AMERICAN GAMING & ENTERTAINMENT SUBSIDIARY GETS COURT APPROVAL FOR CHAPTER 11
ATLANTIC CITY, N.J.--May 30, 1995--American Gaming & Entertainment, Ltd.
(Nasdaq-OTC: AGEL) announced today that AMGAM Associates
("AMGAM"), the operator of the Gold Shore Casino in
Biloxi, Mississippi, on May 25, 1995 obtained the consent of the
United States Bankruptcy Court, Southern District of Mississippi, to
convert the previously announced involuntary petition filed against
AMGAM by certain of its creditors under Chapter 7 of the U.S.
Bankruptcy Code (the "Code") into a voluntary reorganization under
Chapter 11 of the Code. AMGAM is indirectly a wholly-owned subsidiary
/CONTACT: Alfred J. Luciani of American Gaming & Entertainment, Ltd.,
FOODBRANDS AMERICA COMPLETES SALE OF RETAIL DIVISION
OKLAHOMA CITY, OK--May 31, 1995--Foodbrands
Inc. (Nasdaq:FBAI), today announced that it has completed the
previously announced sale of the assets of its Retail Division to
Thorn Apple Valley, Inc. (Nasdaq:TAVI) for cash and the assumption of
certain liabilities. The purchase price approximates $70 million
payable in cash and the assumption of debt. The agreement also
includes a five year earnout of up to an additional $10 million upon
achievement of certain incentive targets.
As a result of this transaction, Foodbrands America's revenue will be
reduced by the division's sales, approximately $238 million in 1994.
Interest expense will be reduced by approximately 29% as approximately
$64 million of long-term debt will be removed from the balance sheet.
The company expects to write off approximately $65 million of post
bankruptcy intangibles and will record a one-time charge of
approximately $37.0 million, or $3.00 per share, after tax, in the
second quarter ending July 1, 1995.
R. Randolph Devening, Chairman, President and Chief Executive Officer,
commented, "We are pleased to announce the completion of this
transaction with Thorn Apple Valley. As a result of this divestiture,
we expect a substantial improvement in our earnings outlook given the
solid profitability of our remaining operations. As this transaction
enables the company to pay down a significant portion of its
outstanding debt, we plan to continue to implement our strategy of
acquiring food manufacturers that are successfully exploiting product
niches in the food-away-from-home market."
Foodbrands America produces, markets and distributes branded and
processed food products under proprietary brand names that include
Wilson's Continental Deli(R), American Favorite(TM), Doskocil
Foods(TM), Jefferson Meats(TM), Fred's(R), Rotanelli's(R), Posada(R),
and Butcher Boy(R). The Company's products include pepperoni and beef
and pork toppings marketed to the pizza industry, appetizers, Mexican
and Italian foods, as well as boneless hams, sausage, bacon, and other
branded and processed products for the foodservice and retail
CONTACT: FOODBRANDS AMERICA, INC.
Vice President Planning
Naomi Rosenfeld/Eileen Howard
Media contact: Stan Froelich