CINCINNATI, Dec. 6, 1995 -- href="chap11.epi.html">Eagle-Picher Industries (OTC:
EPIHQ.U) today announced that the Bankruptcy Court presiding over
the Company's chapter 11 reorganization case ruled that the
Company's estimated aggregate liability on account of present and
future asbestos-related personal injury claims is $2,502,511,000.
This ruling was in response to a motion filed by the Company in
July requesting that the Bankruptcy Court estimate such liability
for the purpose of determining the appropriate distributions to
creditor classes under a plan of reorganization. The Unsecured
Creditors' Committee and the Equity Security Holders' Committee
appointed in the Company's chapter 11 case had not agreed with the
amount of such liability previously negotiated for settlement
purposes among the Company, the Injury Claimants' Committee ("ICC")
and the Legal Representative for Future Claimants ("RFC").
Thomas E. Petry, Eagle-Picher Chairman, said that "the Company
is pleased that its estimated liability with respect to asbestos-
related personal injury claims, a critical element in formulating an
appropriate distribution scheme in a plan of reorganization, has
been determined. The Court's ruling will enable the Company to move
forward with its reorganization efforts.
"Because the Court estimated that the Company's aggregate
liability on account of asbestos-related personal injury claims is
larger than the $1.5 billion amount agreed to for settlement
purposes in the fourth quarter of 1993, the Company will record a
provision in the fourth quarter of 1995 of $1,002,511,000 to
increase the asbestos liability subject to compromise to
$2,502,511,000.
"The Company intends to proceed with an amended plan and
accompanying amended proposed disclosure statement as soon as
practicable. The Company anticipates that the only substantive
modifications to the plan filed on February 28, 1995 will relate to
the allocation of distributions under the plan to the various
categories of unsecured claims."
/CONTACT: J. Rodman Nall of Eagle-Picher, 513-721-7010/
(EPIHQ.U)
MEMPHIS, Dec. 6, 1995 -- Harrah's Entertainment,
Inc.
(NYSE: HET) today announced that, subject to agreements with the
city and state, Harrah's Jazz
Company intends to submit a motion to
the bankruptcy court that would allow the Harrah's Jazz Company
partnership to reopen its temporary casino in New Orleans.
The terms under which the temporary casino would open are
subject to approval of the bankruptcy court, including release by
the court of available funds as required. It is anticipated that if
the parties act promptly the casino could be reopened approximately
three weeks after all such approvals are granted. Approximately
1,000 employees will be required to operate and manage the temporary
casino, which would be reconfigured with less games and slot
machines.
The proposal contemplates that the reconfigured temporary casino
would operate on a positive operating cash flow basis prior to any
debt service requirements, but is not expected to contribute
significantly to the cost of construction of the permanent casino on
Canal Street.
"As one part of the total reorganization of the Harrah's Jazz
casino project in New Orleans, one important concern of all parties
is the reestablishment of the business and preserving as many jobs
as possible for local citizens while other contractual terms and
negotiations with creditors and other parties on matters relevant to
the project are worked through under bankruptcy protection," said
Colin Reed, executive vice president of Harrah's Entertainment, Inc.
"The smaller temporary casino we have proposed will have less
overhead and be scaled to the level of business that has been
experienced at the Basin Street location."
In addition to plans for the temporary casino reopening,
Harrah's Jazz also presented to the Louisiana Economic Development
and Gaming Commission a time-line to pursue reorganization of the
entire Harrah's Jazz project, focused on completion and opening of
the permanent facility on Canal Street. It is currently estimated
that the cost to complete construction of the permanent facility on
a somewhat scaled- back basis to meet currently anticipated market
demands, not including interest, would be approximately $195
million.
These proposals are preliminary at this time, and are subject to
negotiation and agreement by all interested parties to the
bankruptcy proceedings.
/CONTACT: Ralph Berry, Harrah's Entertainment, Inc.,
901-762-8629/
JACKSONVILLE, Fla.--Dec. 6, 1995--href="chap11.koger.html">The Koger
Partnership Ltd. (the "Partnership") announced through its
Managing
General Partner, Southeast Properties Holding Corp. Inc., that the
Bankruptcy Court in the Chapter 11 case of the Partnership entered
an Order dated Dec. 4, 1995, authorizing and directing the Managing
General Partner to take all necessary and advisable action to wind
up the Partnership's affairs and to terminate its existence as a
partnership.
The Bankruptcy Court further ordered that this termination and
the closing of the Chapter 11 case be accomplished prior to Dec. 31,
1995.
As previously reported, the Partnership has sold all of its
operating properties, the proceeds of which have been used to reduce
its debt. Since the Partnership will continue to owe approximately
$21 million to its Managing General Partner and $350,000 to its
former Individual General Partner, there will be no distribution to
the partners with respect to the outstanding Units of Limited or
General Partnership Interest.
CONTACT: Southeast Properties Holding Corp. Inc., Jacksonville
Mary McNeal, 904/398-3403
RYE, N.Y--Dec. 6, 1995--John C. Sites, Jr., who
resigned in July as executive vice president, director and member of
the executive committee of Bear, Stearns & Co., today announced the
formation, with two former Bear, Stearns associates, of Daystar
Special Situations Fund, L.P., a limited partnership to invest in
"special situation" securities.
Sites' partners in Daystar are Michael C. Murr, former chief
investment and capital officer of Progressive Corporation, and
Warren J. Malone, former Progressive Corp. senior portfolio manager.
Progressive Corporation is a New York Stock Exchange property-
casualty insurance company with $3.5 billion in assets.
Sites, a Bear Stearns veteran of 15 years, founded the firm's
mortgage securities department and was co-head of the Fixed Income
Group, including the distressed and high yield departments. Sites,
Murr and Malone worked together at Bear Stearns in the early 1980s.
Daystar Special Situations Fund will focus on investing in
undervalued or special situation companies, particularly entities
that are distressed or in bankruptcy. Among Daystar equity targets
are high value, out-of-favor investments, overly discounted by the
market. Daystar's value-based strategy is designed consistently to
outperform both the market and indexed portfolios.
Daystar's three principals have collectively invested $40
million in the firm and have agreed to keep this money invested for
a minimum of two years. The principals will reinvest in the fund,
all fees earned.
Daystar, headquartered in Rye, N.Y., will accept minimum
investments of $10 million.
John C. Sites, Jr.
Sites resigned as executive vice president, director and member
of the executive committee of Bear Stearns & Co. in July 1995. He
was with Bear Stearns since 1981 and founded the firm's mortgage
securities department, generally regarded as Wall Street's "top
mortgage department."
Prior to joining Bear Stearns, Sites served in trading
capacities at Trading Company of the West, First Pennco Securities
and Morgan Keegan & Co.
Sites is a 1974 Phi Beta Kappa graduate of Rhodes College.
Michael C. Murr
Murr served as co-founder and president of Progressive Partners,
Ltd. from 1988 to 1995. In 1992, he sold Progressive Partners to
Progressive Corp. and became chief investment and capital officer of
Progressive Corp.
Prior to founding Progressive Partners, he served as senior
managing director and head of the Financial Institutions Group and
Mortgage Finance department at Bear, Stearns & Co. He was a member
of the firm's management committee and commitment committee.
From 1977 to 1981, Murr was vice president at Salomon Brothers
in the Financial Institutions Group. From 1975 to 1977, he was an
associate at Kidder Peabody & Co.
Murr received the MBA from Harvard Business School in 1975 and
also received his undergraduate degree at Harvard University.
Warren J. Malone
Malone served as senior managing director of Progressive
Partners, Ltd. from 1989 to 1995. In 1992, Progressive Partners
became a wholly-owned subsidiary of Progressive Corp.
Prior to joining Progressive from 1985 to 1989, Malone served as
managing director in the Financial Institutions Group of Bear,
Stearns & Co., focusing on the insurance and savings & loan
industries. From 1981 to 1985, Malone was an associate in the
Corporate Department at Cravath, Swaine & Moore.
Malone received the JD and MBA degrees from Stanford University
in 1981. He received his BS degree from Boston College.
CONTACT: Fraser P. Seitel, 212/613-4073
SHERMAN OAKS, Calif., Dec. 6, 1995 -- href="chap11.hamburger.html">Hamburger Hamlet
Restaurants Inc. (the "Company") (Nasdaq: HAMB) and 41 of its
affiliates today filed voluntary petitions in the U.S. Bankruptcy
Court for the Central District of California to reorganize under
chapter 11 of the Bankruptcy Code. The company's management, which
previously disclosed its intention to file for chapter 11, said the
filing is a key step toward implementing a plan that is designed to
return the company to financial profitability.
Hamburger Hamlet's management said the Chapter 11 aims in part
to facilitate its efforts to terminate or negotiate amendments to
its real property leases and equipment financing agreements with
certain landlords and equipment secured creditors, an instrumental
part of the company's turnaround strategy. The Company cautioned
that implementation of a plan of reorganization is subject to a
number of conditions and uncertainties, including negotiations with
and approval by various creditors the bank and the Bankruptcy Court.
The Company estimates that it has trade debts of nearly $5
million, approximately $10.7 million in bank loans and amounts not
yet ascertained, which may be due to landlords and equipment secured
creditors as a result of the anticipated rejection of their leases
and contracts. In support of its turnaround plan, the company said
its bank this week funded certain of the Company's pre-petition
working capital needs. The bank has also agreed to the use of its
cash collateral by the Company in the Chapter 11 case, subject to
certain terms and conditions.
Hamburger Hamlet is headquartered in Sherman Oaks, California.
The company operates 19 restaurants in three markets and opened its
first restaurant in West Hollywood in 1950.
/CONTACT: Jack Lavine of Hamburger Hamlet, 818-995-7333/