SLM INTERNATIONAL COMPLETES THE SALE OF BUDDY L TOY AND FITNESS ASSETS
NEW YORK, NY--July 10, 1995--SLM
International, Inc. (OTC Bulletin Board: "SLMI") announced today that the Company
has completed the previously announced sale of substantially all of the
toy assets of Buddy L Inc. and Buddy L (Hong
Kong) Limited, subsidiaries of SLM International, to Empire of Carolina, Inc.
(AMEX:EMP). Empire purchased the toy assets of these subsidiaries
pursuant to a Bankruptcy Court-sanctioned auction proceeding held on
May 19, 1995. In addition, Empire purchased the toy assets of a
Canadian subsidiary of SLM.
According to the terms of the final agreement, Empire purchased
approximately $16.6 million of Buddy L accounts receivable,
inventory and equipment. Additionally, the consideration includes
approximately 757,000 shares of Empire common stock, $3.75 million
in cash and a five-year earnout based on earnings performance less
Separately, the company completed the previously announced sale
of the fitness assets of Buddy L in the United States and Canada.
The Buddy L fitness assets were sold to a group composed of members
of its fitness division management with financing provided by
Capstone Group, Inc. for approximately $3.2 million in cash.
Substantially all of the proceeds were paid to Buddy L.
The proceeds received from the sale of the toy and fitness
assets will principally be used to reduce SLM's indebtedness.
"We believe the completion of these transactions represents a
very positive step in the future of SLM International, as it allows
us to reduce our indebtedness and focus primarily on the growth of
our core business," stated Chief Executive Officer Howard
Zunenshine. "We are looking forward now to pursuing our goal of
establishing SLM as a leading marketer of sporting goods,
specializing in hockey equipment, in-line skating products and
Mr. Zunenshine also noted two other developments that, as
previously announced, are expected to benefit the Company. The
first is a Standstill Agreement between SLM and 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 SLM and have withdrawn involuntary
bankruptcy filings pending against SLM and its subsidiaries in
The second development is SLM's decision to retain 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 equity capital.
SLM International, Inc. designs, develops, manufactures and
markets a broad range of sporting goods on a worldwide basis.
CONTACT: SLM International, Inc.
Howard Zunenshine, (514) 331-5150
Morgen-Walke Associates, New York
David Walke/Melissa Garelick
Press: Lisa Bradlow
EMPIRE OF CAROLINA, INC. COMPLETES ACQUISITION OF ASSETS OF BUDDY L
DELRAY BEACH, Fla., July 10, 1995--Empire of Carolina,
Inc. (AMEX: EMP), today announced that the Company has completed the
previously announced acquisition of substantially all of the toy
assets of Buddy L Inc., Buddy L (Hong Kong)
Limited, and Buddy L Canada, subsidiaries of SLM International (OTC Bulletin
Board:SLMI). The toy assets of Buddy L were awarded to Empire in a Bankruptcy Court-
sanctioned auction proceeding held on May 19, 1995.
According to the terms of the final agreement, Empire will issue
to the creditors of Buddy L 792,000 shares of Empire common stock
and $3.75 million in cash. The creditors will also receive a five-
year earnout based on earnings performance of the company less any
offsets that relate to obligations not otherwise discharged by the
Bankruptcy Court order and expenses and any costs associated with
the possible relocation of facilities. As part of the transaction,
Empire will also purchase approximately $1.1 million and $14.9
million, respectively, of Buddy L accounts receivable and inventory.
Steven Geller, Chairman and Chief Executive Officer of Empire,
noted, "The acquisition of Buddy L is an exciting complement to
Empire's existing business and will significantly broaden our core
product lines. Moreover, we expect to realize substantial operating
efficiencies in manufacturing, marketing and distribution once the
acquisition is fully integrated."
Marvin Smollar, President and Chief Operating Officer, added,
"This acquisition will substantially increase our critical mass. In
1994, Buddy L generated approximately $129 million in revenue.
While there has been some erosion in the revenue base of Buddy L
during this difficult period, the core business remains vital, and
we believe that during 1996, operations can return to a revenue run
rate similar to that of 1994."
Empire of Carolina designs, develops, manufactures and markets a
broad range of basic plastic children's toys. Its Holiday Products
Division produces and markets decorative seasonal items including
Christmas, Halloween and Easter illuminated products. The Company's
full line of basic toys include the Big Wheel line of ride-on toys,
Grand Champion collectible horse figures, the MR-1 line of race car
sets as well as T.V. advertised and licensed products.
/CONTACT: Investor Relations: Naomi Rosenfeld or Betsy Brod, or
Press: Lisa Bradlow of Morgen-Walke Associates, 212-850-5600/
UDC confirms receipt of letter of interest from Pulte
TEMPE, Ariz.--July 10, 1995--UDC Homes Inc.
("UDC") confirmed today that it has received a letter from Pulte
Corp. ("Pulte") in which Pulte has indicated that it is interested
in considering whether to present a "proposal for a change of
control transaction that (would) be the basis for a plan of
reorganization" for UDC.
The letter from Pulte also stated that the presentation of a
Pulte proposal was subject to due diligence and other unspecified
matters within Pulte's sole discretion.
UDC said that the letter from Pulte did not contain any proposed
transaction terms, including with respect to a proposed purchase
price for UDC. If and when a proposal is presented by Pulte, UDC's
board of directors would consider such a proposal in light of its
fiduciary duties. There can be no assurance, however, that a
transaction with Pulte will be proposed or, if proposed, what the
terms of such a proposal might be. As a matter of corporate policy,
UDC does not expect to comment on the details of any proposal which
might be received by UDC from Pulte.
On May 16, 1995, UDC entered into a Stock Purchase Agreement
(the "DMB Stock Purchase Agreement") with DMB Property Ventures
Limited Partnership ("DMB"), a Phoenix based real estate investment
and development company, pursuant to which DMB would acquire all of
the equity of reorganized UDC, subject to certain terms and
conditions provided therein. On May 17, 1995, UDC Homes Inc. filed
a petition for relief under Chapter 11 of the Bankruptcy code with
the United States Bankruptcy court in the District of Delaware and
subsequently, on July 6, 1995, filed its first amended plan of
reorganization, pursuant to which DMB would acquire all of the
equity of reorganized UDC in accordance with the terms and
conditions of the DMB Stock Purchase Agreement. A hearing on the
disclosure statement relating to the reorganization plan is set for
August 3, 1995. Votes on the reorganization plan cannot be
solicited unless and until the disclosure statement is approved by
the Bankruptcy Court and transmitted to creditors.
CONTACT: Michael Singer
Arthur Schmidt and Associates
TELIOS ANNOUNCES RESULTS OF BALLOTING ON PROPOSED PLAN OF
SAN DIEGO, Ca--July 10, 1995--Telios
Pharmaceuticals Inc. (Nasdaq: TLIOQ) (the "company") announced in its ballot
report to the U.S. Bankruptcy Court for the Southern District of California
that every voting class of stakeholders in the company, including
the Preferred and Common shareholders, voted in favor of the
company's proposed Plan of Reorganization.
A hearing has commenced in the U.S. Bankruptcy Court for the
Southern District of California for the purpose of considering
confirmation of the company's Plan of Reorganization.
As previously announced, only holders of record on May 24, 1995,
of the company's Preferred Stock and Common Stock will be entitled
to receive treatment under the proposed Plan of Reorganization.
/CONTACT: Todd E. Simpson, CFO of Telios Pharmaceuticals,