Value Merchants Inc. reports June sales results
MILWAUKEE, Wisconsin--July 7, 1995--Value
Merchants Inc. (OTC - VUMIQ.BB) today reported that for the five weeks ended July
1, 1995, the company's 214 Everything's $1.00 total and comparable
stores had a sales decrease of 13.9 percent from a year ago to
$9,807,000 from $11,392,000.
For the 22 weeks of fiscal 1995, sales were 15.0 percent below a
year ago totalling $42,877,000 compared with $50,455,000 a year ago.
All stores and comparable stores have been operating prior to
On June 27, 1995, the Plan of Reorganization of Value Merchants
Inc. and its wholly-owned subsidiary Everything's A Dollar Inc.
became effective resulting in the companies' emergence from
bankruptcy. The company expects to distribute certificates for
4,235,294 new shares of common stock to its current shareholders and
to its secured and unsecured creditors within the next 60 days and
has applied to NASDAQ to list the company's new common stock.
Value Merchants Inc. operates 214 Everything's $1.00 retail
stores nationwide offering value-oriented close out merchandise.
CONTACT: Value Merchants Inc., Milwaukee
Gary I. Kastel, 414/274-2976
FIRST CONNECTICUT REPORTS EARNINGS
BRIDGEPORT, Conn.,--July 7, 1995--The
First Connecticut Capital Corporation today reported an after-tax loss of $646,000
or $.55 a share for the fiscal year ended March 31, 1995 compared to a
net loss of $5,684,000 or $4.84 a share for the previous year. The
loss for the previous year mostly resulted from the sale of a
portfolio of loans and real estate.
First Connecticut also reported it received a final decree
during the just-completed year closing its chapter 11 bankruptcy
case. It also received licenses from the state of Connecticut
Department of Banking as a first and second mortgage lender/broker.
The company said it intends to expand the mortgage brokerage portion
of its business.
FIRST CONNECTICUT CAPITAL CORPORATION
(In Thousands Except Per Share Amounts)
For The Year Ended March 31,
Interest, Fee and Servicing Income 510 1,836
Net loss Before Income Tax Benefit 643 9,118
Income Tax (Provision) Benefit (3) 3,434
Net Loss 646 5,684
Loss Per Common Share .55 4.84
Book Value Per Share 1.59 2.14
Shares Outstanding 1,173,382 1,173,382
/CONTACT: David Engelson, President of The First Connecticut
Capital Corporation, 203-366-4726/
GOV. RIDGE ANNOUNCES CAPITAL LOANS FOR CLARK BAR AMERICA
PITTSBURGH, PA,--July 7, 1995--Gov. Tom Ridge today announced
the approval of two capital loans totaling $700,000 that will enable
Clark Bar America Inc. to occupy the former D.L. Clark Co. facility in
Pittsburgh. These loans will help to retain and create 116 jobs.
Clark Bar America Inc. was established to acquire the assets of
D.L. Clark Co. and Wayne Candies Inc. from the HREF="chap11.pittsburgh.html">
Pittsburgh Food & Beverage Bankruptcy Trustee.
"The Clark Bar has been part of western Pennsylvania history for
over 100 years. These loans will help to ensure Clark's place in
this community and Pennsylvania for many years to come," Ridge said.
"I'm pleased that the Commonwealth has played an active role as
Clark Bar America gets the D.L. Clark candy facility back on its
A $500,000 capital loan is being awarded by the Department of
Commerce's Machinery and Equipment Fund, and a $200,000 loan is
being awarded by the department's Pennsylvania Capital Loan Fund to
be used by Clark Bar America Inc. These funds will be used to move
the machinery and equipment from the Wayne Candies Inc. facility to
the Pittsburgh facility. Wayne Candies' assets are needed to
produce a special candy bar called the Bun Bar.
Ridge noted that the capital loan program helps to strengthen
Pennsylvania's manufacturing base by enabling companies to upgrade
and expand their industrial facilities.
Clark Bar America began manufacturing the Clark Bar, Slo-Poke
and Black Cow candy bars in June, which were previously produced by
D.L. Clark Company.
The total project is expected to cost $6.1 million, including
/CONTACT: Steve Miskin, 717-783-1116, or Lynn Lawson, 717-783-1132,
both of Commonwealth News Bureau/
HAMLIN HOLDINGS TERMINATES PURCHASE AGREEMENT
WARREN, Ohio,--July 7, 1995--Copperweld
Steel Company announced today that it had been notified by Hamlin Holdings that
Hamlin Holdings was terminating its agreement to purchase the assets
of Copperweld Steel because Hamlin had been unable to negotiate a
satisfactory agreement with the United Steelworkers of America,
which was a condition to Hamlin's obligations under that agreement.
Hamlin and the United Steelworkers had reached a tentative agreement
which was subject, among other conditions, to the negotiation of a
consensual plan or reorganization of Copperweld satisfactory to the
United Steelworkers. However, recent attempts by the United
Steelworkers and the creditors committee to negotiate the
distribution of proceeds under such a plan have reached an impasse.
Donald Caiazza, President and C.E.O., stated that, "this impasse
is unusual and highly unexpected since both proposals earmark the
majority of the proceeds to a VEBA fund that would provide
healthcare coverage to retirees.
"The talented management staff and skilled hourly workforce of
Copperweld Steel have worked very hard for the past three and one-
half years to reverse the losses and now it's time for a new
beginning. We have become a good reliable company, focused on
servicing the needs of our customers and negotiations with another
purchaser have commenced."
Copperweld Steel Company is a producer of special quality carbon
and alloy steel bar products and a leader in SBQ technology. The
Warren based company, together with its non-operating parent, CSC
Industries, has been operating under the protection of Chapter 11 of
the Bankruptcy Code since November 1993.
/CONTACT: Donald Caiazza, President and C.E.O., of Copperweld Steel
SOLO SERVE CORPORATION ANNOUNCES CONFIRMATION OF PLAN OF
REORGANIZATION, JUNE SALES RESULTS
SAN ANTONIO,Texas, --July 7, 1995--Solo Serve
Corporation (Nasdaq-NNM: SOLOQ) announced that today its proposed Plan of
Reorganization, as amended (the "Plan"), was confirmed by the United
States Bankruptcy Court, Western District of Texas, San Antonio
The announcement was made by Timothy L. Grady, chief operating
officer of Solo Serve, who said that the company had emerged from
Chapter 11 reorganization within a year of its original filing.
"We are very pleased with the results of today's hearing," Grady
said. "There was no opposition to the Plan from our creditors and no
competitive plan was offered. Further, based on recent discussions
with factors who provide financing to our vendors, we believe we
have full trade support. This support is critical in the retail
business, since this access to trade credit will support the
necessary flow of inventory in our stores. We are thankful to our
customers and 1,200 employees for supporting us in this process."
The Plan provides for a $2.5 million equity infusion by General
Atlantic Corporation, the company's principal stockholder, and a
distribution to unsecured creditors of $.725 per dollar of Allowed
Unsecured claims. Under the Plan, existing stockholders retain
approximately 66 percent of the post-reorganization equity of the
company, exclusive of shares reserved for issuance pursuant to stock
incentive plans for senior management and directors.
The Effective Date of the Plan is anticipated to be July 18,
1995. On the Effective Date, a two-for-one reverse split of the
common stock will be consummated and David P. Dash, currently the
president of the company, will become chief executive officer of the
company. Robert J. Grimm, currently chief executive officer of the
company, will remain chairman of the board of the company. The
company suggested interested parties should refer to the plan itself
and the related Disclosure Statement for additional details
regarding the Plan of Reorganization.
Separately, the company today reported sales of $10.4 million
for the five-week period ended July 1, 1995 on the 29 Solo Serve
stores continuing in operation, all of which were in operation in
June 1994. The company's comparable store sales decreased 3.3
percent during the five-week period ended July 1, 1995, as compared
with the same period in 1994. "These sales were in line with our
expectations," Grady said. Total store sales in June 1994, when the
company operated 39 Solo Serve stores and eight Half & More stores,
were $15.4 million, of which $4.3 million was associated with the
stores that are now closed. The company's year-to-date sales of
$43.9 million for the 22 weeks ended July 1, 1995 represents a
decrease of 32.9 percent from sales of $65.3 million for the same
period in 1994. The company's year-to-date comparable store sales
decreased 9.2 percent.
"We are looking forward to moving ahead successfully, with the
focus on improving operating results. We believe the company's
reduction in expenses and reduced scale of operations, coupled with
an appropriately focused merchandising strategy and access to trade
credit, establish the necessary foundation for restoring our
company's competitive strength."
The company also announced today that the company has requested
a temporary exception from the Nasdaq National Market's minimum $1
bid price in order to permit its stock to continue to be traded on
the Nasdaq National Market. Nasdaq has scheduled a hearing on the
company's request for July 13, 1995. The company expects to receive
a determination from the NASD in response to its request within four
weeks after the hearing. If the company does not receive the
temporary exception and the company's stock ceases to be quoted on
the Nasdaq National Market, the company would request inclusion of
its stock in the Nasdaq Small Cap Market. If the company's stock
does not qualify for inclusion on the Small Cap Market, it would
begin trading on the OTC Bulletin Board Service or over the counter
in the pink sheets.
Solo Serve Corporation operates a chain of off-priced retail
stores offering a wide selection of name brand and other merchandise
at prices substantially below traditional department and specialty
stores. The company currently has 29 Solo Serve stores in Texas,
Louisiana and Alabama.
/CONTACT: Timothy L. Grady of Solo Serve Corporation, 210-662-6262/
SIMMONDS COMMUNICATIONS LTD. ANNOUNCES PLANS TO MAKE AN INVESTMENT IN HELIX
TORONTO, Canada--July 7, 1995--Simmonds Communications Ltd. ("SCL")
today announced that it has entered into a Letter of Intent with HREF="internat.canada.helix.html">Helix Circuits Inc. ("HCI") to participate in a
Private Placement that is
currently being undertaken as part of HCI's restructuring under the Bankruptcy and
Insolvency Act. Under the terms of the Letter of Intent, SCL and
others will provide $2.4 million of the maximum $6 million to be
raised through a Private Placement of convertible debentures. SCL
will also enter into a management services contract to assist HCI
with its strategic plan. The completion of this transaction is
subject to certain conditions and approval of the Boards of
Directors of SCL and HCI. A definitive agreement is expected to be
reached by July 14, 1995.
John Simmonds, SCL President, stated "With its operations
turning around, HCI represents an opportunity to get in on the
ground floor of the Printed Circuit Board industry in North America.
HCI's operations fit well with SCL's electronic-based divisions - in
particular providing vertical integration possibilities on the
Helix Circuits Inc. is Canadian manufacturer of high
technology, multi-layer circuit boards for the telecommunications
and information processing industries. The company's shares trade
on the Toronto Stock Exchange (Symbol- HLX)
Simmonds Communications Ltd., Toronto, Ontario, is a diversified
electronics company involved as a manufacturer, distributor, and
systems integrator in the global wireless communications market and
the production and distribution of electronic components. SCL is
listed on The Toronto Stock Exchange (Symbol - SMM).
CONTACT: Brian Faughnan
Simmonds Communications Ltd.
(416) 221-1900 ext. 230
EASTERN AIRLINES PAYS ANOTHER $28 MILLION TO LARGE CREDITORS
MIAMI,Florida,--July 7, 1995--Reorganized HREF="chap11.eastern.html">Eastern Airlines announced today that it had made a
totaling $28.6 million to holders of general unsecured claims greater than
$100,000. The Pension Benefit Guaranty Corporation, the federal
agency that guarantees the pension benefits of former Eastern
employees, received over $14 million of the distribution.
This second distribution represents 2.50 cents per dollar of the
allowed claims greater than $100,000. Added to the initial
distribution in April of 4.25 cents per dollar, the total
distribution to date to large creditors amounts to 6.75 cents per
dollar of the allowed claim. This compares with the allowed claims
under $100,000 (including all employee and consumer claims) which
were paid 11 cents per dollar in February in accordance with the
plan of reorganization approved by the U.S. Bankruptcy Court.
John J. Sicilian, Chairman and Liquidating Agent, said that,
"Eastern continues to believe that the range of recoveries that
formed the basis of the plan of reorganization approved by the court
are an accurate measure of the likely recoveries that the remaining
large creditors can expect over time." Eastern plans to continue
distributions to creditors with claims over $100,000 throughout 1995
and 1996. "The amount and timing of these subsequent distributions
will depend upon the actual recovery experience and claims
disposition process," said Mr. Sicilian.
/CONTACT: John J. Sicilian, Eastern Airlines, 305-873-3455/
Sunrise Energy Services, Inc. reports closing of asset sale and
DALLAS, Texas--July 7, 1995--Sunrise
Energy Services, Inc. (a nationwide, non-regulated merchant of natural gas and
natural gas services) announced that, together with its wholly owned
operating subsidiaries, it has closed the previously announced asset
sale to Enserch Gas Marketing, Inc., a wholly-owned subsidiary of
ENSERCH Corporation (ENSERCH), whereby ENSERCH acquired
substantially all of the assets of the Company's operating
subsidiaries effective as of June 30, 1995.
Such sale was approved by the United States Bankruptcy Court for
the Northern District of Texas, Dallas Division, and provided a
consideration of $8,000,000 in cash for the natural gas purchase and
sale contracts, transportation and management services agreements,
billing and computer systems and other assets comprising the
companies' business operations.
On November 15, 1994, four of the Company's operating
subsidiaries (Consolidated Fuel Corporation, SunPacific Energy
Management, Inc., Sunrise Energy Marketing Company and Sunrise
Energy Company) filed for voluntary relief under Title 11, Chapter
11, of the United States Code. On June 14, 1995, the Bankruptcy
Court approved the sale of assets to ENSERCH and in a bench ruling,
confirmed the plans of reorganization of such subsidiaries.
The Company further announced that as a result of the asset
sale, on July 7, 1995, Sunrise Energy Services, Inc. filed in
Dallas, Texas for protection pursuant to a voluntary petition under
Chapter 11, Title 11 of the United States Code.
The common shares of Sunrise Energy Services, Inc. currently do
not trade on either the American Stock Exchange or the Official List
of the London Stock Exchange.
CONTACT: Sunrise Energy Services, Inc., Dallas
Philip D. Devlin, 214/385-1616