Reorganization To Be Accomplished Through Chapter 11
SHERMAN OAKS, Calif., Nov. 24, 1995 -- href="chap11.hamburger.html">Hamburger Hamlet
Restaurants Inc. (Nasdaq: HAMB) today announced key steps in
implementing a plan that aims to return the company to financial
profitability. The plan calls for the closing today of 12
restaurants, leaving the company with 19 restaurants still
operating. In support of this plan, the company also announced that
it had reached a tentative agreement with its bank to fund certain
of its near-term working capital needs. The company indicated that
it expects to implement its plan of reorganization through the
filing of a voluntary Chapter 11 petition in the U.S. Bankruptcy
Court for the Central District of California.
"We seek to bounce back with a core group of successful
restaurants," said A. Shawn Holder, President and Chief Executive
Officer. "Our turnaround plan began taking shape more than a year
ago. We hired and trained talented managers, renovated restaurants,
improved menus and food quality and service, and significantly
reduced general and administrative expenses. Despite having
improved our operations we still had to make the difficult decisions
to close our unprofitable restaurants, we now believe the company is
positioned for a return to long-term success. We are now operating
19 successful restaurants including our flagship locations in Los
Angeles and the Washington D.C. area."
To assist with the turnaround plan, Hamburger Hamlet has
retained reorganization specialists: Price Waterhouse LLP as
financial advisors and Stutman, Treister & Glatt Professional
Corporation as attorneys.
The company said it expects to file within the next week or two
a petition under Chapter 11 of the Bankruptcy Code to reorganize.
Such a petition should facilitate efforts to terminate or amend real
property leases with certain landlords and equipment lessors, an
instrumental part of the company's turnaround strategy. Hamburger
Hamlet cautioned that implementation of its plan of reorganization
is subject to a number of conditions and uncertainties, including
approval of the plan by various creditors and the Bankruptcy Court.
Hamburger Hamlet Restaurants Inc. is headquartered in Sherman
Oaks, California. It opened its first restaurant, in West
Hollywood, in 1950. Today it operates 19 restaurants in three
markets. Its common stock is traded on Nasdaq under the symbol
/CONTACT: Jack Lavine or Shawn Holder, of Hamburger Hamlet,
TAMPA, Fla., Nov. 24, 1995 -- href="chap11.reclaim.html">ReClaim of New Jersey, Inc.,
subsidiary of ReClaim, Inc. (Nasdaq: ROOF), announced today that it
has filed for protection under Chapter 11. ReClaim has awaited
final installation guidelines for its primary recycled product Econo-
O-Pav(TM) since the July 1995 favorable letter was issued to ReClaim
by the New Jersey Department of Environmental Protection (NJDEP);
the final guidelines have not been received. Instead of issuing the
guidelines, the NJDEP has chosen to issue a Notice of Violation.
Customers are irresolute to use Econo-O-Pav(TM) without these
guidelines. Additionally, at the same time the NJDEP gave the
Company the favorable letter on Econo-O-Pav(TM) they promised to
move forward on the testing and approval of our ReActs HMA(TM)
product, according to the Company. ReClaim is still patiently
awaiting their action.
ReClaim has not received the infusion of capital that was
previously committed to the Company by First Financial Corp., LTD.
This loan had been arranged by DMN Capital. ReClaim is currently
reviewing DMN's actions in this and all matters involving ReClaim
and DMN Capital.
/CONTACT: James W. Hagen, ReClaim, 813-935-8533/