Rockefeller Center Properties announces results of operations for the second
quarter and six months ended June 30, 1995
NEW YORK, NY--July 21, 1995--Rockefeller
Center Properties Inc. (RCPI) announced today a net loss in the second
quarter of 1995 of $17,818,000, or $.46 per share, as compared to
net income of $6,551,000, or $.17 per share, for the same period in
1994. The company also reported a net loss of $25,296,000, or $.66
per share, for the six months of 1995 as compared to net income of
$13,218,000, or $.35 per share, for the previous year's comparable
The loss during the current second quarter and six month period
is a result of the May 11, 1995 chapter 11 filing by the Borrower
(two partnerships, Rockefeller Center Properties and RCP
Associates). As a result of the Borrowers' action the company is
required for accounting purposes to limit recognition of income on
the mortgage loan for six months ended June 30, 1995 to the cash
interest actually received from the Borrower. The results for the
six months ended June 30, 1995 also include higher general and
administrative expenses principally due to the Borrowers' chapter 11
filing in addition to higher interest expense and amortization of
deferred debt issuance costs, partially offset by a recorded
increase in earnings of $1,428,000, or $.04 per share, representing
a current non cash adjustment for the stock appreciation rights
which were issued in December 1994.
The company also reported cash flow from operating and investing
activities of $53,415,000 for the six months ended June 30, 1995.
Cash flow from investing activities consisted of $50 million
realized from draw downs under the company's letters of credit
following the Borrowers' failure to make the interest payment due
May 31, 1995. Due to the uncertainties caused by the Borrowers'
chapter 11 filing, for accounting purposes only, this $50 million
has been applied to reduce the carrying value of the mortgage loan.
RCPI stated that it continues to explore a wide range of
strategic alternatives. The company emphasized that no decisions
have been reached concerning any course of action and that no
assurances could be given that any transaction will be entered into.
The exploration of a broad range of possibilities is part of the
company's continuing efforts to insure that RCPI considers all
possibilities that could be in the best interests of the company and
RCPI is a mortgage real estate investment trust whose principal
asset is a $1.3 billion participating convertible mortgage loan to
the Borrower, which is 100% controlled by Rockefeller Group Inc.
(RGI). Mitsubishi Estate Company Ltd. controls an 80% equity
interest in RGI and Rockefeller Family Interests hold the remaining
20%. On May 11, 1995, the Borrower commenced cases under Chapter 11
of the bankruptcy law in the United States Bankruptcy Court for the
Southern District of New York.
RCPI is listed on the New York Stock Exchange as "RCP". As of
July 20, 1995 there are 38,260,704 shares of common stock
Quarters ended June 30, Six Months ended June 30,
1995 1994 1995 1994
Revenues $ 339,000 $27,262,000 $20,785,000 $54,532,000
Interest expense $21,203,000 $19,407,000 $42,568,000 $38,679,000
administrative $ 1,933,000 $ 1,128,000 $ 3,209,000 $2,283,000
issuance costs $ 883,000 $ 176,000 $ 1,732,000 $ 352,000
tion rights $ 5,862,000 $ -- $ 1,428,000 $ --
Net (loss) income $(17,818,000) $ 6,651,000 $(25,296,000) $13,218,000
Net (loss) income
per share $ (0.46) $ 0.17 $ (0.66) $ 0.35
CONTACT: Rockefeller Center Properties Inc.
Stephanie Leggett Young, 212/698-1440
Michael Kinnicutt, 212/373-0225
PENNSYLVANIA ATTORNEY GENERAL TO JOIN CRIMINAL INVESTIGATION OF NEW ERA
HARRISBURG, Pa.--July 21, 1995--The Pennsylvania
Attorney General's Office will join with the U.S. Attorney's Office
for the Eastern District of Pennsylvania in the criminal
investigation of the collapse of the Foundation
for New Era Philanthropy, U.S. Attorney Michael R. Stiles and Acting Attorney
General Walter W. Cohen announced today.
Stiles and Cohen said Senior Deputy Attorney General Lawrence
Barth of the Attorney General's Charitable Trusts and Organizations
Section will be cross-designated to work on the criminal
investigation with the U.S. Attorney's Office.
At the request of the U.S. Attorney, the Attorney General's
office will move to stay its civil action in Commonwealth Court
against John G. Bennett Jr., president of the Foundation for New Era
Philanthropy, and will cease enforcement of subpoenas issued to
other individuals associated with New Era.
The Foundation for New Era Philanthropy, based in Radnor, filed
for bankruptcy in May, owing millions of dollars to individuals and
nonprofit groups, including charities, colleges, libraries and
The Attorney General's Charitable Trusts and Organizations
Section filed suit in Commonwealth Court on May 16 against New Era
and Bennett, charging that the defendants defrauded many of the
charitable institutions they promised to help. Commonwealth Court
froze the defendants' assets at the state's request.
The Attorney General's office on June 8 agreed to remove New Era
as a defendant in its lawsuit. Cohen said that forcing New Era to
litigate the suit would have depleted funds that ultimately can be
used for restitution to charities that lost their investments.
Under a consent agreement negotiated by the Attorney General's
office with New Era, the foundation is permanently barred from
conducting charitable solicitations in Pennsylvania.
"We are pleased to be working with the U.S. Attorney's office
in this investigation, and we will continue to actively participate
in all proceedings before the Bankruptcy Court," Cohen said.
/CONTACT: Jack Lewis, assistant press secretary of the Office of
Attorney General, 717-787-5211, or at home, 717-657-9840/
GRAND PALAIS RIVERBOAT INC., RECEIVES LETTER OF INTENT FOR SALE OF
NEW ORLEANS RIVERBOAT
DENVER, Co.--July 21, 1995--Hemmeter Enterprises Inc., and
the joint venture between affiliates of Hyatt Corporation and
Players International Inc. (Nasdaq-NNM: PLAY), today announced they
have entered into a letter of intent with respect to a sale by HREF="chap11.gpalais.html">Grand
Palais Riverboat Inc., an affiliate of Hemmeter, of a New Orleans-
based casino riverboat. The joint venture will petition the
regulatory authorities to approve the transaction.
The agreement calls for the purchase of all of Grand Palais'
assets for a price of $55 million plus the assumption of certain
liabilities. Grand Palais must deliver the assets free and clear
with all liabilities satisfied, including bondholder debt, bank debt
and trade payables. It is expected that in order to timely
accomplish the sale while providing for the protection of creditors,
Grand Palais will file a petition seeking reorganization under
Chapter 11 of the Federal Bankruptcy Code.
The purchaser has indicated that it is prepared to provide
interim financing to permit Grand Palais to maintain its riverboat
and pay for the associated costs of its reorganization.
The parties intend to close the sale and make distributions to
creditors by Oct. 15, 1995. Such closing is subject to a number of
contingencies, including regulatory, director and bondholder
approvals and appropriate court order.
The Hyatt/Players joint venture announced it is prepared to
recommence negotiations with Capital Gaming International Inc., for
the purchase of its New Orleans casino riverboat in the hope that a
two-boat purchase can be consummated with one boat remaining in New
/CONTACT: Stephen J. Szapor Jr., executive VP of Hemmeter
Belle Casinos, Inc., and Biloxi Casino Belle, Inc.,
debtors-in-possesion in Bankruptcy Case Nos. 94-08533-SEG and
94-08534-SEG, pending before the United States Bankruptcy Court for the
Southern District of Mississippi, Biloxi Division, filed a Joint
Liquidating Chapter 11 Plan of Reorganization and a Disclosure Statement
relating thereto with the Court on July 17, 1995. No hearing on the
adequacy of the disclosure statement has been scheduled. The Effective
Date will occur 10 business days following Confirmation. The Debtor is
represented by Jeffrey D. Rawlings, Esq., of Rimmer, Rawlings, MacInnis &
Hedglin, P.A., in Jackson, Mississippi. A copy of the Debtor's Plan and
Disclosure Statement is available from Bankruptcy Creditors' Service,
Inc., for $40.
BMI Land Co., Inc.
BMI Land Co., Inc., debtor and debtor-in-possesion in
Bankruptcy Case No.
B-94-31231, pending before the United States Bankruptcy Court for the
Western District of North Carolina, Charlotte Division, filed a Chapter 11
Plan of Reorganization and a Disclosure Statement relating thereto with
the Court on July 5, 1995. A hearing on the adequacy of the disclosure
statement is scheduled for August 22, 1995. The Effective Date will occur
60 days following Confirmation. The Debtor is represented by Charles M.
Ivey, III, Esq., and James K. Talcott, Esq., of Ivey, Ivey, McClellan &
Gatton, L.L.P., in Greensboro, North Carolina. A copy of the Debtor's Plan
and Disclosure Statement is available from Bankruptcy Creditors' Service,
Inc., for $20.