DALLAS, Texas--Nov. 9, 1995--Eljer Industries,
Inc. (NYSE:ELJ) announced today that it is a participant in the
tentative settlement dealing with liabilities related to
polybutylene plumbing systems announced earlier today by Shell
Chemical and Hoechst Celanese. Certain of the plumbing systems were
manufactured and sold by Eljer's indirect, wholly-owned subsidiary
United States Brass Corporation.
The tentative agreement involving
Eljer was reached as part of a global settlement with counsel
representing the classes in the two certified national class actions
dealing with polybutylene claims and with representatives of Shell
Chemical and Hoechst Celanese. Shell and Celanese were suppliers of
the resins used in the manufacture of the polybutylene plumbing
systems. As part of the settlement, Shell and Celanese have agreed
to make up to $950 million available to repair such systems.
Eljer's participation in the settlement is conditioned on
finalization of an agreement between U.S. Brass, Eljer and the
other parties to the litigation and confirmation of a plan of
reorganization in the U.S. Brass bankruptcy. The contemplated
agreement would provide complete relief for U.S. Brass, Eljer
Manufacturing and Eljer Industries arising from polybutylene sales
to date. The plan of reorganization is supported by a majority of
the members of the Polybutylene Claimant s Committee in the U.S.
Brass bankruptcy. U.S. Brass had filed for voluntary Chapter 11
bankruptcy protection in May 1994 as a result of the polybutylene
plumbing systems claims.
Under the terms of the proposed agreement, Eljer will contribute
an amount equal to the proceeds it receives from certain insurance
coverage; a portion of the net proceeds, if any, resulting from the
litigation with its former parent, Household International, Inc.; $3
million in cash; a non-interest bearing note for $20 million payable
over 10 years; and 17.5 percent of the equity of Eljer Industries.
Under the terms of the proposed agreement, U.S. Brass will continue
to be an indirect, wholly-owned subsidiary of Eljer Industries.
Scott G. Arbuckle, President and Chief Executive Officer of
Eljer Industries, commented: "This proposed settlement is the
milestone we have long worked towards. The completion of the
agreement will finally remove an enormous burden from Eljer and its
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.
CONTACT: Brooks Sherman,
Chief Financial Officer
Lynn Morgen/June Filingeri,
Stan Froelich, Media contact
BIRMINGHAM, Ala.--Nov. 9, 1995--href="chap11.jones.html">Jones Plumbing
Systems Inc. (AMEX:JPS) announced today that it and its wholly
subsidiary, Jones Manufacturing Co. Inc., have filed voluntary
petitions for relief under the provisions of Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of New York.
The filings are intended to allow the companies to restructure
their financial obligations through a plan of reorganization.
Jones has recently implemented a plan to reverse recent declines
in sales and operating results, but a shortage of working capital
and debt repayment obligations have prevented Jones from fully
implementing the plan.
The board of directors determined that the Chapter 11 filings
were the alternatives that would allow Jones to continue in business
while pursuing additional financing and would be in the best
interests of its customers, creditors, employees and shareholders.
Jones, headquartered in Birmingham, Ala., is a publicly owned
company engaged in the manufacture and wholesale distribution of
plumbing and related products.
CONTACT: Jones Plumbing Inc., Birmingham,
Robert F. Amter, 205/956-5511
Subsidiary Hemdale Home Video joins in seeking to reorganize
under Chapter 11 of the U.S. Bankruptcy Code
BROWARD COUNTY, Fla.--Nov. 9, 1995--href="chap11.hemdale.html">Hemdale
Communications Inc. and its subsidiary Hemdale Home Video Inc.
separate voluntary petitions for reorganization under Chapter 11 of
the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Broward
Hemdale Communications and its subsidiary have requested that
these Chapter 11 proceedings be jointly administered for procedural
purposes by the Court, while new management operates these
businesses as debtors-in-possession, subject to the approval of the
Court for their proposed actions.
Hemdale Communications and its subsidiary recently came under
new management. Ray Bennett and Larry Glauber were appointed
chairman of the board and chief executive officer, respectively, on
Nov. 7, 1995.
In announcing the filing, Bennett stated, "Hemdale
Communications and its subsidiary's debts exceed the value of the
companies' assets. This step, while unfortunate, is necessary if
Hemdale is to recover from its financial problems and once again be
a prominent independent film distributor.
"We have reduced the companies' head count since coming in. We
plan on petitioning the court to allow us to provide post-petition
financing so that Hemdale can acquire new product and once again
become a functioning distributor."
On Oct. 3, 1995, Hemdale Communications filed a Form 8-K with
the Securities and Exchange Commission describing its liquidity
problems and discussing the possibility of a bankruptcy filing.
CONTACT: Rogers & Cowan Inc., Los Angeles,
Michael Russell, 310/201-8834
SHERMAN OAKS, Calif., Nov. 9, 1995--Hamburger
Restaurants Inc. (Nasdaq-NNM: HAMB), noting heavy trading in its
stock, today reported that its 1995 third quarter operating loss
widened to $.43 per share from $.16 per share in the year earlier
quarter. The company indicated that details concerning the third
quarter are contained in its Form 10Q for the quarter ended
September 24, 1995, which was timely filed with the SEC yesterday,
November 8, 1995.
The Company noted that the Form 10Q includes uncertainties
concerning the company's liquidity and capital resource position.
As reported in the Form 10Q, the company is currently in covenant
default with its bank lender. As a result the bank is not
permitting additional borrowings under the revolving credit facility
at this time.
In addition, the Form 10Q reflects management's determination
that real property leases with certain landlords must be terminated
or amended in order for the company to significantly improve
operating results. The company indicated that while it hopes to
obtain a waiver and resetting of covenants from the bank and
consensual settlements with the landlords, these goals may not be
achieved. In that event, the company reported that it may be forced
to file a chapter 11 petition for reorganization.
/CONTACT: Jack Lavine of Hamburger Hamlet Restaurants Inc.,