MEMPHIS, Dec. 1, 1995 -- Harrah's Entertainment,
(NYSE: HET) announced it is aware of two lawsuits that have been
filed against it pertaining to the announcement last week that
Harrah's Jazz Company had filed a
voluntary bankruptcy petition
under Chapter 11. A subsidiary of Harrah's Entertainment, Inc. is
one of three partners in Harrah's Jazz Company. The lawsuits were
brought on behalf of certain purchasers of 14, first Mortgage Notes
due 2001 of Harrah's Jazz Company and allege, among other things,
violations of the federal securities laws. The complaints, which
seek certification as class actions and unspecified damages, were
filed in U.S. District Court for the Eastern District of Louisiana.
The complaints also name as defendants certain directors and
officers of Harrah's Entertainment, and, in the case of one of the
complaints, a subsidiary of Harrah's Entertainment which is a
general partner of Harrah's Jazz Company, as well as certain
unrelated parties. Harrah's Entertainment believes such allegations
are without merit and intends to vigorously defend against such
/CONTACT: Ralph Berry, Harrah's Entertainment, Inc., 901-762-8629/
OLDWICK, N.J., Dec. 1, 1995 -- A.M. Best
that the Best's Ratings of several of the insurance company
subsidiaries of I.C.H. Corporation
(I.C.H.), will remain under
review with developing implications in light of the announcement on
November 29, 1995 of an agreement by an affiliate of PennCorp
Financial Group to acquire these companies. The buyer will be a
newly formed entity, Southwestern Financial Corp., sponsored by
PennCorp and Knightsbridge Capital Fund I.L.P.
The ICH subsidiaries that are the subject of this acquisition
are Southwestern Life Insurance Company, Dallas, Constitution Life
Insurance Company, Louisville, Ky., and Union Bankers Insurance
Company, Dallas, all of which have Best's Ratings of "B+" (Very
Good) under review with developing implications, and Marquette
National Life Insurance Company, Louisville, Ky., whose "NA-4"
(Rating Procedure Inapplicable) is not changed as a result of the
The agreement to acquire these companies was concluded pursuant
to a bankruptcy court auction in which Southwestern Financial made
the winning bid of $260 million, of which $210 million is to be in
cash, $40 million in convertible notes, and $10 million in PennCorp
The status of these ratings reflects the proposed acquisition,
which, if accomplished as planned, will provide these companies with
better capitalized and more stable ownership than they presently
have. It is the opinion of A.M. Best that these life insurance
companies are well capitalized, have ample liquidity, maintain
strong asset and liability portfolios, and have viable marketing
franchises in their fields of operation. A.M. Best has closely
monitored these companies over the last several months and noted
that week-to-week overall surrenders remained manageable, and new
business growth remained reasonable, despite the well publicized
problems of the parent organization.
As it has throughout the recent history of difficulties at
I.C.H., A.M. Best will maintain frequent and regular contact with
all significant participants in its ongoing review of the companies'
situations. As open issues are resolved, definitive conclusions
with respect to ratings under review will be announced to the
/CONTACT: Tom Upton of A.M. Best Company, 908-439-2200 x5380/
PHILADELPHIA, Dec. 1, 1995 -- href="chap11.stansbury.html">Stansbury Holdings
Corporation, a development-stage mining company ("STBY"),
today its results for the quarter ended September 30, 1995. The
Company continued to have no business operations and no revenue.
However, there were the following additional developments:
First, the Company said that it is continuing to perform
preliminary procedures in connection with an audit of its financial
statements for the year ended June 30, 1995. As previously
announced, Arthur Andersen & Co., LLP, has been engaged to perform
an audit once the preliminary work is complete.
Second, the Company announced that it has filed suit in federal
court in Salt Lake City, Utah, and has obtained a preliminary
injunction freezing all shares in the hands of former management.
The injunction was entered against Robert V. Murton, Stansbury's
former president, Charles McLaughlin, also a former president, Dr.
Sami Samani, Peter Samani and Thomas DeRosa, former treasurer, for
violations of Sections 13(d) and 10(b) of the Securities Exchange
Act of 1934. The Company's suit also attacks a stock issuance in
December 1994, by former management to themselves whereby they
obtained approximately two (2) million shares.
The injunction freezes, until time of trial, all of defendants'
shares and bars the defendants from selling, pledging, transferring
or voting any of their shares of Stansbury.
Third, the Company announced that, as part of its audit
procedures, it has determined that over $3,100,000.00 in old
judgments disclosed in its partial Form 10-K as still on court
dockets in Utah have been discharged in bankruptcy and, therefore,
are no longer a liability of the Company. There remain
approximately $200,000.00 in unsatisfied judgments against the
/CONTACT: Donald Sanford, President of Stansbury Holdings,
818-763-0460, or James G. Wiles, Counsel for the Company, 215-854-
ATLANTA, Dec. 1, 1995 -- Hayes
Inc. announced today completion of a comprehensive financing
which exceeds the $85 million New Capital Funding requirement to
complete its Plan of Reorganization, permitting the company to pay
creditors in full plus interest as promised. Highlighting the
effectiveness of the company's continuing turnaround, Hayes also
released today its unaudited FY 95 financial results in which it
recorded an operating profit of $6.5 million before one time
restructuring charges on $265.9 million in net sales.
As part of its comprehensive financing package, Hayes announced
the execution of final agreements with Northern Telecom Inc.
(Nortel) and ACMA Limited for a $35 million equity investment in
Hayes. In addition, Hayes reported the execution of a Commitment
Letter with The CIT Group/Credit Finance for a secured line of
credit of up to $65 million with immediate availability of at least
$38 million upon closing. Further, Hayes announced the execution of
a contract to sell approximately 230 acres of land in Gwinnett
County, Ga. for a total net gain to Hayes of $12.8 million. In the
aggregate, the comprehensive financing package provides total funds
to the company in excess of the $85 million required to complete the
Hayes Plan of Reorganization.
"I am enormously pleased and gratified that we have achieved our
financing goals which will fully fund our Plan of Reorganization,"
said Dennis C. Hayes, Chairman and CEO of Hayes. "We are proceeding
to our confirmation hearing on Dec. 18 with all of our ducks in a
row and with full faith in the system and Judge Hugh Robinson."
Upon the closing of the investment in Hayes, Nortel and ACMA
will together require a 49% minority stake in Hayes in exchange for
a combined investment of $35 million. Dennis Hayes and the Hayes
Profit-Sharing, Saving and Stock Plan will own 51% of the company,
allowing it to remain independent. Mr. Hayes will continue as
Chairman and CEO of the company and the search for a new
President/Chief Operating Officer, begun earlier in the year, will
continue. A Board of Directors consisting of six people will be
established with two Directors appointed by Nortel, ACMA, and Dennis
Hayes each. A closely held company since 1977, Hayes expects to
initiate efforts to conduct an initial public offering of stock
within two years. As part of the agreements, Hayes and Nortel will
establish a strategic business relationship in which Nortel
developed technologies and products or Hayes and Nortel co-developed
technologies and products can be sold through Hayes global
distribution channels under the Hayes brands.
"When leaders such as Nortel and ACMA make a substantial
minority investment in an independent Hayes, it underscores their
confidence in the competitive capability of our team," said Dennis
Hayes. "These investors support Hayes' unwavering commitment to
customers to provide cutting edge superior products and services at
The Commitment Letter from the CIT Group/Credit Finance provides
for a $65 million secured line of credit of which $38 million will
be available under agreed to lending formulas. Said Dennis Hayes,
"This three year facility with CIT provides Hayes the financial
flexibility to fully participate in the rapidly growing
The execution of a contract between Hayes and a confidential
buyer for approximately 230 acres of unimproved real estate in
Gwinnett County, Ga., which is surplus to the company's operations,
will net Hayes approximately $12.1 million. The Georgia Department
of Transportation is acquiring 8.2 acres for road improvements which
will net the company an additional $700,000 for a total net gain to
the company of $12.8 million.
FY 95 Financial Results
Hayes also announced its unaudited FY 95 financial results,
reporting a $6.5 million operating profit before one time
restructuring charges of $5.8 million on $265.9 million in revenue
for the year. Compared to FY 94 results in which the company
recorded an operating loss of $30.3 million on $246.3 million in
revenue, the FY 95 results indicate a $36.8 million operating
turnaround by the company in just one year.
As a result of a series of operational changes, operating
expenses for the year were $62.8 million, a $26.7 million reduction
from 1994 operating expenses. Expenses related to Hayes Chapter 11
proceedings and reorganization (including fees for attorneys,
accountants, and various consultants) were $10.2 million which
combined with the $5.8 million in one time restructuring charges led
to a $9.2 million net loss for the year.
"Our FY 95 results prove that Hayes is back on track and that
our turnaround is working," said Dennis Hayes. "Not only have the
employees of Hayes worldwide made the turnaround work, we continue
to deliver innovative products that consistently win top awards from
independent reviewers and support from our customers. The
commitment and loyalty our customers have shown to Hayes products
and brands over the past year has been a critical factor in the
success of our business."
Hayes turnaround has been further aided by the support of its
many suppliers. The numerous component shortages from earlier in
the year have been eliminated through close cooperation between the
company and its supplier partners. Hayes efforts to reestablish
trade credit with suppliers is generating response in excess of the
Hayes filed for voluntary Chapter 11 protection under the U.S.
Bankruptcy Code on Nov. 15, 1994. The Hayes Plan of Reorganization,
which will pay all valid creditors' claims at 100% plus interest,
was filed on May 15, 1995 and the Hayes Disclosure Statement was
approved by the Bankruptcy Court on July 10, 1995. The Confirmation
Hearing for the Hayes Plan is currently scheduled for Dec. 18, 1995
Best known as the inventor of the PC modem, Hayes is recognized
around the globe as a leader in technical innovations, computer
communications standards, functional and feature-rich products, and
superior support and service. Founded in 1977, Hayes develops,
manufactures, and markets value-based computer communications
solutions for software, business, network, and consumer market
segments. The company maintains an extensive global network of
authorized distributors, dealers, mass merchants, VARs, system
integrators and original equipment manufacturers. Hayes customers
include Fortune 1000 corporations, mid-size companies and corporate
branch offices, small and home office businesses, on-line and
telecommunications network providers, and millions of individual PC
users around the globe.
/CONTACT: Andrew W. Dod, Director of Corporate Communications,
Hayes Microcomputer Products, Inc., 770-840-9200, ext. 6365;
Fax: 770-441-1238; or E-Mail: adodhayes.com/
All Merchandise Goes On Sale in 70 Stores
DALLAS, Dec. 1, 1995 -- Margo's, the 70-store
ladies' specialty apparel shops located in malls in six states,
began its store closing sales today. Open for six decades, Margo's
is renowned for the value, quality and style of its merchandise.
Discounts will be given on all categories of merchandise. All
stores are fully stocked with merchandise for the Christmas holiday
season. The store closing sales will continue until all merchandise
has been sold.
Margo's, a subsidiary of href="chap11.elder.html">Elder-Beerman Stores Corp., of Dayton,
Ohio, filed for Chapter 11 bankruptcy protection in Federal Court on
October 17, 1995. Gordon Brothers Partners, of Boston,
Massachusetts, has been appointed by the United States Bankruptcy
Court for the Southern District of Ohio, Western Division, to
oversee the sale.
"It's always a disappointment when a long-term player in a
market such as Margo's has to close its doors," said Robert Sager,
president of Gordon Brothers Partners. In explaining why the stores
are closing, Sager commented, "It was a combination of many factors,
including the rapidly changing retail environment. It is a shame
that these factors overshadowed Margo's legacy of providing value
and great merchandise, and has so impacted its loyal hardworking
"The good news is that unlike other store closing sales, Margo's
is fully stocked with current merchandise ordered specifically for
the Christmas season and the closing sales will be a great
opportunity for long-time customers to obtain big bargains," pointed
out Sager. "And, the earlier they come to the sale, the better
selection they'll have." Merchandise includes ladies' ready-to-wear,
accessories and shoes. While the product mix may vary slightly from
store to store, the total retail value of goods to be sold is over
$24 million. Margo's are located in malls in Texas, Arkansas,
Oklahoma, New Mexico, Louisiana and Tennessee.
The stores that are closing are located in the
following cities and states:
Arkansas: Fayetteville, Little Rock, and Pine Bluff.
Louisiana: Alexandria Mall, Kenner, and Monroe.
New Mexico: Albuquerque and Santa Fe.
Oklahoma: Norman, Oklahoma City, and Tulsa.
Texas: Amarillo, Arlington, Austin, Baytown, Beaumont, College
Station, Corpus Christi, Dallas, Denton, Ft. Worth, Houston, Humble,
Hurst, Irving, Killeen, Lake Jackson, Laredo, Lewisville, Longview,
Lubbock, Lufkin, Mesquite, Midland, Nacogooches, Odessa, Plano, San
Antonio, Sherman, Texarkana, Texas City, Tyler, Victoria, Waco and