CLARKSBURG, W.Va., Dec. 11, 1995 -- Alamco, Inc.
AXO) announced today that it has received the anticipated proceeds
from settlement of its contract rejection claims from href="chap11.columbia.html">Columbia Gas
Transmission Corporation ("Columbia"). This initial distribution
was the result of the confirmation by the U.S. Bankruptcy Court of
Columbia's Plan of Reorganization on November 15, 1995. The Company
received proceeds of $7,576,250, of which its share is $5,483,397.
Alamco will recognize a gain in the fourth quarter of 1995 of
$4,169,000 ($0.90 per share) before tax and $2,543,000 ($0.55 per
share) after tax.
Alamco could receive an additional settlement distribution from
Columbia of up to five percent of its original claim of $11,000,000.
The Company would recognize a gain of $274,000 ($0.06 per share)
before tax and $167,000 ($0.04 per share) after tax upon receipt of
the additional distribution. The timing and amount of this
additional recovery is contingent upon Columbia settling various
outstanding claims with other gas producers.
John L. Schwager, President and Chief Executive Officer, stated
that the Company would use the proceeds to retire debt.
Alamco, headquartered in Clarksburg, West Virginia, is an
independent producer of gas and oil in the Appalachian Basin with
operations concentrated in West Virginia, Tennessee and Kentucky.
The Company's stock is traded on the American Stock Exchange under
the symbol AXO.
/CONTACT: Jane Merandi of Alamco, Inc., 1-800-873-2526/
WAYNE, N.J.--December 11, 1995--The
Company announced today that it has decided to accept a proposal
from C&S Wholesale Grocers, Inc., to supply food and other goods to
its 103 supermarkets in the New York-New Jersey-Connecticut
The decision means that the company will close its current
distribution centers in Mt. Kisco, N.Y. and Carlstadt, N.J.
Joseph J. McCaig, president and chief executive officer, said
the decision to accept the C&S proposal, which is estimated to save
Grand Union in excess of $14 million per year for the next seven
years over the Company's present way of supplying product to its New
York Region stores, was made after careful study and numerous
meetings with the union representatives of its 450 distribution
McCaig said "Unfortunately, during our two months of voluntary
discussions with the Teamsters Union and its affiliated locals, they
failed to even submit a proposal aimed at saving the jobs involved.
Therefore, when weighing our options, we could not ignore the
tremendous benefits and efficiencies presented by the C&S proposal
as we work to maximize the future growth of our company for our
customers, our 16,000 associates and our shareholders."
McCaig said the changeover to C&S would commence in the very
near future and should be completed by the end of February 1996.
"C&S already supplies our 127 Northern Region stores and has done so
for the last six months," he said. "Based upon our excellent
experience with C&S thus far, we are confident that this arrangement
will provide an orderly flow of goods to our stores, while at the
same time achieving significant cost savings."
Grand Union said it recognizes the importance of doing all it
can to help the members of the three unions and other employees
impacted by this decision. "We fully intend to discuss with each
Local Union the effects of the closings," he said, "including
severance pay and other termination issues. In addition, we are
arranging with the New York and New Jersey State Labor Departments
to make their services available on-site to all affected employees."
Grand Union currently operates 230 stores in six Northeastern
states. Grand Union emerged from bankruptcy on June 15, 1995.
Shares of its common stock are traded on NASDAQ National Market
under the ticker symbol GUCO.
CONTACT: Grand Union,
Donald C. Vaillancourt, 201/890-6100
CHICAGO, Ill.--Dec. 11, 1995--The
Group, Inc. today announced that it has sold the Jack Henry
Clothing Co., an institution in Kansas City, to a local investor
group for $1.478 million in cash. The transaction, which includes a
long-term lease for the 38,000 sq. ft. store at 4740 Broadway,
inventory and the rights to the Jack Henry name, was approved on
December 6 by the U.S. Bankruptcy Court for the District of Delaware
The store was purchased by Peter Arvan & Sons, owners of Peter's
Clothiers in Overland Park, Kansas. They intend to continue
operating the store under the Jack Henry name and do not anticipate
making any major changes in personnel.
"We are very pleased to have reached this agreement to sell Jack
Henry to a local family intent on operating the store as a going
concern," said Jeffrey Coats, Vice Chairman of The Hastings Group.
"The store has consistently been one of our best performers, and we
are pleased that its loyal customers will continue to be served.
Clearly, this transaction is also in the best interests of our
creditors and the employees at that location."
Peter Arvan, the store's new owner, said, "Since its founding
more than 60 years ago, Jack Henry has been an institution in Kansas
City. We are very proud to literally give the store a new lease on
life. We intend to carry on Jack Henry's tradition of excellent
customer service and look forward to restoring its enterpreneurial
Jack Henry was founded in 1931 by Jack D. Henry Sr. near its
current location at the Plaza in Kansas City. The store was part of
a national 60-store group purchased by the Hastings Group in 1994.
As reported, due to the sustained downturn in the men's tailored
clothing business, the Hastings Group filed a voluntary petition for
protection under chapter 11 of the Federal Bankruptcy Code on
October 23, 1995. The Chicago-based company has indicated that it
plans to close or sell all of its stores by early 1996.
CONTACT: Michael Freitag,
Kekst and Company
MARKHAM, ONTARIO--Dec. 11, 1995--Legacy Storage
Systems International Inc. has entered into a definitive agreement
with Rexon Incorporated (NASDAQ -
"REXNQ") which has been approved
by the unsecured creditors's committee for Rexon/Tecmar, Inc. (a
subsidiary of Rexon). The purchase agreement contemplates a plan of
reorganization under which Legacy acquires the business of Rexon and
its subsidiaries, including to the extent possible the purchase of
all shares of a reorganized Rexon. The transaction is subject to
approval of The United States Bankruptcy Court for the District of
In the event that Rexon's plan of reorganization is not
confirmed by the Bankruptcy Court by March 1, 1996, the purchase
agreement contemplates that Rexon will seek approval of the
Bankruptcy Court to sell substantially all of the assets of Rexon
and its subsidiaries to Legacy pursuant to section 363 of Title 11
of the U.S. Bankruptcy Code. In addition to approval of the
Bankruptcy Court, closing of the transaction si subject to a number
of conditions including completion of due diligence satisfactory to
Legacy and approval of all applicable stock exchanges. It is
anticipated that the transaction will be completed by Legacy on or
about March 1, 1996.
As previously announced, the purchase price is to be satisfied
through the assumption of debt, the payment of cash and the issuance
of common shares of Legacy having a trading value at closing of U.S.
$5 million. These shares will be subject to certain escrow
Rexon has entered into a no-shop commitment whereby it
undertakes not to solicit alternate purchasers or investors for the
business of Rexon. In addition, Rexon has agreed to a "top-up"
requirement under which it has agreed not to accept any offers for
the purchase of Rexon unless the purchase price exceeds that payable
by Legacy by at least U.S. $2 million. In the event that a
purchaser other than Legacy acquires the business of Rexon, Legacy
is entitled to a break-up fee of U.S. $1 million. The no-shop, top-
up and break-up fee provisions will become effective on approval by
the Bankruptcy Court. If these provisions are approved by the
Bankruptcy Court, Legacy will issue an additional 2.5 million common
shares of Legacy. Legacy also announced that it has satisfied all
conditions for listing on The Toronto Stock Exchange, and that its
common shares commenced trading on the TSE on December 8, 1995 under
the symbol "LEG".
The Company also announced that it completed its previously
announced special warrant financing for gross proceeds of $31.68
million. This financing has been underwritten by Yorkton Securities
Inc., Griffiths McBurney & Partners and Loewen, Ondaatje, McCutcheon
Limited. A total of $7 million of these proceeds are immediately
available to the company, while the balance is to be held in escrow
for release in connection with the closing of the Rexon purchase
David Killins, President and CEO of Legacy, stated: "We believe
that this transaction is an excellent opportunity for both parties
and will spawn a strong new data storage organization with
tremendous global growth potential."
Rexon Inc. manufactures and distributes 1/4" cartridge (QIC)
tape drives under the Wangtek brand name, digital audio tape (DAT)
drives under the WangDat brand name and Tecmar tape back-up
solutions. Rexon Inc. distributes its tape back-up products though
a field sales force and international network of more that 100
distributors. Rexon Inc. also has OEM and VAR relationships with a
number of major U.S. computer companies. Rexon operates its own
manufacturing facility out of Singapore.
Legacy Storage Systems International Inc. is a personal computer
peripheral systems corporation operating in the data storage
subsystems sector of the computer systems industry. Legacy
manufactures, assembles and distributes data storage subsystems for
the personal computer local area network environment, provides
technical support services to any users of its products, conducts
research and development to upgrade its existing products and
develops new products for all major operating systems. Legacy's
products are marketed worldwide to Fortune 500 companies.
The Alberta Stock Exchange has not reviewed and does not accept
responsibility for the accuracy of this news release.
CONTACT: David Killins, President & C.E.O., 905/475-1077 or
Alain Lambert, 514/844-7212
ATLANTA, Dec. 11, 1995 -- Anacomp, Inc. (NYSE:
announced that it has reached an agreement in principle on a
financial restructuring of the company with the committee of holders
representing all of Anacomp's publicly-held unsecured debt: the
company's 15% Senior Subordinated Notes, the company's 9%
Convertible Subordinated Debentures, and the company's 13.875%
Convertible Subordinated Debentures. Anacomp intends to file a
registration statement by Dec. 15, 1995 with the Securities and
Exchange Commission (the "SEC") and, upon SEC approval of the
registration statement, to begin to solicit votes for approval of a
prepackaged plan of reorganization under Chapter 11 of the United
States Bankruptcy Code that would accomplish the restructuring.
Pursuant to the terms of this proposal, (i) the company's senior
secured debt would be exchanged into new Senior Secured Notes (the
"New Senior Secured Notes") with a four-year maturity and periodic
sinking fund payments, which notes would be collateralized by first
liens on substantially all of the assets of the company; (ii) the
company's 15% Senior Subordinated Notes would be exchanged into $195
million principal amount of new 13% Senior Subordinated Notes with a
six-year maturity, plus 92.5% of the company's new common stock;
(iii) the company's 13.875% Convertible Subordinated Debentures and
9% Convertible Subordinated Debentures would be exchanged into 7.5%
of the company's new common stock, plus warrants to purchase 2.5% of
the company's new common stock; and (iv) the company's existing
redeemable preferred stock and common stock would receive warrants
to purchase an aggregate of 1.0% of the company's new common stock.
The coupon on the New Senior Secured Notes would be 12.5% (assuming
acceptance by the senior secured debt of the prepackaged plan) or
12.0% (if the plan is rejected by such class). The full details of
the proposal will be contained in the registration statement to be
filed by the end of the week.
Under the proposal, Anacomp's trade creditors and vendors would
be paid in full in the ordinary course of business, without any
impairment by the prepackaged plan of reorganization. The company's
commitments to its customers would remain unaffected.
Anacomp will be soliciting approval for the proposal from its
senior secured lenders, public bondholders, and holders of its
preferred and common stock. Certain representatives of the
company's senior secured lenders have indicated that they would
reject the proposal. Anacomp believes that the prepackaged plan can
be confirmed without the approval of its senior secured lenders.
There can be no assurance that the restructuring will be consummated
on the terms set forth in the proposal or otherwise.
"Anacomp is pleased to reach this agreement in principle and
hopes to obtain an agreement among all of its creditors during the
solicitation of its restructuring," noted Lang Lowrey, the company's
president and recently appointed chief executive officer. "If the
company is successful in consummating its restructuring plan, the
company will have the appropriate capital structure for its ongoing
operations as well as sufficient resources to grow its business,
including the acquisition of certain new digital technologies."
Anacomp is a leading provider of multiple-media data management
solutions, delivering cost-effective strategies that incorporate
micrographic, digital, and magnetic output media.
/CONTACT: Jeff Withem, Corporate Communications, 404-876-3361, or
Nancy Vandeventer, Investor Relations, 800-350-3044, both of