposition of manufacturing assets. Such arrangement contemplates
that the Company, the management company and the creditors' committee will
begin negotiating the Company's Chapter 11 plan of reorganization, with the
goal of developing a reorganized retail company in which the management
company will have a substantial equity participation.
/CONTACT: Steve Delman of Aileen, Inc., 212-398-9770/
CENTRAL CAPITAL CORPORATION -- REPORTED THAT THE CORPORATION APPROVED A
TORONTO, ONTARIO -- January 27, 1995 -- CENTRAL CAPITAL (TSE:CEH)
Central Capital Corporation reported that the Directors of the Corporation
approved a principal repayment of $2,107,710 and a principal prepayment of
$4,500,000 of its outstanding First Secured Notes. Payments of principal and
related accrued interest will be distributed March 1, 1995 pursuant to the
terms of the Corporation's Trust Indenture.
The Corporation also plans to proceed with the issuance of a third tranche
of Central New Common shares ("Shares") and First Secured Notes ("Notes") no
later than March 1, 1995. Preliminary calculations prepared by the Court
Appointed Administrator of the Corporation's Plan of Arrangement indicate that
the third tranche will consist of approximately 2,100,000 Shares and
$3,000,000 of Notes. Payment of the proportionate share of all principal and
interest payments held by the Corporation in Cash Equivalents attributable to
the Notes to be issued will be distributed when the Notes are issued.
The Corporation has been served with a Notice of Motion for Leave to Appeal
the Judgement of the Honourable Madame Justice Feldman, in which the claims of
certain Preferred Shareholders, relating to the Corporation's Plan of
Arrangement under the Companies' Creditors Arrangement Act were dismissed. No
date has yet been set for the hearing of the Motion.
CONTACT: Richard Hazell
CREDITORS FILE BANKRUPTCY PETITION AGAINST SKOLNIKS
WORCESTER, Mass., January 27, 1995 -- Three companies have filed a
$354,000 involuntary bankruptcy petition in the U.S. Bankruptcy court for the
Western District of Oklahoma against Skolniks, Inc., claiming the company is
delinquent on payments for goods and services.
Bay State Milling Co., of Quincy, Mass., American Truck Lines, Inc., of
Philadelphia, and Artkraft Container Corp., of Tullytown, Pa., filed the
petition, asking the Court to place Skolniks into Bankruptcy under Chapter 11.
Skolniks has 20 days to contest the petition, according to Joseph H.
Baldiga, an attorney with the Worcester, Mass., law firm of Mirick, O'Connell,
DeMaille & Lougee, which represents the three companies.
The petitioning creditors also asked the Bankruptcy Court to require
Skolniks to seek court approval prior to engaging in activities outside of
ordinary business actions until the case is settled. This request was granted
by the Bankruptcy Court on January 24, 1995, according to Baldiga.
Skolniks's stock has been traded on the Nasdaq stock exchange, but was
delisted. Prior to the delisting, it was announced that Skolniks was
undergoing negotiations with Nasdaq regarding a discrepancy in the number of
shares of the company.
Skolniks manufactures bagels and other bread products, which are distributed
through wholesale and retail grocery outlets and Skolniks franchise
restaurants throughout much of the country.
Mirick, O'Connell, DeMaillie & Lougee is a 40-member law firm that provides
core services in corporate and business law, estate planning and
administration, labor and employment law, land use, litigation and municipal
law. It also offers cross-departmental and intra-departmental practice
groups, such as bankruptcy and workout, high technology, international
business, health law, biotechnology, personal injury, banking and
/CONTACT: Joseph H. Baldiga, Attorney of Mirick, O'Connell, DeMallie &
Lougee, 508-799-0541, or Tim Trainor of Donovan Group, 508-752-6600/