TCR_Public/951101.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



Eljer Industries announces third quarter results

        
             DALLAS--November 1, 1995--Eljer Industries,
        Inc. (NYSE:ELJ) today reported results for the third quarter and
        nine months of fiscal 1995 ended October 1, 1995.  
        


            For the third quarter, net income rose 6% to a record $4,522,000
        or $0.63 per share compared with net income of $4,265,000 or $0.60
        per share in the same quarter of 1994.  Operating income increased
        11% to $8,840,000 and included a nonrecurring gain of $2.7 million
        resulting from pension plan amendments.  Net sales for the 1995
        third quarter were $102,752,000 compared with $107,872,000 in the
        third quarter of 1994.  
        


            For the first nine months of 1995, net income was $2,434,000 or
        $0.34 per share on net sales of $294,223,000, compared with
        $7,011,000 or $0.99 per share on net sales of $302,103,000 in the
        same period of 1994.  Operating income was $14,378,000 compared with
        $16,089,000 in the first nine months of 1994.  
        


            Third quarter sales were impacted by continued softness in the
        U.S.  and Canadian housing markets which lowered sales in all the
        Company's North American businesses.  This was partially offset by
        increased European sales, which benefitted from favorable currency
        exchange rates.  Additionally, while the third quarter gross margin
        of 28.0% declined in comparison to the same quarter of 1994 because
        of continued high raw material costs, it improved from the 24.7%
        reported in the 1995 second quarter.  This was due primarily to
        obtaining price increases on many of Eljer's products which offset
        some of the substantial raw material cost increases incurred earlier
        in the year, and a gain recorded in connection with amendments to
        certain of the Company's pension plans.  The pension plan amendments
        reflect a change in Eljer's approach toward employee retirement
        plans which includes providing increased benefits under its 401(k)
        plan in lieu of certain of its pension plans.  
        


            The Company also reduced third quarter selling and
        administrative expense by $3.7 million from the third quarter of
        1994 through reductions in advertising and European administrative
        expenses as well as through the pension plan amendment.  Litigation
        costs of $2,217,000 for the 1995 third quarter include a $202,000
        reserve reduction to maintain the net book value of United States
        Brass Corporation, the Company's indirect, wholly-owned subsidiary,
        at zero.  For the first nine months of 1995, the reserve reduction
        totaled $2,443,000.  U.S. Brass,
Eljer Manufacturing and the
        Company filed an amended Plan of Reorganization and disclosure
        statement in U.S.  Brass' voluntary Chapter 11 bankruptcy on June
        16, 1995.  Third quarter 1995 interest costs increased $1,033,000
        over the 1994 third quarter level reflecting rate increases on the
        Company's debt.  
        


            Scott Arbuckle, President and Chief Executive Officer,
        commented: "Our third quarter performance has returned Eljer to
        profitability, despite reduced sales in North America.  However, the
        operating environment remains very competitive.  U.S.  housing
        starts are 8% below last year and raw material costs remain
        unusually high.  We are pleased that our efforts to reduce costs are
        proving effective and have enabled us to balance necessary price
        increases with the need to remain competitive in our markets.  We
        expect to see the further benefits of our actions in 1996."  
        


            Eljer Industries, Inc.  is a leading manufacturer and marketer
        of high quality building products, including plumbing, heating and
        venting products, for the residential and commercial construction,
        remodeling and repair, and do-it-yourself markets.  
        


        
                       ELJER INDUSTRIES, INC. AND SUBSIDIARIES
                          CONDENSED STATEMENTS OF INCOME
                                    (unaudited)
                     (In thousands, except per share amounts)
        
                          For the Three Months  For the Nine Months
                                  Ended                Ended
                            10/1/95   10/2/94     10/1/95  10/2/94
        
        NET SALES              $102,752  $107,872    $294,223 $302,103     
                                   
        COST OF SALES            74,016    75,850     219,279  218,378    
        
        GROSS PROFIT             28,736    32,022      74,944   83,725  
        
        SELLING & ADMINISTRATIVE
           EXPENSES              17,679    21,376      56,098   61,701     
        
        LITIGATION COSTS          2,217     2,664       4,468    5,935     
        
        INCOME FROM OPERATIONS    8,840     7,982      14,378   16,089
        
        OTHER (INCOME) EXPENSE, net 321       352       1,252    1,109
        
        INTEREST (INCOME)
         EXPENSE, net             3,441      2,408      10,106    8,064
          
        INCOME BEFORE INCOME
           TAXES                  5,078      5,222       3,020    6,916
        
        INCOME TAX EXPENSE
          (BENEFIT)                 556       957         586       (95)
        
        NET INCOME             $  4,522 $   4,265    $  2,434 $   7,011     
                                   
        EARNINGS PER SHARE    $    0.63$     0.60   $    0.34 $    0.99
        
                                   
        WEIGHTED AVERAGE NUMBER OF
        COMMON SHARES         7,137     7,130       7,132     7,117     
         

        CONTACT: Eljer Industries, Inc., Dallas,
                 Brooks Sherman, (214) 407-2600
                              or
                 Morgen-Walke Associates, New York,
                 Lynn Morgen/June Filingeri;
                 Stan Froelich, Media contact
                 (212) 850-5600
                              or  
                 Ken Pieper, (214) 663-9390 (in Dallas)



        COBRA INDUSTRIES REACHES AGREEMENT WITH BANK; COMPANY ALSO FINDS
        BUYER FOR ITS TRISTAR DISTRIBUTION BUSINESS

        
            GOSHEN, Ind., Nov. 1, 1995 -- Cobra
Industries, Inc.

        (NYSE: COI) announced today that it has reached an agreement with
        Congress Financial Corporation which gives the company the complete
        use of its available cash and sale proceeds through December 9, 1995
        in its Chapter 11 reorganization.  In connection with that Court-
        approved agreement, Cobra and Congress have agreed to commence
        immediate negotiations concerning possible debtor-in-possession
        (DIP) financing. Any such financing agreement would be subject to
        the further approval of the Court.
        


            The recreational vehicle manufacturer also announced today that
        it has signed a contract to sell its profitable, but non-strategic,
        TriStar distribution business.  The sale is expected to bring Cobra
        approximately $6 million in both cash and reduced liabilities, and
        is pending court approval on November 16, 1995.
        


            As previously announced, Cobra filed a petition for
        reorganization on October 27, 1995 in the wake of unsuccessful
        efforts by the company to reduce reserve requirements and increase
        cash available from its financing agreement with its lender.
        


            Cobra Industries, Inc., headquartered in Goshen, Indiana, is one
        of North America's largest recreational vehicle manufacturers.
        Cobra manufactures conventional trailers, park trailers, folding
        camper trailers and van conversions.  The company has manufacturing
        and distribution facilities in Indiana, California, Texas and
        Georgia.
        


        /CONTACT:  James J. Roop or Robert G. Berick of Watt, Roop & Co.,
        216-566-7019/




Trenton Industries Inc. - Court Approval
        Adjourned

        
            TORONTO, Ontario--Nov. 1, 1995--href="internat.canada.trenton.html">TRENTON
        INDUSTRIES
(TSE: TII) The court has adjourned the motions for
        approval of the Proposals under the Bankruptcy and Insolvency Act of
        Trenton Industries Inc. and its two subsidiaries, Trenton Machine
        Tool Inc. and SailRail Enterprises Limited.  The motions for court
        approval will now be heard on November 14, 1995.  The adjournment
        was sought by the Trenton Group in order to provide it with an
        additional period of time in which to finalize financing for its
        obligations under the Proposals and to support a return to normal
        business operations.  
        


        CONTACT:  Dean Antonakes,
                  Trenton Industries Inc.,
                  (613) 394-4861
        




        DIGICON FILES SHELF REGISTRATION

        
            HOUSTON, Nov. 1, 1995 -- Digicon
Inc.
(AMEX: DGC), an
        integrated geophysical services company operating in selected
        markets worldwide, today announced that it has filed a shelf
        registration statement with the S.E.C. covering the possible resale
        of 4,901,701 shares of its outstanding common stock.  The shares
        include 1,708,497 shares which were reacquired by the company in
        June 1995 in conjunction with the sale of its interests in the
        former Soviet Union and then resold to three institutional
        investors.  Also included were 3,193,204 shares issued in connection
        with the company's emergence from bankruptcy in 1991, which the
        company is contractually obligated to register. Holders of all the
        shares have advised the company they have no present intention to
        sell.  However, registration will enhance the liquidity of all the
        shares being registered, will permit them to be sold conveniently,
        and should ultimately improve the overall liquidity of the stock in
        the market.  The registration will not increase the number of
        currently outstanding shares which total 11,134,939.

            Digicon provides seismic data acquisition and processing
        services to the petroleum industry.  The company operates seismic
        survey ships, land data acquisition crews and geophysical data
        processing centers providing predominantly 3D services around the
        world.  Digicon is a Houston-based company whose common stock is
        listed on the American Stock Exchange under the symbol "DGC."

        
        /CONTACT:  Stephen J. Ludlow or Richard W. McNairy of Digicon Inc.,
        713-526-5611 or 800-DIGICON.




Hancock Fabrics in
acquisition talks with
        House of Fabrics

        
            TUPELO, Miss.--Nov. 1, 1995--Hancock Fabrics,
        Inc. (NYSE symbol: HKF) announced today that the Company is
        conducting preliminary discussions with href="chap11.hf.html">House of Fabrics, Inc., of
        Sherman Oaks, California, directed toward a negotiated transaction
        for its acquisition of House of Fabrics.  
        


            Any transaction would be consummated as part of a plan of
        reorganization in the chapter 11 cases of House of Fabrics and its
        affiliates pending before the United States Bankruptcy Court for the
        Central District of California.  Approval of the House of Fabrics
        creditors in bankruptcy, appropriate governmental authorities and
        the respective Boards of Directors would be required.  
        


            Hancock Fabrics, Inc. is a retail and wholesale merchant of
        fabric and related home sewing and decorating accessories.  The
        Company currently operates 505 retail fabric stores in 33 states
        under the names "Hancock Fabrics," "Minnesota Fabrics," "Fabric
        Warehouse," and "Fabric Market" and supplies almost 200 independent
        wholesale customers.  
        


        CONTACT:  Hancock Fabrics Inc., Tupelo,
                  Larry G. Kirk, 601/842-2834, Ext. 114
        




        HOUSE OF FABRICS TO RETAIN HOULIHAN, LOKEY; ACKNOWLEDGES PRELIMINARY
        DISCUSSIONS WITH HANCOCK FABRICS

        
            SHERMAN OAKS, Calif., Nov. 1, 1995 -- href="chap11.hf.html">House of Fabrics,
        Inc.
(NYSE: HF) reported today that it will ask the Court to
retain
        the investment banking services of Houlihan, Lokey, Howard & Zukin,
        Inc. to assist the company in evaluating its strategic alternatives.
        


            The company also reported that it is conducting preliminary
        discussions regarding a potential transaction with Hancock Fabrics,
        Inc. (NYSE: HKF).  The company has requested that Houlihan, Lokey
        assist it in exploring potential transactions, including one with
        Hancock Fabrics.
        


            House of Fabrics emphasized that the discussions with Hancock
        are at an early stage.  The company acknowledged that any
        transaction would be consummated as part of its plan of
        reorganization in the Chapter 11 proceeding.
        


            House of Fabrics operates 361 company-owned House of Fabrics,
        Sofro Fabrics, Fabricland, and Fabric King retail fabric and craft
        stores in 34 states and employs approximately 8,600 people.  The
        company and its subsidiaries filed to restructure under Chapter 11
        on November 2, 1994.
        


        /CONTACT:  Rivian Bell or Sandra Sternberg of Sitrick And Company,
        Inc., 310-788-2850/