WAYNE, N.J.--February 6, 1995--The Grand Union
today that it had filed a Plan of Reorganization and related Disclosure
Statement in the U.S. Bankruptcy Court for the District of Delaware.
A Company spokesperson noted that the filing was made within the time frame
outlined to the Company's principal creditor groups at a hearing held on
January 25, 1995, the day on which the Company commenced its bankruptcy
As previously stated, the Company commenced its bankruptcy case to implement
the agreement in principle reached among the Company and its principal
creditor groups regarding the restructuring of the Company. The Company
believes that the plan filed today reflects that agreement. Due to the
accelerated timetable for filing the Plan, the Company's key creditor groups
have not had an opportunity to fully review the Plan and Disclosure
The Company expects to work over the next several weeks to resolve any issues
raised by these groups and anticipates that the filing of an amended Plan and
Disclosure Statement may be necessary. The Company does not expect that any
revisions will delay the hearing to consider approval of the Disclosure
Statement scheduled for March 7, 1995.
Gary D. Hirsch, the current Chairman of the Board of Directors, stated: "The
directors of the Company will cooperate in effecting consummation of the
proposed Plan but after consultation with the putative owners of the common
stock of the reorganized company, Martin Fox and I have informed them that we
do not intend to be members of the Board of Directors following the
ST. LOUIS--February 6, 1995--Quadrex
Corp. (OTC" target=_new>http://www.secapl.com/cgi-bin/edgarlink?QUAD">OTC
announced that its board of directors has voted to sell all of its assets
including its subsidiary, BioEnergy International L.C., in order to raise
funds to meet creditor obligations.
The board concluded that there are no operating income opportunities for the
company in the foreseeable future and therefore adopted this course of
The company will seek the services of an investment banking firm, or other
professionals, to value and assist in the sale of BioEnergy.
The company does not currently know the value that the subsidiary might
realize in a sale. Other assets of the company include rights to
approximately 1,050,000 shares of the common stock of Perma-Fix Environmental
Services Inc. (href="NASD:PESI)," target=_new>http://www.secapl.com/cgi-bin/edgarlink?PESI">NASD:PESI),a
closed ethanol facility at Floyd, Va., office and
laboratory equipment located principally at its Gainesville, Fla. Research and
Development facility and a contract for a low cost liquid starch feedstock for
ethanol production in Minnesota.
The company feels that it is extremely unlikely that any proceeds will be
available for distribution to equity holders.
The board has also authorized management to seek bankruptcy protection, if
necessary or appropriate, to complete the orderly valuation and maximum sale
value of the BioEnergy subsidiary and other assets.
Quadrex is traded on the OTC Bulletin Board under the symbol QUAD.
SANTA ANA, Calif., February 3, 1995 -- The official representatives of
Orange County's bondholders called today
for a full investigation of the
County's reported use of bond repayment funds for other purposes and an
immediate return of all wrongfully diverted monies.
The Official Subcommittee of Bondholders of Orange County was responding to
accounts published today describing a report of State Auditor Kurt J.
According to press reports, Sjoberg's office has discovered that six days
after filing for bankruptcy protection in December, Orange County seized $73
million in funds set aside for County bondholders and placed the money into
the County's general fund. The Subcommittee's response was based on press
accounts because the County has never disclosed the diversion to
"It is shocking to consider that bondholder money may not have been safe in
the County's hands, even after the County sought bankruptcy protection," said
Charles D. Mires, assistant vice president of Allstate Insurance Co., a member
of the Bondholder Subcommittee. "The County says it needs to issue new
securities with the bond market's support," Mires added. "But these reports
suggest the County may not have represented its legal obligations to existing
The Bondholder Subcommittee includes Allstate and prominent mutual fund
firms, as well as leading municipal bond insurer AMBAC Indemnity Corp. The
mutual fund members include Franklin, Putnam and Benham. In addition, the
investment firms Morgan Grenfell, California Arbitrage Management Trust and
Advanced Investment Management, and bondholder ITT Hartford Insurance, have
joined the group and are awaiting formal appointment.
The auditors' report has come to light at the same time as participants in
the County's investment pools are demanding that the County make up their
"From the bondholders' perspective, it makes little sense for the County to
take on any obligation to make up those losses until it has provided for the
repayment of its own obligations," said Bennett J. Murphy of the Los Angles
law firm of Latham & Watkins, counsel to the Bondholder Subcommittee. "If the
County wants the support of the bond markets, bondholders expect the County to
put its own financial house in order before taking responsibility for any
investment losses of others."
/CONTACT: Charles D. Mires, assistant VP, of Allstate Insurance,
708-402-5726; or Bennett J. Murphy of
Latham & Watkins, counsel to the
Bondholder Subcommittee, 213-891-8507/