BALA CYNWYD, Penn.--Jan. 10, 1996--Holly
Products Inc. (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP, HOPP), today
announced that it completed a $3.5 million private sale of
convertible preferred stock which will be used to reduce debt and
finance the working capital requirements of its subsidiaries.
The company also completed moving its principal executive
offices from the facilities of its recently closed Holly Wood
Manufacturing Inc. subsidiary in Moorestown, N.J. to Bala Cynwyd, a
suburb of Philadelphia. William Patrowicz, Holly's president
commented, "this financing places the company in a better position
to develop the operations of its Navtech Inc. and href="chap11.country.html">Country World
Casinos Inc. subsidiaries. The closing of the Holly Wood
operation
permits management to focus on the expansion of Navtech's
specialized electronics manufacturing business and the development
and consummation of a plan to permit Country World to emerge from
its Chapter 11 proceeding and begin the development of a casino in
Blackhawk, Colorado In all, the company is on a much firmer
financial foundation and better positioned to capitalize on these
opportunities."
Holly Products Inc., headquartered in Bala Cynwyd, 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 electronic components for
casino equipment, hotel equipment and sinage. Country World Casinos
Inc. is a development corporation, whose plan is to construct a
casino in Black Hawk, as well as a hotel complex.
CONTACT: Holly Products Inc.,
William Patrowicz, 609/222-9327
NEW YORK--Jan. 10, 1996--Ladenburg, Thalmann
Group Inc. announced today that its merchant banking subsidiary,
Ladenburg, Thalmann Capital Corp., has signed a definitive agreement
to provide a $10.6 million convertible bridge loan to finance
Thinking Machines Corp., a
developer and marketer of parallel
software for high-end and networked computing systems.
In November 1995, Thinking Machines filed a reorganization plan
to emerge from Chapter 11 bankruptcy protection.
Pursuant to the agreement, Ladenburg, Thalmann will provide
funding to TMCA Corp., an entity formed to invest in Thinking
Machines upon its emergence from bankruptcy. The investment
provided by Ladenburg, Thalmann will help fund Thinking Machines'
advanced product development and marketing. The transaction has the
unqualified support of the official Creditor's Committee and the
official Shareholder's Committee of Thinking Machines and is
expected to close in February 1996.
Founded in 1983, Thinking Machines is a pioneer in parallel
technology for supercomputers and has created some of the world's
most powerful computers. Since filing for Chapter 11 protection in
August 1994, Thinking Machines has cut costs and begun transforming
operations to market its parallel software to add value and new
levels of performance to mainstream computing systems. The company
has had four consecutive profitable quarters since Oct. 1, 1994.
"Ladenburg sees Thinking Machines as a company with tremendous
upside, especially in the areas of parallel software technology,
networking and data mining applications. We are excited about
helping Thinking Machines achieve its full potential," said Brad
Gevurtz, senior vice president of Ladenburg, Thalmann & Co. Inc. and
head of the firm's high-tech investment banking area.
"The challenges of the business world have reached complex
proportions, requiring powerful, intelligent technologies. There is
a huge untapped market for our advanced software tools and
solutions," said Robert L. Doretti, president and chief executive
officer of Thinking Machines. "Our parallel software technologies
and data mining applications along with our new market driven focus
position us to fully exploit these opportunities."
"This transaction exemplifies the merchant banking direction
that Ladenburg, Thalmann is pursuing as a result of its acquisition
by New Valley Corp. last year," said Ronald J. Kramer, chairman and
chief executive officer of Ladenburg, Thalmann Group Inc.
Ladenburg, Thalmann & Co. Inc. served as financial advisor to TMCA
Corp. in its negotiations with Thinking Machines and structured the
investment made by its affiliate, Ladenburg, Thalmann Capital Corp.
Ladenburg, Thalmann Group Inc., is the parent of Ladenburg,
Thalmann & Co. Inc., a registered broker-dealer and investment bank,
and is owned by New Valley
Corp.
CONTACT: Sard Verbinnen & Co.,
George Sard/Anna Cordasco/Paul Caminiti,
212/687-8080
ATLANTIC CITY, N.J., Jan. 10 -- href="chap11.capital.html">Capital Gaming
International, Inc. (OTC Bulletin Board: GDFI) today announced
that
the plan of reorganization for its Louisiana subsidiary, Crescent
City Capital Development Corp. ("Crescent City") was approved by the
United States Bankruptcy Court, Eastern District of Louisiana. Such
plan of reorganization was submitted in Crescent City's bankruptcy
case under Chapter 11 of the U.S. Bankruptcy Code seeking
reorganization.
As part of the plan of reorganization, Crescent City is to be
sold to Mirage Resorts, Incorporated for approximately $55 million
plus the assumption of certain equipment liability of up to $6.5
million. The Company estimates that approximately $50 million will
be available for distribution to secured and unsecured creditors.
The Mirage transaction is contingent upon certain regulatory and
other approvals.
Commenting on the development, Edward M. Tracy, Capital Gaming's
President and CEO, stated, "We are pleased with the approval of
Crescent City's plan of reorganization and the Company and Mirage
can now focus on obtaining the regulatory approvals necessary to
consummate the Mirage transaction."
Based in Atlantic City, New Jersey, Capital Gaming International
is a multi-jurisdictional casino development and management company
with interests in the Native American gaming markets.
/CONTACT: Edward M. Tracy, President and Chief Executive Officer,
of Capital Gaming International, Inc., 609-383-3333/
In making the announcement, Raymond A. Ranelli, vice chairman,
Financial Advisory Services for Coopers & Lybrand, said, "Dom is a
'marque' player with exceptional technical ability and business
development skills. He has an outstanding reputation in the workout
and bankruptcy community and is nationally recognized in his field.
His highest priority is delivering top-quality value added services
to his clients. We are very pleased that Dom is joining our
Financial Advisory Services."
During his career DiNapoli has provided restructuring advice and
counsel to all parties involved in restructurings, including
troubled companies, shareholders, unsecured creditors and secured
creditors.
In addition to providing consulting advice, DiNapoli was
retained by the federal government to act as Special Trustee in the
second largest asset forfeiture in history, requiring him to manage
the orderly liquidation of approximately $400 million in assets
accumulated by a Long Island car dealer who swindled General Motors
Acceptance Corporation. These assets included two car dealerships,
more than 100 pieces of property, two golf courses and two Nevada
gold mines.
One of the world's leading professional firms, Coopers & Lybrand
L.L.P. provides services for enterprises in a wide range of
industries. The firm offers its clients the expertise of more than
16,000 professionals and staff in offices located in 100 U.S. cities
and, through the member firms of Coopers & Lybrand International,
more than 66,000 people in 125 countries worldwide. The firm's
Financial Advisory Services practice consists of more than 700
professionals providing advice in litigation matters,
restructurings, corporate finance transactions, and consulting to
the real estate, hospitality and gaming industries.
/CONTACT: Dave Nestor of Coopers & Lybrand, 212-536-2965/
SOUTH PLAINFIELD, N.J., Jan. 10, 1996 -- href="chap11.rickel.html">Rickel Home
Centers, Inc. today announced that it has reached an agreement in
principle with respect to the key economic terms of a restructuring
plan with representatives of, and advisors for, holders of more than
two-thirds of its outstanding Senior Notes. The restructuring will
be effected through a chapter 11 case in the U.S. Bankruptcy Court
for the District of Delaware, which was filed today. The agreement
is subject to formal documentation, including preparation of a
definitive chapter 11 plan and disclosure statement, which the
Company expects to file with the Court shortly.
Rickel has received commitments, subject to Court approval, for
$97 million in debtor-in-possession (DIP) financing. The financing
consists of an $80 million secured revolving credit facility from
Congress Financial Corp., a subsidiary of CoreStates Financial
Corp., and an additional $17 million in secured leasehold financing
from West Windsor Holding Corporation, an affiliate of Vornado
Realty Trust. Rickel also has recently completed the sale of certain
underperforming leaseholds for cash proceeds totaling approximately
$10 million.
Under the terms of the proposed restructuring, the $126.5
million of the Company's 13+ percent Senior Notes would be exchanged
for $63.25 million of New 13+ percent Senior Notes, approximately 84
percent of the common stock of the reorganized Company and a cash
distribution of 7 percent of the principal amount of the old Senior
Notes. Vendors and other non-Note unsecured creditors would receive
notes in principal amount equal to 100 percent of their allowed
prepetition claims. These 100 percent notes would mature on
December 15, 2001 and bear interest at 8 percent per annum. As an
alternative to the 100 percent notes and interest, vendors and all
other non-Note unsecured creditors may elect to receive an 80
percent cash recovery of their allowed prepetition claims, with 40
percent payable on the effective date of the plan and 40 percent
payable over the following two years.
The chapter 11 plan will be subject to a vote by the Company's
creditors and confirmation by the Court. During the restructuring
process, Rickel will continue to conduct business as usual.
Jules Borshadel, Chief Executive Officer of Rickel, said, "This
restructuring, which we expect to complete in several months, should
enable us to implement the plans we have in place to improve
Rickel's performance, make sure that our stores are well stocked for
the Spring home improvement season, and take the steps necessary to
continue in our position as a significant force in the Northeast do-
it-yourself market.
"Since we effected the combination of Rickel and Channel in
November 1994, we have more than realized the cost savings and other
benefits we originally anticipated," said Mr. Borshadel.
"Unfortunately, the recent difficult conditions in the retailing
industry as a whole, and the severe downturn in the do-it-yourself
marketplace, resulted in poor bottom-line performance, necessitating
the restructuring."
As of October 28, 1995, the company had consolidated assets of
approximately $260 million and consolidated liabilities of $268
million.
Rickel is a full-service home improvement retailer serving the
do-it-yourself marketplace, based on South Plainfield, New Jersey,
with 86 stores operating in New Jersey, Pennsylvania, New York,
Delaware and Maryland.
/CONTACT: Dawn Dover or Andrea Bergofin of Kekst and Company,
212-593-2655/
CUPERTINO, Calif., Jan. 10, 1996 -- Apple
Computer, Inc.
(Nasdaq: AAPL) today said that it has completed a preliminary review
of its financial results for its first fiscal quarter which ended
December 29, 1995. The Company stated that while unit shipments and
revenues increased, compared to the same quarter a year ago, gross
margins declined significantly, resulting in an operating loss for
the Company. Apple had disclosed on December 15, 1995 that unit
shipments, revenues and gross margins were not meeting internal
expectations, and a loss could result if the trend continued.
For the quarter, unit shipments increased 12% over the year-ago
quarter and revenues increased 11%. However, gross margins dropped
to approximately 15% compared to 20.7% last quarter and 28.7% in the
year-ago quarter. The Company's net sales and gross margins as a
percentage of sales were both below the Company's internal
projections, and as a result, the Company now expects to record a
net operating loss of approximately $68 million after taxes, or $.55
per share before restructuring charges.
The Company is evaluating the quarter's results closely while it
undertakes a thorough review of its operations. Among the actions
the Company will take is a restructuring of its business, and record
a related charge against earnings in the final first quarter
financial results. The Company will be prepared to discuss the
details of its financial results as well as the initial phase of its
restructuring when it announces first quarter results on January 17,
1996.
The Company attributed the shortfall in gross margins and
operating profits to price reductions the Company implemented in
response to intense price competitiveness in the personal computer
industry, especially in Japan, as well as inventory adjustments of
approximately $80 million before taxes to reflect current pricing
pressures.
"We are obviously disappointed about the results for the quarter
and are taking actions to meet our challenges," said Michael
Spindler, Apple's chief executive officer. "It is our top priority
to return the Company to profitability and provide value to
shareholders.
"During this challenging business climate, we are gratified that
the Macintosh platform continues to enjoy solid acceptance among our
customers and developers. As an example, yesterday's opening of
MacWorld Expo in San Francisco attracted record-breaking crowds,
with a projection of 80,000 attendees. Apple's strong customer
following is evident in recent industry recognition which shows
Apple leading all other vendors in customer satisfaction and brand
loyalty...
"In addition, Apple's technologies continue to receive
widespread acclaim in the industry, with new technologies and
products such as Apple's QuickTime and QuickDraw 3D multimedia
technologies, Internet solutions and Newton. We are making great
progress with promising new technologies and products for the
future, including our next generation operating system called
Copland, OpenDoc component software, and Internet solutions.
"We believe Apple's technology is ideally suited to help users
take full advantage of the Internet. We will leverage our
multimedia leadership in providing new ways for users to take
advantage of this rapidly growing new area of communication," he
said.
These statements about estimated results are preliminary and
based on partial information and management assumptions. The
Company will announce its actual results for the quarter on or about
January 17.
Except for the historical information contained herein, the
matters discussed in this news release are forward looking
statements that involve risks and uncertainties. Potential risks
and uncertainties include without limitation continued competitive
pressures in the marketplace (especially in Japan); the effect any
reaction to such competitive pressures has on current inventory
valuations; and the need for and any effect of any business
restructuring. Further information on potential factors which could
affect the Company's financial results are included in the Company's
Form 10-K for the 1995 fiscal year, filed with the SEC.
.. Source: JD Power and Associates, 1995, Desktop personal
computer, end user satisfaction study and CI Infocorp. 1995 brand
loyalty study.
Apple Computer, Inc., a recognized innovator in the information
industry and leader in multimedia technologies, creates powerful
solutions based on easy-to-use personal computers, servers,
peripherals, software, online services, and personal digital
assistants. Headquartered in Cupertino, California, Apple develops,
manufactures, licenses and markets solutions, products, technologies
and services for business, education, consumer, entertainment,
scientific & engineering and government customers in over 140
countries.
Apple's home page on the World Wide Web: http://www.apple.com/" target=_new>http://www.apple.com/">http://www.apple.com/
NOTE: Apple, the Apple logo, Macintosh, OpenDoc,
QuickTime, and
Newton are registered trademarks and QuickDraw is a trademark of
Apple Computer, Inc. registered in the USA and other countries.
/CONTACT: Bill Slakey, Investor Relations, 408-974-3488, or Betty
Taylor, Public Relations, 408-974-3983, Pam Miracle, Public
Relations,
408-974-0688, all of Apple Computer, Inc./
SOUTH PLAINFIELD, N.J., Jan. 10, 1996 -- href="chap11.rickel.html">Rickel Home
Centers, Inc. announced today that it has obtained approval
for $97
million of debtor-in-possession (DIP) financing from the U.S.
Bankruptcy Court for the District of Delaware, with an initial order
approved for immediate use of $55 million.
Earlier today, the Company reached an agreement in principle
with respect to the key economic terms of a restructuring plan with
representatives of, and advisors for, holders of more than two-
thirds of its outstanding Senior Notes, to be effected through a
chapter 11 case.
The financing consists of an $80 million secured revolving
credit facility from Congress Financial Corp., a subsidiary of
CoreStates Financial Corp., and an additional $17 million in secured
leasehold financing from West Windsor Holding Corporation, an
affiliate of Vornado Realty Trust. The agreement is subject to
formal documentation, including preparation of a definitive chapter
11 plan and disclosure statement, which the Company expects to file
with the Court shortly.
Rickel is a full-service home improvement retailer serving the
do- it-yourself marketplace, based in South Plainfield, New Jersey,
with 86 stores operating in New Jersey, Pennsylvania, New York,
Delaware and Maryland.
/CONTACT: Dawn Dover or Andrea Bergofin, both of Kekst and Company,
212-593-2655/