MOORESTOWN, N.J.--Dec. 7, 1995--Holly Products
Inc. (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP, HOPP) majority
stockholder of Country World
Casinos, today announced that it
obtained a loan commitment of $5 million for Country World to pay
its debts. The closing of the loan is subject to formal
documentation and approval of the Bankruptcy Court having
jurisdiction over Country World's Chapter 11 case.
As previously disclosed on Oct. 12, 1995, Country World filed a
bankruptcy petition under Chapter 11 of Title 11 of the United
States Code on that date, in order to avoid the public sale of its
major assets and protect the interest of its shareholders. As part
of its re-organization plant, Country World intends to use this
capital to satisfy the first and second deed of trust for the casino
site, 100 percent of the unsecured debt to its creditors, and
provide working capital while the company continues in its attempts
to secure construction and permanent financing.
As previously stated, Country World will continue to pursue its
Civil Action against Tommy Knocker Casino and its Parent, New Allied
Development Corp. for approximately $600,000 in overcharges and
certain disclosure issues.
William H. Patrowicz, president of Holly Products Inc., stated,
"We are encouraged, with the raising of these funds, that Country
World will be able to put the bankruptcy issue behind them and we
remain optimistic that we will secure the balance of the necessary
funding to construct the casino in short order."
Holly Products Inc., headquartered in Moorestown, has a wholly
owned subsidiary, Navtech Industries Inc., of Blanding, Utah and a
majority owned subsidiary, Country World Casinos Inc. of Denver.
Navtech is a manufacturer and tester of printed circuit boards and
wire harnesses for slot machine tracking systems and signage.
Country World Casinos Inc. is a development corporation, whose sole
asset is a parcel of property located in Blackhawk, Colo. Country
World's plan is to construct the largest casino in the state of
Colorado located in Black Hawk, as well as a hotel complex.
CONTACT: Holly Products Inc., Moorestown,
William Patrowicz, 609/234-1450
DALLAS, Dec. 7, 1995 -- Search
Capital Group, Inc.
(SRCG.OB), today reported it has completed a $3 million interim
financing transaction with Dallas-based Hall Financial Group, Inc.
The announcement was made by George C. Evans, Search chairman and
chief executive officer.
In addition to the interim financing transaction, Evans noted
that Hall Financial has proposed to make an equity investment in
Search of up to $4.5 million.
"Closing this interim financing with Hall represents another
significant step towards turning Search around," said Evans. "We
believe the Hall financing is also a tremendous vote of confidence
in Search's management and our strategic business plan to achieve
profitability."
Craig Hall, chairman of Hall Financial Group, said, "We made a
loan and proposed to take an equity position because we feel that
Search has a quality management team and a bright future. We
consider this to be a unique and favorable investment opportunity."
Evans pointed out that the interim financing from Hall provides
Search with the necessary funds to continue its rebuilding process
while finalizing its subsidiaries' Chapter 11 proceedings. It is
anticipated that process would be completed within a week.
Search Capital Group, Inc. is a specialized financial services
company engaging in the purchase, management and securitization of
used motor vehicle receivables. Search shares (SRCG.OB) are
currently being traded on the OTC Bulletin Board.
/CONTACT: Andy Stern of Stern, Nathan & Perryman, 214-373-1601/
SECAUCUS, N.J.--Dec. 7, 1995--Petrie Stores
Corporation (NYSE: PST) announced today that its board of directors
has approved the transfer of all of Petrie Stores' remaining assets
and its remaining fixed and contingent liabilities to the Petrie
Stores Liquidating Trust. The succession will be effective as of
the close of business on January 22, 1996, at which time Petrie
Stores shareholders of record on such date will become holders of
beneficial interests in the Petrie Stores Liquidating Trust.
As previously announced, Petrie Stores shareholders approved a
plan of liquidation and dissolution on January 24, 1995 and, since
that date, Petrie Stores has distributed 31,408,753 shares of Toys
"R" Us, Inc. (NYSE: TOY) common stock to its shareholders pursuant
to the plan. Petrie Stores currently holds 7,055,576 shares of Toys
"R" Us common stock and approximately $85 million in cash and cash
equivalents.
Petrie Stores expects that the liquidating trust will distribute
its assets to holders of beneficial interests as quickly as is
reasonably practicable, but notes that the timing and size of
distributions will depend upon the extent to which Petrie Stores
reduces its contingent liabilities.
Petrie Stores' remaining contingent liabilities primarily relate
to (i) guarantees by Petrie Stores of certain retail store leases to
which Petrie Retail, Inc. or its subsidiaries are parties and which
expire at various times through the year 2011, (ii) an ongoing
dispute with the Internal Revenue Service relating to the manner in
which Petrie Stores computed the basis of shares of Toys "R" Us
common stock transferred pursuant to the conversion of certain
exchangeable subordinated debentures in fiscal year 1989, and (iii)
Petrie Stores' agreement to indemnify Petrie Retail for certain
multiemployer plan withdrawal liabilities.
As has been reported, on October 12, 1995, href="chap11.petrie.html">Petrie Retail filed a
voluntary petition for bankruptcy protection under Chapter 11 of the
Federal Bankruptcy Code. Since filing its petition, Petrie Retail
has announced plans to close approximately 300 out of its roughly
1600 stores. Petrie Stores is a guarantor of leases relating to
approximately 50 of those stores, and its aggregate guarantee
liability on those leases is expected to be no more than
approximately $15 million. Petrie Stores' liability will be reduced
by, among other things, the extent to which Petrie Retail assigns
closed store leases instead of rejecting such leases in bankruptcy
or, if the leases are rejected, new rent-paying tenants are found
for the closed stores. Subject to bankruptcy court approval, Petrie
Retail has retained Keen Realty Services, Inc. to market
approximately 150 of the roughly 300 leases relating to stores to be
closed. In conjunction with this process, with the consent of
Petrie Retail, but subject to bankruptcy court approval, Petrie
Stores intends to retain Keen Realty to negotiate transactions to
reduce liability under any of those leases where Petrie Stores has
guarantee liability.
Petrie Stores is not aware of any plans that Petrie Retail may
have to close additional stores; however, no assurance can be given
that Petrie Retail will not close additional stores for which Petrie
Stores has guarantee liability. Based on motions currently pending
before the bankruptcy court, Petrie Retail will likely have until at
least August, 1996 to decide whether to assume or reject the
majority of the leases it currently holds. Were Petrie Retail to
close EVERY store for which a landlord might claim that Petrie
Stores is a lease guarantor AND no mitigation or defense were
successful, Petrie Stores believes that its maximum theoretical
exposure relating to such leases, without giving effect to any
present value discount, would be approximately $95 million.
In addition, since the filing by Petrie Retail of its voluntary
petition for bankruptcy protection, a dispute has arisen between
Petrie Stores, on the one hand, and Petrie Retail and its
affiliates, on the other, as to whether Petrie Stores, or Petrie
Retail and its affiliates, is responsible as guarantor of certain
additional leases. The maximum theoretical exposure relating to
such leases, based on the same assumptions as set forth in the
preceding paragraph -- and without giving effect to any present
value discount -- would be approximately $35 million. To date,
Petrie Retail has not announced plans to close any of the stores
relating to such leases, and as a result, there is currently no
guarantor liability.
A substantial number of leases referred to above under which a
landlord might claim that Petrie Stores is a lease guarantor either
expressly contained mitigation provisions or relate to property in
states that imply such provisions as a matter of law. Mitigation
generally requires, among other things, that a landlord of a closed
store seek to reduce its damages, including by attempting to locate
a new tenant.
As to the ongoing dispute with the IRS, Petrie Stores is
contesting the IRS' proposed adjustment in administrative
proceedings.
As previously disclosed, effective January 31, 1995, Petrie
Retail withdrew from the multiemployer pension plan in which it had
participated. Due to underfunding of the multiemployer plan, Petrie
Retail has incurred withdrawal liability under the Employee
Retirement Income Security Act of 1974, as amended. Pursuant to the
agreement by which Petrie Stores sold its retail operations, Petrie
Retail and its affiliates are responsible for the first $10 million
in withdrawal and related liabilities, with the next $50 million of
such liabilities allocated 75 percent to Petrie Stores and 25
percent to Petrie Retail and its affiliates. It is unclear what
effect, if any, Petrie Retail's bankruptcy filing may have upon the
timing and amounts of any payments Petrie Stores may be required to
make under the agreement with respect to the multiemployer plan, but
in no event will Petrie Stores' maximum contractual liability be
increased as a result of Petrie Retail's bankruptcy filing.
Petrie Stores expects to mail an information statement to its
shareholders, which will further detail items relating to the Petrie
Stores Liquidation Trust, its anticipated assets, fixed and
contingent liabilities and tax treatment on or about December 18,
1995. SHAREHOLDERS ARE ENCOURAGED TO CAREFULLY READ THIS
INFORMATION STATEMENT IN ITS ENTIRETY.
CONTACT: John Quirk
(212) 484-7699
or
John Franklin III
(212) 484-7693
SAN JOSE, Calif.--Dec. 7, 1995--Diamond
Multimedia (Nasdaq: DIMD) today announced that it has increased its
offer to acquire Hayes Microcomputer
Products, Inc. out of Chapter
11 bankruptcy reorganization.
The Official Committee of the Unsecured Creditors of Hayes (the
"Committee") today filed with the U.S. Bankruptcy Court in Atlanta,
Georgia an amendment to the reorganization plan of the committee and
Diamond increasing their offer.
The Committee and Diamond filed a plan of reorganization on
October 3, 1995 in which Diamond proposed to acquire Hayes by paying
creditors approximately $85 million in cash, representing a full pay-
out of pre-petition claims, plus interest. The new offer continues
to provide cash to creditors, however, equity holders will now
receive $92 million in stock and $8 million in cash rather than the
$73 million in stock and cash under Diamond's original offer
Concurrent with the filing of the plan amendment today, Melita
Easters Hayes, a 9.4 percent shareholder in Hayes, ex-wife of
founder Dennis C. Hayes and the second largest shareholder in Hayes,
filed her official ballot with the U.S. Bankruptcy Court voting in
favor of the Committee/Diamond plan and opposing the reorganization
plans filed by the debtor Hayes and U.S. Robotics. Confirmation
hearings are scheduled to commence December 18, 1995.
"We are very pleased to receive the support and vote of Melita
Easters Hayes, and we believe we are well positioned to close this
acquisition quickly as we have received Hart-Scott-Rodino anti-trust
clearance from the FTC and have our financing in place. However, we
are competing with the reorganization plans of the debtor, Hayes,
and a plan proposed by U.S. Robotics and there can be no assurance
that our plan will be confirmed by the U.S. Bankruptcy Court," said
William J. Schroeder, President and CEO of Diamond Multimedia.
Diamond Multimedia
Diamond Multimedia designs and markets high-performance
multimedia solutions for the PC and Macintosh markets. Products
include Stealth graphics and multimedia accelerators, EDGE 3D
animation accelerators and Supra fax/modems. Diamond also markets
sound cards, audio/telephony subsystems, Internet kits and
multimedia upgrade kits. Headquartered in San Jose, CA, Diamond has
marketing and technical support facilities in Vancouver (WA), Tokyo,
Munich, Paris and Slough (U.K.). Diamond's products are sold
through regional, national and international distributors as well as
to major computer retailers, mass merchants and OEMs worldwide.
Diamond's common stock is traded on the Nasdaq National Market under
the symbol DIMD.
How to Contact Diamond Multimedia
There are many ways to reach Diamond for sales support,
technical assistance, driver updates and general information:
The Main Phone Number: 408/325-7000; Fax: 408/325-7070 Supra
Communications Division Main Phone Number: 360/604-1400;
Fax: 360/604-1401 SPEA Division Main Phone Number: +49-8151-2660
Product Support: 408/325-7100; Supra: 360/604-1499 For information
on Diamond products: 800/380-0030; Supra: 800/727-8772 24-Hour Fax
On Demand Service: 800/380-0030; Supra 503/967-0072 America Online
(Keyword: DIAMOND; Supra Keyword: SUPRACORP2) CompuServe (GO
DMNDONLINE or GO GRAPHBVEN)(75300,3673); Supra: (GO SUPRA); SPEA (GO
SPEA) Microsoft Network: Find DIAMOND FTP site: ftp.diamondmm.com,
or Supra: ftp.supra.com Internet Web site: http://www.diamondmm.com
or Supra: http://www.supra.comBBS numbers at 408/325-7080 (to
14.4 baud)
or 408/325-7175 (to 28.8 baud) Supra BBS: 503/967-2444 SPEA BBS at
+49-8151-266241 (to 14.4 baud) or +49-8151-12921
(to 28.8 baud) or +49-8151-78001 (ISDN)
CONTACT: Diamond Multimedia,
Gary Filler, 408/325-7333;
Kim Stowe, 408/325-7204
or
FRB San Francisco,
Ann Trunko or Kevin Mirise, 415/986-1591