ELKINS PARK, Pa., Sept. 29, 1995 -- href="chap11.mortgage.html">Mortgage and Realty
Trust (NYSE: MRT) announced today that the United States
Court for the Central District of California has declared today to
be the effective date of the prepackaged plan of reorganization.
MRT commenced its bankruptcy case under Chapter 11 of the Bankruptcy
Code on August 18, 1995, to implement an agreement in principle
reached with certain holders of MRT's Senior Secured Uncertificated
Notes due 1995 which was incorporated into its prepackaged plan of
MRT is a self-administered real estate investment trust with a
portfolio of over 72 commercial, industrial and other real estate
assets. MRT has offices in Elkins Park, Pennsylvania, and Burbank,
/CONTACT: Daniel F. Hennessey, Treasurer of Mortgage and Realty
TRENTON, Mich., Sept. 29, 1995 -- href="chap11.mclouth.html">McLouth Steel Company
announced today that it had filed a voluntary petition seeking
reorganization under Chapter 11 of the U.S. Bankruptcy Code. The
Company said that it had taken this step after determining that a
Chapter 11 filing should enable a reorganization for the benefit of
the Company's creditors, customers and employees.
Mr. Joseph D. Corso, the Company's President and Chief Executive
Officer, said that the Company "expects to meet its day-to-day
operating needs, including the prompt payment of post-petition
invoices, and to pay employee wages in a normal manner." He also
said that McLouth Steel was having discussions with potential
investors regarding an investment in the Company with the objective
of substantially modernizing existing steelmaking operations.
McLouth Steel had previously announced the retention of Salomon
Brothers to assist in these discussions.
McLouth Steel is an integrated steel company with manufacturing
operations in Trenton and Gibraltar, Michigan, where it produces hot-
rolled and cold-rolled flat steel products.
/CONTACT: John Stoker, Vice President Finance & CFO of McLouth
LAS VEGAS, Nevada -- Sept. 29, 1995 -- Consistent
earlier announcement, Elsinore Corp. (ASE/PSE:ELS) confirmed Friday
that it would not make the quarterly interest payment of $150,000
due Sept. 30, 1995, on its $3 million in mortgage notes and the $3.5
million semi-annual interest payment due Oct. 1, 1995, on the
company's $57 million outstanding amount of first mortgage bonds.
Thomas E. Martin, president and chief executive officer,
observed that the well-publicized construction disruption in
downtown Las Vegas, the suspension of involvement in the Spotlight
29 Casino in Palm Springs, Calif., and the lack of any return from
its management of the 7 Cedars Casino in the state of Washington
have all contributed to the company's inability to meet its debt
Martin said management was entering into negotiations with major
noteholders to restructure the company's financial obligations which
could lead to a negotiated compromise accomplished through a
consensual plan of reorganization under the Bankruptcy Code.
Martin added that the reorganization could involve a conversion
of a portion of the company's existing debt for common stock
resulting in a significant dilution to the equity of existing
In addition, Martin noted that the American Stock Exchange was
conducting a near term evaluation of the company with respect to its
continued listing on the exchange.
Martin concluded that there could be no assurance that an
agreement would be reached with existing noteholders or that listing
on the American Stock Exchange would be continued.
For information on Elsinore via facsimile at no cost, call
800/PRO-INFO and dial company code 177.
CONTACT: Elsinore Corp., Las Vegas,
Thomas E. Martin, 702/387-5110;
Gary Acord, 702/387-5146
The Financial Relations Board Inc.,
Daniel Saks, 310/442-0599 (general info);
Sue Caulton, 415/986-1591 (analysts)
EL PASO, Texas--Sept. 29, 1995--El
Electric Company (EPE) announced today that it has filed a
Reorganization which reduces the company's total debt by
approximately $800 million and should allow EPE to emerge from
bankruptcy during the first quarter of 1996. The company has
developed the primary elements of the Plan with the Unsecured
Creditors' Committee and the Equity Security Holders' Committee, and
believes those committees will support the Plan.
Under the proposed Plan of Reorganization, EPE's capital
structure will consist of approximately $1.2 billion of senior
secured debt, including approximately $200 million of pollution
control bonds, $100 million of preferred stock, and common shares.
The Plan of Reorganization contemplates two alternative methods
for the company to emerge from bankruptcy. Under the first
alternative, EPE proposes to use the proceeds of an underwritten
public offering of mortgage bonds to repay the claims of existing
secured creditors in full. If market conditions in early-1996 will
not permit an underwritten offering, the company's Plan would be
consummated through a distribution of new senior secured debt to
existing secured creditors in the full amount of their claims.
Under the company's Plan of Reorganization, unsecured creditors
will receive approximately $150 million in cash, $450 million of new
secured debt, $100 million of preferred stock, and 85 percent of the
reorganized company's common stock.
Existing preferred and common shares of the company will be
cancelled, and holders will receive 15 percent of the reorganized
company's common stock, with 12 percent of the new common stock
going to the existing preferred shareholders and 3 percent going to
the existing common shareholders. In addition, the existing
preferred and common shareholders will share equally in the first
$20 million of any recovery by EPE in its pending litigation with
Central and South West Corporation.
The proposed Plan also contemplates certain management changes.
David H. Wiggs Jr. has agreed to remain as chairman and chief
executive officer until a replacement has been named. The search
for a new CEO is being conducted by a five-member management search
committee headed by Wiggs, a current Board member, and the three
members of the Official Committee of Unsecured Creditors.
The company also will have a new 11-member Board of Directors,
consisting of Wiggs, three members of the current Board, and seven
new members to be selected through a process directed by the
management search committee.
After completing his service as chairman and CEO, Wiggs will
serve for two years as a consultant and member of the Board of
Directors. He will retire thereafter.
The company expects that voting on the Plan will begin in mid-
November, promptly after Bankruptcy Court approval of EPE's
Disclosure Statement. Plan confirmation is expected in early-
January 1996, with a projected effective date later that month.
El Paso Electric is an electric utility serving approximately
270,000 customers in El Paso, Texas, and an area of the Rio Grande
Valley in West Texas and Southern New Mexico, and wholesale
customers located in such diverse locations as Southern California
CONTACT: El Paso Electric,
National and regional media:
Alan Lee Bunnell, 915/543-5823 (corporate spokesperson)
Henry Quintana Jr., 915/543-5824 (supervisor, corporate
John Droubay, 915/543-5710 (treasurer)
stockbrokers and shareholders:
Office of the Secretary, 800/592-1634 or 800/351-1621
WARREN, Mich., Sept. 29, 1995 -- F & M
(Nasdaq: FMDDQ) a debtor in possession, announced today it will
close twenty stores in the Chicago market area during the next 90
days. F & M will continue to operate six locations in Chicago.
After these store closures, the Company will have 57 store locations
operating in Detroit, Chicago, Baltimore and Washington, D.C.
In connection with these store closings and the previously
announced sale of six stores in Toledo, Ohio and Milwaukee,
Wisconsin, the Company has recorded a charge of approximately $17
million for reserves related to these store closures. F & M has
also reduced the recorded net book values of its long-lived assets
related to its total business operations by approximately $40
million based on its experience to date in the divestiture of the
Chicago, Milwaukee and Toledo store locations.
The Company will continue its previously announced strategy to
seek purchasers for the remainder of its business operations.
F & M operates super drugstores offering a wide selection of
branded health and beauty care merchandise, cosmetics and household
consumables and supplies at every day low prices. The Company is
operating and managing its business as a debtor in possession under
chapter 11 of the United States Bankruptcy Code. The chapter 11
reorganization case was commenced by the Company on December 5,
STORES TO BE CLOSED
184 W. Roosevelt Road, Villa Park, IL
520 Lake Street, Addison, IL
4532 S. Kedzie, Chicago, IL
2611 Grand Avenue, Waukegan, IL
1608 Larkin, Crest Hill, IL
1206-1208 W. 75th Street, Downers Grove, IL
3305 W. 115th Street, Merrionette Park, IL
215 N. Harlem, Forest Park, IL
16717 Torrence Avenue, Lansing, IL
4553 W. 211th Street, Matteson, IL
4343 N. Kedzie, Chicago, IL
5140 W. Diversey Avenue, Chicago, IL
16040 S. Harlem (159th), Tinley Park, IL
850 W. Main, West Dundee, IL
402 W. Army Trail Road, Bloomingdale, IL
1400 E. Golf Road, Space .650, Rolling Meadows, IL
5593 Northwest Hwy., Crystal Lake, IL
1556 Butterfield, Downers Grove, IL
1035 E. Oakton, Des Plaines, IL
1900 S. Harlem, North Riverside, IL
/CONTACT: Laura Kendall, Sr. V.P. & Chief Financial Officer of
F & M Distributors, 810-758-1400, Ext. 251/