SECAUCUS, N.J.--November 29, 1995--href="chap11.jamesway.html">Jamesway
Corporation has added to the traditional methods of liquidating
commercial real estate by advertising its holdings on the Internet
and World Wide Web. Jamesway is the first company to take advantage
of the powers of the Internet for conducting a real estate
liquidation. Within hours of posting its holdings on November 18,
the company began receiving e-mail requests for additional
information about its assets.
Ken Simon, Vice President for Real Estate at Jamesway, said, "We
have placed information about all 90 of our stores, our 800,000
square foot warehouse, and our 100,000 square foot corporate office
in all of the Internet's major commercial real estate forums,
mailing lists, and newsgroups. In addition, we have made the
information available on the World Wide Web via a home page."
Traditionally, a retail chain liquidates its real estate
holdings by placing advertisements in newspapers and trade
publications, sending mass mailings to and calling other retailers
who might purchase leases, and then auctioning off their remaining
leaseholds. These methods can raise millions of dollars for the
company's creditors.
Michael J. Sherman, Executive Vice President - Special Projects,
said, "From the beginning of this Chapter 11 process, Jamesway has
committed itself to maximizing the return for creditors and equity
holders. This innovative step of searching for buyers on the
Internet illustrates how we are exploring every opportunity to
extract the economic value of the company's assets."
Jamesway consulted with TKO/the Deal Makers to list its holdings
on TKO's electronic real estate services. TKO/the Deal Makers is
the largest information provider on the Internet concerning
commercial real estate. TKO/the Deal Makers can be reached at 609-
587-6200.
Jamesway's on-line postings can be reached at:
Home Page:
href="http://www.property.com" target=_new>http://www.property.com">http://www.property.com
Newsgroups:
misc.invest.real-estate ;
alt.realtor ;
alt.real-estate-agents ;
alt.buildings.realestate ;
alt.developers.realestate ;
RealtyNet.east ;
RealtyNet.south ; and
RealtyNet.Investment
Mailing Lists:
href="mailto:Commercial-realestate@property.com">Commercial-realestate@property.com ;
href="mailto:Investment-realestate@property.com">Investment-realestate@property.com ; and
href="mailto:Realestate-appraisers@property.com">Realestate-appraisers@property.com.
CONTACT: Kekst and Company,
Jason Lynch / Jim Fingeroth
(212) 593-2655
EL PASO, Texas--Nov. 29,
1995--El Paso Electric ("EPE" or
the "Company") reported net income
of $11.6 million ($.33 per share) for the quarter ended Sept. 30,
1995, compared to net income of $7.2 million ($.20 per share) for
the same period in 1994.The Company also reported a net loss for the
nine months ended Sept.30, 1995, of $14.5 million ($.41 per share),
compared to the net lossfor the same nine month period in 1994 or
$13.2 million ($.37 per share).
The net income reported
for the
third quarter in both years is primarily resulted from seasonal
sales and rate factors occurring in the summer months. The
principal reason for the net losses reported for both nine month
periods is that revenues continued to be insufficient to meet the
Company's costs of serving its customers andservicing its
indebtedness.
The Company has filed its Fourth Amended Plan of
Reorganization (the "Plan") and, on Nov. 8, 1995, the bankruptcy
court approved theCompany's related disclosure statement and
established the schedule for solicitation of votes on the Plan. The
solicitation period ends in early January 1996, and, assuming a
favorable vote on the Plan, the Company currently anticipates that
confirmation and effectivenessof the Plan could occur in early 1996.
Pursuant to the Plan, on Nov. 22, 1995, the Company filed a
registration statement on Form S-1 withthe Securities and Exchange
Commission with respect to up to $1,009,000,000 of its first
mortgage bonds and $100 million of its preferred stock. The
offering of such securities is contingent upon the effectiveness of
the Plan. The Company intends to use the net proceeds from this
offering to finance distributions to existing creditors under the
Plan.
The Plan provides for two alternative methods by
which the
Company may emerge from bankruptcy. Both alternatives would allow
for the Company to reduce its total indebtedness and simplify its
capital structure. The capital structure of the reorganized Company
would consist of approximately (i) $1.2 billion in debt, (ii) $100
million of preferred stock and (iii) common equity.
The
Company
filed a voluntary petition under Chapter 11 of the United States
Bankruptcy Code on Jan. 8, 1992. EPE is an electric utility serving
approximately 273,000 customers in El Paso, Texas, anarea of the Rio
Grande valley in west Texas and southern New Mexico and wholesale
customers located in such diverse locations as southernCalifornia
and Mexico.
El Paso Electric Company's results of
operations for
the three and nine months ended Sept. 30, 1995 and 1994 are as
follows (in thousands except share data):
Three Months Ended
------------------------- 9/30/95
9/30/94
----------- -----------Operating revenues
$ 148,177 $ 157,448Operating expenses
(117,002) (126,101)Interest charges
(18,438) (24,229)Income before reorganization items
12,258 9,493Reorganization items (expense), net of tax
(658) (2,343)Net income
11,600 7,150
Weighted average number of common shares outstanding
35,544,330 35,544,330
Net income per weighted average share of common stock
$ 0.33 $ 0.20
Nine Months Ended
------------------------- 9/30/95
9/30/94
----------- -----------Operating revenues
$ 385,249 $ 421,371Operating expenses
(324,273) (360,872)Interest charges
(69,538) (68,855)Loss before reorganization items
(9,321) (6,250)Reorganization items (expense), net of tax
(5,129) (6,961)Net loss
(14,450) (13,211)
Weighted average number of common shares outstanding
35,544,330 35,544,330
Net loss per weighted average share of common stock
$ (0.41) $ (0.37)
NEW YORK--Nov. 29, 1995--PennCorp Financial
Group Inc. announced today that Southwestern Financial Corp., a
newly formed company organized by PennCorp Financial Group Inc. and
Knightsbridge Capital Fund I L.P., is a successful bidder in a
bankruptcy-court supervised auction for the stock of Southwestern
Life Insurance Co. and Union Bankers Insurance Co., which are
subsidiaries of I.C.H. Corp.
I.C.H. commenced a proceeding for reorganization under Chapter
11 of the Bankruptcy Code in early October 1995. Southwestern
Financial Corp. agreed to purchase Southwestern Life and Union
Bankers for a total consideration of $260 million. For the 12
months ending Sept. 30 the companies to be acquired had combined
revenues of approximately $405 million and assets of approximately
$2.0 billion.
Southwestern Financial Corp. is a newly formed company organized
by PennCorp Financial Group Inc. (NYSE: PFG) and Knightsbridge
Capital Fund I L.P., a merchant banking fund formed in association
with PennCorp. The $260 million purchase price consists of $210
million in cash, $40 million in convertible notes of Southwestern
Financial Corp. and $10 million in PennCorp common stock. On a
fully diluted basis, immediately after giving effect to the closing
of the acquisition, Knightsbridge will own approximately 27% of the
economic interest in Southwestern Financial Corp. while PennCorp
will own 55% and the seller 18% (assuming conversion of the
convertible notes).
Steven W. Fickes, vice chairman of PennCorp said, "We are
delighted that our bid to acquire Southwestern Life and Union
Bankers was successful. These businesses are premier insurance
companies with widespread name recognition. They, unfortunately,
have suffered from being associated with an overleveraged holding
company. Under the joint sponsorship of Knightsbridge and PennCorp,
we believe that these companies will have increased opportunities to
grow without the distractions created by the problems at their
former parent."
Fickes continued, "This acquisition represented a tremendous
opportunity for PennCorp and is consistent with our marketing and
operational philosophy. Furthermore, we anticipate that PennCorp's
ownership interest in Southwestern Financial Corp. will immediately
be additive to PennCorp earnings."
PennCorp Financial Group Inc. is an insurance holding company.
Through its subsidiaries, the company underwrites and markets life
insurance and fixed benefit accident and sickness insurance to the
middle market throughout the United States, Canada, Puerto Rico and
the Caribbean.
CONTACT: PennCorp Financial Group Inc.,
Steven Fickes (Analysts), 301/656-1777 or
Carol Spencer (Media), 212/832-0700
KINGSTON, N.Y.--Nov. 29, 1995--The Federal
Energy Regulatory Commission ("FERC") today reaffirmed the
Qualifying Facility ("QF") status of the 55 Megawatt cogeneration
facility in the Town of Hume, New York, owned by href="chap11.kamine.html">Kamine/Besicorp
Allegany L.P. ("Allegany").
The FERC, in granting a limited waiver of the Commission's
operating and efficiency standards, reaffirmed that Allegany has
been and continues to be a QF under the federal Public Utilities
Regulatory Policies Act ("PURPA") laws. The plant's QF status has
been continually attacked by Rochester Gas & Electric Corporation
("RG&E"), as RG&E attempts to abrogate its 25-year Power Purchase
Agreement ("PPA") with Allegany.
The FERC found that Allegany's requested waiver was consistent
with PURPA's goal of encouraging cogeneration and alternative
generation technologies. Cogeneration is the simultaneous
production of two forms of energy from one fuel source and Allegany
is the only natural gas-fired plant in RG&E's service territory.
"We are gratified that FERC reaffirmed its commitment to clean,
high-efficiency cogeneration facilities such as Allegany," said
Michael F. Zinn, president of Besicorp Group Inc. (AMEX Emerging
Company marketplace - BGI.EC), a 50 percent owner of the Allegany
project.
"While we awaited this decision, RG&E continued its attempts to
destroy Allegany's business, including refusing to take power and
denying back-up power in violation of federal law. Also, RG&E has
been attempting to litigate Allegany to death by making
unsubstantiated contract claims requiring expensive legal
proceedings. Unfortunately, as a result of RG&E's pressure tactics,
Allegany was forced to file for Chapter 11 protection in Bankruptcy
Court for the District of New Jersey.
"Now we will proceed with litigating the remaining contract
disputes. We are confident RG&E will be forced to honor its
contractual obligations," Zinn said.
CONTACT: Besicorp Group Inc., Kingston,
Michael F. Zinn or Patrice Courtney, 914/336-7700
ASHLAND, Ky., Nov. 29, 1995 -- Ashland Inc.
(NYSE: ASH)
announced today that it has received payment of $74.6 million as a
result of the bankruptcy proceedings involving href="chap11.columbia.html">Columbia Gas
Transmission Corporation. Ashland will record a $47 million
after-
tax profit during the quarter related to this item.
The payment results from the settlement between Columbia Gas and
Ashland Exploration, a wholly-owned subsidiary of Ashland Inc., as
part of Columbia's previously approved plan of reorganization.
Ashland Inc. is a large energy and chemical company engaged in
petroleum refining and marketing; coal; highway construction; and
oil and gas exploration and production. Ashland Chemical is the
largest distributor of chemicals and plastics in North America and a
leading supplier of specialty chemicals worldwide. Ashland's major
consumer brands include Valvoline(R) motor oils, Zerex(R) antifreeze
and Pyroil(R) Performance Products automotive chemicals. As one of
the largest independent refiners in the nation, Ashland is also a
leading regional gasoline marketer, with products marketed under the
SuperAmerica(R) and Ashland(R) brand names.
/CONTACT: Stan Lampe of Ashland Inc., 606-329-4061/