COLUMBUS, Ohio--Nov. 13, 1995--Tropic
Communications, Inc. (Boston Exchange: TRO) (the "Company") a
broadcasting and equipment leasing company, announced that its
common stock will resume trading on the Boston Stock Exchange today
under the trading symbol TRO.
Trading in the Company's common stock was suspended by the
Boston Stock Exchange on October 14, 1995 pending completion and
filing of the Company's financial statements with the Securities &
Exchange Commission. The financial statements for the year ending
April 30, 1995 and the first fiscal quarter ending July 31, 1995
were filed with the SEC on November 7, 1995. The Company's common
stock no longer trades on the Nasdaq SmallCap Market, having been
delisted on October 2, 1995, however, the Company has requested that
the Nasdaq Review Committee reverse this decision and restore the
Company's SmallCap listing. A decision on this request is expected
to be forthcoming in January, 1996, which, according to Nasdaq, is
the next earliest meeting date of the Nasdaq Review Committee.
The Company reported a loss from operations of $1,767,616 and
$223,748 for the fiscal year ending April 30, 1995 and the first
fiscal quarter ending July 31, 1995 compared to $2,639,593 and
$363,852 for the previous fiscal year and previous first fiscal
quarter.
During the second fiscal quarter ending October 31, 1995 the
material contingencies related to the Company's acquisition
transaction with Tradewinds Airlines, Inc. were completed, including
the funding of over $2,500,000 in Tradewinds Acquisition Corp. and
approval of the Florida West Airlines,
Inc. Plan of Reorganization
by the Bankruptcy Court on October 18, 1995 which included approval
of the acquisition. Closing has been scheduled to be completed
during the week of November 26, 1995.
CONTACT: Tropic Communications Inc., Columbus,
John E. Rayl, 614/538-0660
SPECTRUM INFORMATION TECHNOLOGIES ANNOUNCES FRAMEWORK TO SETTLE
CLASS ACTION LAWSUIT
PURCHASE, N.Y., Nov. 13, 1995 -- href="chap11.spectrum.html">Spectrum Information
Technologies, Inc. (Nasdaq: SPCL) today announced that an
agreement
in principle has been reached on a framework for settlement of the
federal securities class action lawsuit that has been pending
against Spectrum and certain of its present and former employees
since May 1993. The class plaintiffs in that lawsuit filed a claim
against Spectrum in its bankruptcy proceedings in the amount of $676
million. The settlement, if consummated, would be in satisfaction
of that claim as well as all claims between Spectrum and the other
defendants in the suit.
The settlement is contingent on numerous factors, including
among other things successfully resolving a litigation regarding
insurance coverage, negotiation and execution of a definitive
settlement agreement, Spectrum's ability to develop and confirm a
plan of reorganization in Spectrum's pending bankruptcy proceeding
satisfactory to all interested parties including plaintiffs in the
class action, and approval of the settlement by the Bankruptcy Court
and by the United States District Court in which the class action
suit is pending.
Under the terms of the agreement in principle, Spectrum and the
class plaintiffs have agreed to a framework under which it is
contemplated that Spectrum will issue to the class plaintiffs in its
plan of reorganization a number of shares of its common stock that
would be equal to the number of shares of its stock to be issued to
existing shareholders in the reorganization. This understanding is
subject to contingencies which could alter the framework of the
settlement, including without limitation the percentage of
Spectrum's stock to be issued to the class. In a related agreement,
the class plaintiffs are also to receive the proceeds, net of
certain fees and expenses, from $10 million of insurance policies
covering Spectrum's directors and officers and, as a result of court
supervised negotiations and at the recommendation of the Court,
$1,350,000 from the various individual defendants in the action and
$250,000 from Spectrum. The individual defendants are to place
their contributions to the settlement in escrow by November 15,
1995.
Donald J. Amoruso, Spectrum's CEO since January 1995, stated
that he was pleased to be able to reach this agreement in principle
on framework to settle the class action since the heavy costs of the
litigation had been a significant factor in Spectrum's filing for
chapter 11 bankruptcy protection in January. He also stated that he
was pleased that the indicated settlement, if consummated, would
enable the Company to resolve the class action suit without unduly
depleting its cash position and permit existing stockholders to
maintain a stock interest in a reorganized Spectrum, but that there
were a number of uncertainties that had to be resolved.
Among the uncertainties is that insurers that issued policies
for $6 million of the insurance necessary to fund the settlement
have disclaimed coverage. This dispute is the subject of a
litigation pending in the U.S. District Court for the Eastern
District of Long Island, which must be successfully resolved in
order for the settlement to be implemented. Spectrum's plan of
reorganization must also address other material litigation, claims
by the Company's creditors and Spectrum's need for additional
capital. There can be no assurance that Spectrum will be successful
in its efforts to resolve those matters or that the other conditions
to the settlement will be achieved. Spectrum's exclusive right to
file a plan of reorganization expires on January 26, 1996.
Based in Purchase, New York, Spectrum Information Technologies
develops and licenses direct connect technology related to the
wireless transmission of data. In January, the Company filed a
voluntary chapter 11 petition in the U.S. Bankruptcy Court for the
Eastern District of New York and is in the process of reorganizing
its business.
/CONTACT: Media Only: Michael Freitag of Kekst and Company,
212-593-2655; or for Investors: Spectrum Information Technologies,
Inc., Investor Relations, 914-251-1800, ext. 182/
DVL, INC. ANNOUNCES THIRD QUARTER LOSS
BOGOTA, N.J., Nov. 13, 1995 -- DVL,
Inc. (OTC: DVLN)
("DVLN") announced today a loss of $1,387,000 or ($.15) per share on
operating revenues of $732,000 for the third quarter ended September
30, 1995. This compares to a loss of $3,688,000 or ($.44) per share
on operating revenues of $736,000 in the third quarter of 1994.
DVLN's loss primarily resulted from continued losses from operations
(including accrual of approximately $250,000 for interest on a loan
which is in default, for which settlement negotiations are
continuing) and from an increase in the provision for losses
considering DVLN's anticipated liquidation of certain loans to meet
its operating cash flow deficiency and its mandatory repayment
obligations on certain indebtedness.
DVLN is currently seeking to refinance a portion of its mortgage
portfolio to meet certain mandatory debt repayment requirements and
is working with an interested party in connection with the
refinancing of certain assets pursuant to which the lender would
replace certain existing lenders and in consideration of such loans
would receive equity and rights to acquire equity in DVLN.
DVLN is a real estate investment, management and finance company
located in Bogota, New Jersey.
DVL, INC.
THIRD QUARTER RESULTS OF OPERATIONS
(in thousands except share data)
Three Months Nine Months
Ended September 30 Ended September 30
1995 1994 1995 1994
Operating revenues $ 732 $ 736 $ 2,455 $ 2,929
Loss before
extraordinary item $(1,387) $(3,688) $(3,499) $(6,573)
Extraordinary gain on the
settlements of
indebtedness -- -- 1,809 1,935
Net loss $(1,387) $(3,688) $(1,690) $(4,638)
Earnings per share data:
Loss before
extraordinary item $ (.15) $ (.44) $ (.39) $ (.79)
Extraordinary gain on the
settlements of
indebtedness -- -- .20 .23
Net loss $ (.15) $ (.44) $ (.19) $ (.56)
Average shares
outstanding 9,210,661 8,472,450 8,907,825 8,292,970
/CONTACT: Joel Zbar of DVL, Inc., 201-487-1300/
Rexon and Legacy Storage Systems make announcement
MONTREAL--Nov. 13, 1995--Rexon
Inc. and
Legacy Storage Systems International Inc. today announced that The
United States Bankruptcy Court for the District of Colorado has made
an order approving the proposal of Legacy Storage Systems
International Inc. and management of Rexon Inc. to each provide
debtor in possession financing to Rexon of US$2 million for an
aggregate of US$4 million. Legacy management and Rexon's management
announced earlier their proposal to provide this financing to Rexon
subject to the Court's approval.
As a result of the order, Legacy and Rexon's management each
advanced approximately US$930,000 to Rexon on November 10, 1995 and
anticipate making an additional advance of approximately US$1
million by November 16, 1995. This financing will primarily be used
by Rexon to purchase inventory and to resume operations.
Legacy has proposed an acquisition of certain assets of Rexon
for a purchase price to be satisfied by assumption of the secured
indebtedness of Rexon and the court approved debtor in possession
financing of US$4 million and a cash payment to Rexon. There is no
assurance that an agreement will be reached between Rexon and Legacy
as to the purchase of these assets or that the Court will approve
any agreement that the parties may reach.
Rexon Inc. manufactures and distributes 1/4 inches cartridge
(QIC) tape drives under the Wangtek brand name, digital audio tape
(DAT) drives under the WangDat brand name and Tecmar tape back-up
solutions. Rexon Inc. distributes its tape back-up products
through a field sales force and international network of more than
100 distributors. Rexon Inc. also has OEM and VAR relationships
with a number of major U.S. computer companies. Rexon operates its
own manufacturing facility out of Singapore.
Legacy Storage Systems International Inc. is a personal
computer peripheral systems corporation operating in the data
storage subsystems sector of the computer systems industry. Legacy
manufactures, assembles and distributes data storage subsystems for
the personal computer local area network environment, provides
technical support services to any users of its products, conducts
research and development to upgrade its existing products, develops
new products and distributes computer products and components.
Legacy manufactures products for all major operating systems.
Legacy's products are marketed worldwide to Fortune 500 companies.
CONTACT: David Killins,
President & C.E.O.,
Legacy Storage Systems International Inc.
905/475-1077
or
Alain Lambert,
Director of Investor Relations,
Legacy Storage Systems International Inc.
514/844-7212
or
Bob Genesi,
Chief Executive Officer,
Rexon Inc.
303/682-3753
Visual Cybernetics announces that today
it has filed a voluntary petition for reorganization under Chapter
11 of the Bankruptcy Code.
NEW YORK--Nov. 13, 1995--Visual
Cybernetics
Corporation (OTC:VSCY) announces that today it has filed a
voluntary
petition for reorganization under Chapter 11 of the Bankruptcy Code.
The Company has retained the legal services of bankruptcy
specialist Angel & Frankel, P.C. of New York City. The Company's
Board of Directors believes that a reorganization in bankruptcy will
provide the most expedient forum for resolving the Company's
financial and past managerial problems. The Company's new
management, which was elected to office in July pursuant to a
special shareholders meeting, has stabilized the Company and will
oversee its operations throughout the bankruptcy proceeding. The
Company intends to emerge from bankruptcy in February, 1996. As
part of its reorganization plan the Company will eliminate its
medical software division and renew its focus on personal computer
software.
CONTACT: Daniel W. Dowe, Esq.,
Dowe & Dowe, New York
212/293-7299
Kamine/Besicorp Allegany L.P. files for
chapter 11
KINGSTON, N.Y.--Nov. 13, 1995--href="chap11.kamine.html">Kamine/Besicorp
Allegany L.P. ("Allegany") today filed in United States
Bankruptcy
Court for the District of New Jersey under Chapter 11 of the United
States Bankruptcy Code. On Nov. 2 the U.S. District Court for the
Western District of New York denied the partnership's motion for a
preliminary injunction compelling Rochester Gas & Electric ("RG&E")
to accept power from Allegany at contract prices based on an
antitrust complaint.
In a previous decision RG&E was ordered to purchase power from
Allegany at $.06 per kilowatt hour ("kwh") pending a hearing on its
request for a preliminary injunction. RG&E refuses to abide by its
obligation and has unilaterally decided to pay approximately $.02
per kwh, which is its SC5 tariff rate.
Michael F. Zinn, president of Besicorp Group Inc. (AMEX Emerging
Company Marketplace: BGLEC), a 50 percent owner of the Allegany
project, said the project could not survive at the SC5 tariff rate,
which is effectively the rate utilities charge for excess power
dumped on the market on a short-term interruptible basis.
"We noted last week that the project was in grave danger due to
the Federal Court's adverse ruling. It is our hope that the Chapter
11 process will allow us to reorganize the partnership in order to
save this project. We remain confident that Allegany will prevail
in the ultimate resolution of these claims, and that we will
convince the proper court that the Allegany power contract is a
binding and enforceable obligation of RG&E," Zinn said.
"RG&E is seeking to prevent Allegany from ever getting a chance
to litigate these issues. RG&E knows full well that if they succeed
in avoiding their contract, they will kill the project. It is our
continued belief that the provisions of the Power Purchase Agreement
("PPA") prevent RG&E from exercising the very self-serving predatory
behavior they are attempting to use to kill Allegany," Zinn said.
In a related development, as a result of continuing defaults
under the financing agreement, precipitated by RG&E's breaches,
project lender General Electric Capital Corp. ("GECC") has exercised
its rights to install new corporate officers and new boards of
directors for each of the corporations that are general partners in
the Allegany Partnership. The long term effect on Besicorp and
Kamine's ownership interests in the project will depend on whether
the Court requires RG&E to fulfill its contractual obligations. The
interests of Allegany and all parties that have relied on the PPA
are identical in that RG&E's refusal to honor its contractual and
legal obligations is the sole cause of the existing problem.
CONTACT: William Escobar, 212/808-7771
or
Michael F. Zinn, 914/336-7700
MERRY-GO-ROUND ENTERPRISES ANNOUNCES INCREASED WORKING CAPITAL
AVAILABILITY
JOPPA, Md., Nov. 13, 1995 -- Merry-Go-Round Enterprises,
Inc. (NYSE: MGR) announced today that it has reached an agreement
with its DIP lenders and certain unsecured creditors of the Company
(the "Term Lender"), for increased availability of up to $22.5
million through the holiday ordering season under its current DIP
facility.
Of the increased availability, $7.5 million is to be advanced
immediately in full, up to $7.5 million is available immediately
(subject to the advance terms and conditions of the agreement and to
a satisfactory store closing plan), and $7.5 million is available in
the discretion of the Term Lender, upon request by the Company.
"Management believes that this increased availability under the
DIP facility supports its new merchandising strategy and its
decision to concentrate on operating only its best performing
stores," said a spokesman for the Company. "The increased
availability under the DIP facility will help facilitate a steady
stream of fresh inventory receipts as the Company moves into the
important holiday season."
The spokesman noted that the current adverse retail conditions
have had an impact on sales for many specialty retailers, including
MGRE. This general weakness and uncertainty within the specialty
retail market has caused certain factors and vendors to take a
conservative approach to their extension of credit. MGRE sought the
additional DIP credit availability to help ensure timely merchandise
receipts prior to the commencement of the holiday season.
The amendment to the loan agreement also provides a limited
waiver of compliance with a certain covenant for the third quarter,
modifies or waives certain covenants to enable the proposed store
closings, and sets certain cash and borrowing base requirements for
the latter half of January 1996. The agreement is subject to
approval by the Bankruptcy Court, final documentation and payment of
fees.
Merry-Go-Round Enterprises, Inc. is specialty apparel chain
selling contemporary fashions for young men and women.
/CONTACT: Michael W. Kempner of MWW/Strategic Communications, Inc.,
201-507-9500, or Isaac Kaufman of Merry-Go-Round Enterprises, Inc.,
410-538-1000/
BRISTOL-MYERS SQUIBB COMPANY APPROVES REVISED BREAST IMPLANT
SETTLEMENT
Offers Claimants Certainty, Resolution and Realistic Funding;
Resolves Problems of Original Agreement
NEW YORK, Nov. 13, 1995 -- Women who registered
with the
national breast implant class action settlement and have implants
made by four manufacturers or their predecessors and subsidiaries
can have "certainty" and "closure" from a revised settlement
program, according to Bristol-Myers Squibb Company (NYSE: BMY). The
company's Board of Directors has approved the settlement, subject
only to final details.
The revised settlement, overseen by Federal District Judge Sam
C. Pointer, Jr., enables qualified claimants to receive timely and
certain payment from participants. In addition to Bristol-Myers
Squibb, the settling companies include three other implant
manufacturers - Baxter Healthcare Corporation, 3M Company and McGhan
Medical Corporation - and Union Carbide Corporation, which made gels
for some implants.
"This settlement provides needed certainty, resolution and
closure to claimants," said John L. McGoldrick, senior vice
president and general counsel of Bristol-Myers Squibb. "Current
claimants will receive equitable compensation in a timely manner.
They can make informed choices under a claims processing system that
Judge Pointer describes as 'user-friendly.' Future claimants have
benefits similar to insurance. Those claimants with the most serious
illnesses will receive the highest awards. All claimants can bypass
the hassles, expense, delays and uncertainties of the tort system.
No one has to prove that the implants caused illness. And no one is
precluded from pursuing any other legal options regarding non-
participating parties.
"Perhaps most important for claimants," McGoldrick commented,
"the revised settlement empowers women to put this behind them and
move on with their lives. It is an option that we think they will
and should consider very seriously compared to the courtroom."
The settlement provides for timely payments of $10,000 to
$50,000 - with up to $50,000 in additional compensation if implants
rupture - to registrants who currently have claims against the
settling companies that meet the original agreement's medical
criteria. Current claimants can receive up to $250,000 for
conditions such as lupus, if they provide additional supporting
medical documentation verifying the severity of their condition.
These awards are fully guaranteed for individuals whose pending
claims are approved or contain minor deficiencies.
The settlement also offers benefits similar to an "insurance
policy" for registrants who may have future claims, funded at
reasonable, realistic levels, according to the companies.
An October 27 message on Judge Pointer's toll-free hotline
compared the original and revised settlements. The award amounts in
the revised settlement, the message states, "although substantially
less than amounts shown in the initial notices for 1/8the original
agreement 3/8, are greater for many claimants than the amounts that,
after ratcheting, would have been offered under that program, and .
. . are not subject to a walk-away by defendants because of . . .
opt outs."
Starting in December, a notice of the settlement will be mailed
to current claimants. They will be offered an advance, non-
refundable payment of $5,000, as soon as they provide evidence that
they have or had an implant made by Bristol-Myers Squibb, Baxter
Healthcare Corporation or 3M Company and agree to participate. The
$5,000 would be credited against future amounts payable. Qualified
claimants also have the right to receive $3,000 for an explant, if
one occurred after April 1, 1994 or if they choose to have one over
the next 15 years.
A notice will also be mailed in December to women who registered
under the original settlement but have not filed claims. If they
agree to participate in the settlement, they will be entitled to the
explant benefit and the right to file a claim any time over the next
15 years. They will also be entitled to an advance, non-refundable
payment of $1,000 upon providing evidence that they have or had an
implant made by Bristol-Myers Squibb, Baxter Healthcare Corporation
or 3M Company and agree to participate. The $1,000 would be
credited against future amounts payable.
Registrants not filing current claims will be eligible for the
higher award levels available to current claimants if they meet the
same new medical criteria that apply to these award schedules.
While awards to future claimants are subject to annual aggregate
limits, the companies have the right to exceed the caps to pay the
full amounts to future claimants, and claimants have the right to
opt out of the settlement if their awards are reduced.
The companies admit no liability in the settlement. It occurs
in the wake of the American College of Rheumatology's finding that
"silicone implants expose patients to no demonstrable additional
risk for connective tissue or rheumatic diseases," and studies by
the Mayo Clinic, Harvard and other independent organizations which
show no association between implants and connective tissue
disorders. McGoldrick commented that, "While there are good reasons
for us to vigorously defend ourselves in the courts, we want
claimants to have an important option to resolve their cases. We
know that most claimants are sincere in their beliefs and this
settlement gives them a choice that we hope they will find fair and
worthwhile.
"Full funding of the settlement for qualified current claimants
is assured," he said, "so we believe it is of greater practical
value to them than the original agreement. We encourage claimants,
their attorneys and breast implant support groups to review this
settlement carefully, comparing it with the realities of both the
original agreement and the tort system."
Unlike the terms of the original settlement, the revised terms
do not cover claimants whose implants were made by href="chap11.dow.html">Dow Corning
Corporation, which is now in bankruptcy proceedings. The revised
settlement does not apply to non-U.S. residents. In addition, the
five companies that are parties to the revised settlement are bound
by its terms regardless of the number of claimants who participate.
While the revised settlement, if approved by Judge Pointer, may be
subject to appeal, most of the benefits for current claimants will
be payable prior to the determination of appeals and regardless of
their outcome.
It is expected that the court will shortly provide a new message
to reflect this settlement on its toll-free number, 1-800-887-6828.
/CONTACT: Jane Kramer of Bristol-Myers Squibb Co., 609-252-5185, or
home, 609-448-2233/