BRADLEES BANKRUPTCY NEWS: FIRST ISSUE FREE
PRINCETON, N.J.--June 26, 1995--Bankruptcy
Creditors'
Service, Inc. today announced publication of BRADLEES
BANKRUPTCY
NEWS. As widely reported, Bradlees, Inc. (NYSE:
BLE),
based in
Braintree, Massachusetts, filed for protection from its
creditors
under chapter 11 of the United States Bankruptcy Code
this past
Friday.
"BRADLEES BANKRUPTCY NEWS - like our other
case-specific
bankruptcy newsletters - will provide on-going, in-depth
news and
reporting about the chapter 11 reorganization undertaken
by
Bradlees, Inc.," says Peter A. Chapman, President of
Bankruptcy
Creditors' Service, Inc., and Editor of BRADLEES
BANKRUPTCY NEWS.
Chapman explains that attorneys, creditors, and
investors
involved in chapter 11 bankruptcy cases the size of
Bradlees' BCSI's
case- specific newsletters to be an invaluable resource
while
attempting to wade through the mountains of paper that
are filed
with the Bankruptcy Court and long hours of court
hearings.
The first issue of BRADLEES BANKRUPTCY NEWS includes:
Chapman said that next week's issue will provide
subscribers
with a detailed review of
BRADLEES BANKRUPTCY NEWS is distributed on a
subscription basis
by e-mail or facsimile transmission for $45 per issue
plus nominal
transmission charges. New issues are published as
significant
activity occurs (generally every 10 to 20 days) in the
Bradlees
cases.
Chapman stated that one copy of today's first
issue of BRADLEES
BANKRUPTCY NEWS is available at no charge upon request.
Chapman further advised that individuals with
access to the
Internet may obtain copies of the first issue of BRADLEES
BANKRUPTCY
NEWS at http://bankrupt.com/chap11.bradlees.htmlor
ftp://bankrupt.com/Bankruptcy_News/Bradlees from the
InterNet
Bankruptcy Library.
/CONTACT: Peter A. Chapman of Bankruptcy Creditors'
Service, Inc.,
609-924-8949, or fax, 609-924-8963, or E-Mail:
peterbankrupt.com/
ELJER REPORTS ON U.S. BRASS BANKRUPTCY; RECEIVES
FAVORABLE RULING IN DIRECT CLAIMS CASE; REPORTS RULING IN
SUIT
AGAINST HOUSEHOLD INTERNATIONAL
DALLAS Texas--June 26, 1995--Eljer
Industries, Inc.
(NYSE:ELJ) today reported on recent developments in the
Chapter 11
bankruptcy of United States Brass
Corporation, its
indirect, wholly-
owned subsidiary; a favorable court decision in a direct
polybutylene plumbing claims case against Eljer
Industries and its
wholly-owned subsidiary Eljer Manufacturing, Inc.
("EMI"); and a
Delaware Chancery Court ruling in Eljer's suit against
Household
International, its former parent.
Eljer reported that U.S. Brass, Eljer Industries
and EMI have
filed an amended Plan of Reorganization and Proposed
Disclosure
Statement in the U.S. Brass Chapter 11 bankruptcy
proceeding. The
companies believe the amended Plan addresses concerns
raised by the
Bankruptcy Court in connection with the earlier plan
filed by U.S.
Brass, Eljer Industries and EMI. As with the earlier
Plan, the
amended Plan includes a separate proposed settlement with
Eljer, EMI
and Shell Oil Company ("Shell"). In addition to other
contributions
from Shell, Eljer and EMI, Shell would contribute up to
$200 million
to a Trust to pay claims related to the U.S. Brass
polybutylene
plumbing system. Shell made the resin from which U.S.
Brass
extruded the polybutylene pipe used in the system. A
hearing date
has not yet been set on the amended Disclosure Statement.
Eljer also reported that a hearing was held last
week by the
Bankruptcy Court on an amended Disclosure Statement filed
by the
Official Polybutylene Claimants Committee (the "PB
Committee") in
conjunction with its proposed Plan of Reorganization.
The lengthy
hearing addressed objections previously raised by U.S.
Brass, Eljer
and EMI, along with other parties. The Bankruptcy Court
gave no
indication when it would rule.
In response to the PB Committee Plan, Hoechst
Celanese
Corporation ("Hoechst") filed a motion to convert the
Chapter 11
reorganization case of U.S. Brass to a Chapter 7
liquidation. The
Hoechst motion asserts that a reorganization of U.S.
Brass was not
feasible under the PB Committee Plan. The Hoechst motion
did not
address the amended plan filed by U.S. Brass and the
Eljer entities.
A unit of Hoechst made the resin from which U.S. Brass
molded Celcon
acetyl fittings formerly used in the polybutylene
plumbing systems.
U.S. Brass, Eljer and EMI will oppose the Hoechst
motion. The
Bankruptcy Court has not set a date for a hearing on the
Hoechst
motion.
In a ruling favorable to Eljer Industries and EMI,
a Denver,
Colorado District Court dismissed Eljer and EMI from a
proposed
class action that alleged that Eljer and EMI were
directly liable
for defective polybutylene plumbing systems. In its
decision in
Adams et. al. v. Shell Oil Company, et. al., the Court
ruled that
the plaintiffs had failed to set forth any facts that
would
establish Eljer or EMI directly participated in the
design,
manufacture or distribution of allegedly defective
plumbing systems.
Scott G. Arbuckle, President and Chief Executive
Officer of
Eljer Industries, commented: "We are particularly
encouraged by the
favorable Denver District Court decision finding that
plaintiffs had
failed to establish any basis for holding that Eljer has
direct
liability in this polybutylene plumbing system matter.
It has
always been our position that U.S. Brass alone
participated in the
design, manufacture and distribution of the polybutylene
systems.
Also, we are convinced that the amended Plan of
Reorganization filed
by U.S. Brass, Eljer and EMI represents a viable means
of
satisfactorily resolving the polybutylene-related issues
for all
parties involved. The motion by Hoechst to challenge the
PB
Committee Plan by converting the case to a Chapter 7
liquidation
should not succeed because U.S. Brass is reorganizable,
especially
under our amended plan."
Eljer also reported that the Delaware Chancery
Court has issued
a decision that Eljer and EMI must proceed with their
litigation
against Household International, Inc., in the Superior
Court in
Delaware rather than in any other court. If the ruling
stands, it
will prevent Eljer and EMI from prosecuting their suit
against
Household in state court in Texas where it is currently
set for
trial in October. Eljer and EMI are considering whether
to appeal
the Chancery Court's ruling.
Mr. Arbuckle noted: "While we believe the case
should proceed in
Texas, we are as prepared to seek justice in the Delaware
court as
we are in the Texas court."
Eljer Industries, Inc. is a leading manufacturer
and marketer of
high quality building products, including plumbing,
heating and
ventilating products, for the residential and commercial
construction, remodeling and repair, and do-it-yourself
markets.
CONTACT: Eljer Industries, Inc., Dallas
George Hanthorn, (214) 407-2600
or
Morgen-Walke Associates, New York
Lynn Morgen/June Filingeri/Edward Nebb
(212) 850-5600
Ken Pieper
(214) 663-9390
Media Contact: Stan Froelich
(212) 850-5600