AMENDED REORGANIZATION PLANS FILED BY COLUMBIA GAS COMPANIES
WILMINGTON, Del.--June 14, 1995--The
Columbia Gas System Inc. (NYSE: CG) and its principal pipeline subsidiary, Columbia
Gas Transmission Corp., filed amended reorganization plans and
disclosure statements with the U.S. Bankruptcy Court for the
District of Delaware here today.
The amendments incorporate the settlement reached earlier
between Columbia Transmission and its producer creditors and spell
out the terms of the new securities to be issued to Parent Company
creditors and the methodology to be used in pricing these
The Parent Company plan is a full pay plan that provides for a
total distribution of approximately $3.6 billion to its creditors.
Columbia Transmission's plan will pay approximately $1.7 billion to
outside creditors and $2.2 billion to the Parent Company to resolve
its secured and unsecured debt claims. Columbia Transmission's
unsecured creditors will receive various percentages of their
allowed claims depending upon their classification under its plan.
The two companies are mailing notices to approximately 130,000
shareholders, bondholders and other creditors announcing the
Bankruptcy Court hearing on the adequacy of the disclosure documents
filed today by the two companies, which has been scheduled for July
Another Bankruptcy Court hearing is scheduled for Thursday, June
15, on the motion filed by Columbia Transmission seeking approval of
the settlement agreement it reached with major producer creditors.
These producers represent more than 80 percent of the producer
claims filed against Columbia Transmission.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas holding companies. Subsidiary companies are engaged in
the exploration, production, purchase, storage, transmission and
distribution of natural gas and other energy operations such as
cogeneration. The Parent Company and Columbia Transmission have
been operating as debtors-in-possession under the Bankruptcy Code
since July 31, 1991.
/CONTACT: Media, W.R. McLaughlin, 302-429-5443, or H.W. Chaddock,
302-429-5261; or Analysts, T.L. Hughes, 302-429-5363, or K.P.
Murphy, 302-429-5471, all of Columbia Gas/
SLM International reaches Standstill Agreement with lenders; Retains Bear,
Stearns & Co. to seek capital; Announces agreement to sell Buddy L Fitness assets
NEW YORK, N.Y.--June 14, 1995--SLM International Inc. (Electronic
Bulletin Board: "SLMI") announced today that it has
reached a Standstill Agreement with the holders of $75 million of
the Company's Senior Notes.
The Standstill Agreement permits SLM and its operating
subsidiaries to continue to operate their business in accordance
with their business plan which has been presented to the
Noteholders. The Standstill Agreement will remain in effect,
subject to certain conditions, through December 31, 1995. In
connection with the Standstill Agreement, the Noteholders have
received certain concessions from SLMI and have withdrawn
involuntary bankruptcy filings pending against SLMI and its
subsidiaries in Canada.
SLM also announced that it had retained the investment banking
firm of Bear, Stearns & Co. Inc. to assist the company in exploring
a wide variety of possible financial transactions, including
refinancing its existing indebtedness and obtaining additional
Finally, SLM announced that its subsidiary, HREF="chap11.buddy.html">Buddy L Inc., has
reached an agreement in principle to sell certain assets comprising
its fitness business to a group composed of members of its fitness
division management with financing provided by Capstone Group Inc.
The sale price of approximately $2.9 million will be paid in cash to
Buddy L, which is operating under Chapter 11 of the U.S. Bankruptcy
"This series of positive developments represents further
progress toward our goal of restructuring SLMI's operations to focus
on our core sporting goods business. We believe that the Standstill
Agreement, in particular, demonstrates support for our business
plan. The agreement to sell Buddy L's fitness assets, coupled with
our previously announced agreement to sell Buddy L's toy assets,
means that we will exit these non-core businesses very shortly,"
said Howard Zunenshine, chief executive officer of SLMI.
SLM International Inc. designs, develops, manufactures and
markets a broad range of sporting goods products on a worldwide
CONTACT: SLM International Inc.
Howard Zunenshine, Chief Executive Officer
or John A. Sarto, Chief Financial Officer
David Walke/Melissa Garelick
Press: Lisa Bradlow, 212/850-5600
HALLWOOD GROUP REPORTS FISCAL 1995 THIRD QUARTER RESULTS
DALLAS, Texas--June 14, 1995--The
Hallwood Group Inc. (NYSE:HWG) today reported fiscal 1995 third quarter results.
quarter ended April 30, 1995.
Revenue in the fiscal 1995 third quarter was $31.1 million,
compared to $29.6 million in the prior-year quarter. The net loss
was $73,000, or $0.01 per share, compared to net income of $541,000,
or $0.10 per share, a year ago. The prior year quarter included a
$1.5 million expense for litigation settlement and an extraordinary
gain from extinguishment of debt in the amount of $648,000.
Following is a divisional comparison of third quarter and nine-
month results for fiscal 1995 and 1994:
Asset Management, including real estate and energy segment,
earned $507,000 on revenue of $2.7 million in the quarter, compared
to a loss of $859,000 on revenue of $2.6 million in the year-ago
quarter. The real estate segment reported income of $649,000,
compared to a loss of $1.2 million, in fiscal 1994, primarily due to
the $1.5 million expense for litigation settlement in 1994. The
energy segment reported a loss of $142,000 for the fiscal 1995
quarter, which includes a $464,000 impairment cost from the write-
off of certain oil and gas assets, compared to a gain of $332,000
for 1994. For the nine months in 1995, the division earned $1.2
million on revenue of $7.6 million, compared to earnings of $76,000
on revenue of $7.8 million in 1994.
Operating Subsidiaries, comprised of textile products and hotel
operations, reported earnings of $560,000 in the fiscal 1995
quarter, compared to $1.8 million in the corresponding fiscal 1994
quarter. Third quarter 1995 revenue for the textile products segment
increased to $22.0 million from $19.4 million in the quarter a year
ago. Fiscal 1995 third quarter earnings of $190,000 for the textile
products segment declined from the prior-year quarter of $536,000.
The hotel segment reported earnings of $370,000, down from $1.2
million in the prior-year quarter, primarily due to the sale of the
Lido Beach Holiday Inn hotel in January 1995, on revenues of $5.9
million and $6.9 million, respectively. Hotel results include the
acquisition of its former affiliate, Integra - A Hotel and
Restaurant Company, upon its emergence from bankruptcy in March
1994. For the nine months in 1995, the division reported earnings
of $2.5 million on revenue of $76.4 million, including a gain of
$2.2 million from the sale of the Lido Beach Holiday Inn Hotel,
compared to 1994 earnings of $1.2 million on revenue of $67.1
Associated Companies, consisting of the company's pro-rata
results of the operations of ShowBiz Pizza Time Inc. reported
earnings of $262,000 for the fiscal 1995 third quarter, compared to
earnings of $434,000 in the quarter a year ago. For the nine months
in 1995, the division lost $557,000, as compared to income of
$800,000 in 1994
Other, consisting primarily of debenture interest and
administrative expenses, reported quarterly losses of $1.3 million
and $1.4 million and nine month losses of $6.0 million and $2.7
million in fiscals 1995 and 1994, respectively. Fiscal 1995 nine-
month results include a $1.7 million charge for litigation matters
and the fiscal 1994 results include a $1.7 million one-time recovery
from an investment previously written of.
THE HALLWOOD GROUP INC.
(In thousands, except per share amounts)
Three Months Nine Months
Ended April 30, Ended April 30,
1995 1994 1995 1994
Revenue $31,117 $29,646 $84,520 $78,050
Loss before income taxes
and extraordinary gain (17) (73) (2,914) (671)
Income taxes (56) (34) (840) (1,224)
Loss before extraordinary
gain (73) (107) (3,754) (1,895)
Extraordinary gain --- 648 --- 648
Net income (loss) (73) 541 (3,754) (1,247)
Net income (loss)
per share ($0.01) $0.10 ($0.68) ($0.23)
outstanding 5,487 5,487 5,487 5,487
/CONTACT: Mary Doyle, VP of Investor Relations of the Hallwood
Group, 800-225-0135 or 214-528-5588/
DeBARTOLO, INC. FINALIZES SALE OF RALPHS
YOUNGSTOWN, Ohio--June 14 1995--DeBartolo, Inc. and its
wholly owned subsidiary, The Edward J.
DeBartolo Corporation (EJDC),
today announced the completion of the sale of its 60.34% interest in
California-based Ralphs Grocery Company. Proceeds from the sale
have been applied against corporate debt. According to Edward J.
DeBartolo, Jr., president and chief executive officer of The Edward
J. DeBartolo Corporation, this transaction strengthens the
corporation's long-term financial position.
Also benefiting from the transaction, indirectly, will be
DeBartolo Realty Corporation (NYSE: EJD), a real estate investment
trust in which the DeBartolo family holds a 39.3% interest. As part
of the REIT's formation and initial public offering in April 1994,
EJDC pledged its interest in the operating partnership as security
for its corporate debt. Amortization payments of that debt are
scheduled to begin in November 1995 and extend through June 1998.
Proceeds from the sale of Ralphs will substantially satisfy these
payments to June 1997.
DeBartolo originally acquired its 60.34% interest in Ralphs
Grocery Company during 1992 as part of the reorganization plans of
Federated Stores, Inc., Allied Department Stores and Federated
Department Stores, Inc. by U.S. Bankruptcy Court. The 174-store
chain operates primarily in Southern California.
/CONTACT: Marie Izzo Cartwright of DeBartolo, 216-758-7292,
ext. 2872, or fax, 216-726-2539/
Dickstein Partners places equity for Hills Stores offer.
NEW YORK, New York--June 14, 1995--Dickstein Partners Inc.
today announced that it has entered into agreements with Indosuez
Capital, Canyon Partners and Golub Associates regarding the
investment of $20 million of equity capital in its proposed
acquisition of Hills Stores Co. (NYSE:HDS).
Dickstein Partners also announced that it is now willing to
provide the balance of the $75 million of equity capital required to
finance the proposed acquisition under the terms of the "highly
confident" letters which have been provided to Dickstein Partners
Inc. from NatWest Markets and NatWest Bank N.A.
Mark Dickstein, president of Dickstein Partners Inc., commented,
"At this time we have decided to accept only $20 million from
outside investors. This will provide us with maximum financial
flexibility for what we hope will be the auction of Hills Stores, at
which point Hills will presumably allow us to negotiate with other
Hills shareholders regarding their investment of equity capital. In
this auction, if we can obtain a merger agreement in which the
existing board approves of the prospective change in control,
obviating the need for more than $20 million of golden parachute
payments, then we believe it probable that we can raise our offer.
Among the reasons that we are now willing to commit more equity
capital to this transaction is the level of interest that has been
expressed to us from both financial and strategic buyers in
Dickstein Partners also responded to the questions posed by
Hills management in a letter sent to all shareholders dated June 12:
In sharp contrast, Mark Dickstein, who is chairman of the board
of Carson Pirie Scott & Co., and who led Carson's out of bankruptcy,
received $38,000 in director fees last year from Carson's
- approximately the same compensation as all other Carson's
Dickstein further commented, "Now that all our financing is
arranged, we believe the choice for Hills' shareholders is clear
- to vote for directors committed to a sale of Hills to the highest
bidder, with our acquisition proposal serving as a floor."
CONTACT: Mackenzie Partners Inc., New York
Stan Kay, 212/929-5940
Statement re opposition by official investment pool committee
FOUNTAIN VALLEY, Calif.--June 13, 1995--The committee representing more
than 240 cities, schools and special districts in the HREF="chap11.orange.html">Orange County bankruptcy case has objected to the motions
by the Orange County Committee to validate and roll over certain debt of the county.
This action was taken after a review of the pleadings and
documents that had a variety of adverse consequences to pool
participants, and had numerous provisions which may affect pool
participants adversely during a subsequent plan of adjustment by the
County of Orange.
The pleading filed by the pool committee acknowledges that it
still awaits conclusive word from the county of its obligation and
intent to pay all county debt in full, rather than trying to avoid
the payment of obligations thorough a "cram down" plan of
The pool committee attempted to have the pending motion
withdrawn or continued, in order to avoid conflict with the county
and county committee regarding the issues in the pending motion.
But the county committee was unwilling to continue or withdraw its
The pool committee has suggested that the county and the county
committee address the issues raised in the pending motions in a plan
of adjustment that would also provide clear direction on the
treatment of pool participants, but that proposal was also rejected.
The pool committee also recommended an option of immediately
disbursing to the holders of the county's short-term debt, over $500
million in reserves held by the county in return for an agreement to
resolve remaining obligations of the county to all creditors on the
same basis and at the same time. This proposal was also rejected.
The pool committee is hopeful that it will be able to reach an
accommodation with the county and the county committee before the
hearing on the motions on June 23.