NEW YORK, New York--March 2, 1995--Buddy L Inc., a subsidiary of
SLM International, Inc. href="(Nasdaq:SLMI)," target=_new>http://www.secapl.com/cgi-bin/edgarlink?SLMI">(Nasdaq:SLMI),
announced today that it has filed a
voluntary petition for reorganization under Chapter 11 of the Federal
Bankruptcy Code in the United States Bankruptcy Court for the District of
Delaware. Under Chapter 11, Buddy L would continue to operate its business in
the ordinary course under Court protection from creditors, while seeking to
work out a plan of reorganization.
SLMI also stated that it is continuing to negotiate the sale of certain
assets and liabilities of Buddy L to Empire of Carolina, Inc.
(AMEX:EMP)." target=_new>http://www.secapl.com/cgi-bin/edgarlink?EMP">(AMEX:EMP). The
companies previously announced on January 23, 1995 that SLMI and Empire had
signed a letter of intent in this regard. No assurance can be given that an
agreement will be entered into. If any such agreement is entered into, it
would be subject to approval by the Bankruptcy Court.
The Chapter 11 filing by Buddy L Inc. does not constitute a bankruptcy
filing by its parent company, SLM International, Inc., nor by SLMI's other
subsidiaries, which include: Buddy L Canada; Sport Maska Inc.; Maska U.S.
Inc.; No. 1 Apparel, Inc.; or No. 1 Apparel Canada Inc. Buddy L Inc. is
primarily engaged in the manufacturing and marketing of toys and related
products. SLMI's other operations are primarily engaged in the manufacturing
and marketing of sporting goods.
SLMI also announced that Buddy L yesterday completed a reduction in force of
approximately 150 employees at its Gloversville, N.Y. facility. This
represented approximately 25% of the work force at that facility.
"The bankruptcy filing by Buddy L Inc. is intended to facilitate the
reorganization and eventual sale of the toy business, by reducing the
liabilities of this subsidiary. This is consistent with our goal of
repositioning SLMI's business to focus on opportunities in the sporting goods
sector," said Howard J. Zunenshine, Chief Executive Officer of SLMI.
Customers and suppliers of Buddy L Inc. and others seeking additional
information on the bankruptcy filing are requested to call (212) 675-0070,
CONTACT: SLM International, Inc.
Chief Executive Officer
Chief Financial Officer
Edward Nebb, Melissa Garelick,
Jeff Majtyka (investors)
Lisa Bradlow (media)
TAMPA, Fla., March 2, 1995 -- Walter Industries, Inc. announced today
that its Plan of Reorganization has been confirmed by order of Chief
Bankruptcy Judge Alexander L. Paskay of the United States Bankruptcy Court for
the Middle District of Florida, Tampa Division, signed on March 2, 1995.
The Plan will become effective and the company, together with 32
subsidiaries, will emerge from Chapter 11 on or about March 15, 1995.
Among other matters addressed during a confirmation hearing yesterday, the
court approved the Veil Piercing Settlement Agreement which resolves all
asbestos-related claims against the company. Judge Paskay noted the Agreement
received approval of 74,000 asbestos claimants or their representatives
(versus 17 votes against) during a voting period established by a December 15,
1994 order of the court. In addition, the court considered that not one
individual or entity opted out of the Settlement Class or filed an objection
to the Agreement. Judge Paskay said the agreement achieves optimum assurance
of finality in successfully resolving the asbestos liability claims which were
a major factor in the company's December 1989 Chapter 11 filing.
James W. Walter, Chairman and Founder, said that post-reorganization working
capital and mortgage warehouse facilities are now in place and a planned
public offering of mortgage-backed securities is scheduled to occur prior to
March 15, in keeping with the Plan requirements. "With confirmation behind us
and the necessary financing vehicles secured, we look forward to the
successful completion of our reorganization in mid-March," Walter said.
Walter Industries, Inc., based in Tampa, Florida, is a diversified,
multi-subsidiary corporation with major interests in homebuilding and
financing, natural resources, building materials and industrial
manufacturing. Walter Industries and its subsidiaries employ more than
manufacturing facilities and sales offices throughout the United States. With
annual sales and revenues of more than $1.3 billion, the company currently
ranks at 306 on the Fortune 500 list of America's largest industrial
/CONTACT: David L. Townsend, Walter Industries, 813-871-4448/
TORONTO, ONTARIO--MARCH 2, 1995--TRENTON INDUSTRIES INC
(TSE:TII) Trenton Industries Inc.(the "Company") and its subsidiaries, Trenton
Machine Tool Inc., Brawley Industries Limited and Sailrail Enterprises Limited
(collectively, the "Trenton Group") have this day authorized the filing of a
Notice of Intention to Make a Proposal with the Official Receiver pursuant to
subsection 50.4 (1) of the Bankruptcy & Insolvency Act. The resultant stay of
proceedings against each member of the Trenton Group will give them time to
negotiate and prepare a Proposal for the restructuring of their debt and
equity. Coopers & Lybrand Limited has
been appointed trustee under each of the proposals.
For sometime now, the members of the Trenton Group have experienced cash
flow shortages due to a substantial increase in their volumes of new orders.
These cash flow pressures and the resultant inability to fully service
unsecured trade debt has impaired the Trenton Group's ability to complete
The Company has taken this decision because it believes that it is in the
best interests of its various stakeholders. Each member of the group is
confident that it will be able to develop a proposal that will result in a
reorganized Trenton Group on a basis that serves the interests of its valued
customers, employees, creditors and shareholders.
Coopers & Lybrand Limited will be working with the companies to assist them
in the development of their proposals. By virtue of progress made to date,
the Trenton Group believes it will be able to proceed with the restructuring
on a fast track basis. In the meantime, it is the intention of the Trenton
Group to continue their full business operations.
The shares of the Company trade on The Toronto Stock Exchange in Toronto
under the trading symbol "TII".
CONTACT: Mr. Bryan McJannet
Chairman & CEO
Mr. Brian Kinmond