TCR_Public/960111.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


        CLINTONS ARE NEARLY BROKE, MONEY REVEALS; LEGAL BILLS LEAVE FIRST
        FAMILY'S NET WORTH APPROACHING ZERO

        
            NEW YORK, Jan. 11, 1996 -- A mountain of legal
bills
        - and strict self-imposed limits on outside contributions to allay
        them - have put Bill and Hillary Clinton on a collision course with
        bankruptcy, reveals the February issue of Money magazine.
        


            The nation's largest financial publication reports that the
        Clinton's net worth, which it had estimated at $697,000 in July
        1992, is now approaching zero.  The reason:  The President is facing
        legal bills of more than $2 million a year over his Whitewater
        investments and the alleged-sexual-harassment case filed by Paula
        Jones in May 1994 - and the meter is running.
        


            Indeed, were it not for the $800,000 or so Clinton is getting
        from his legal defense fund and the temporary relief offered by his
        $400-or- so-an-hour lawyers who are not demanding immediate full
        payment, the First Family could already be broke.
        


            Without their legal woes, Money notes, the Clintons would be in
        superb financial shape.  The magazine estimates that their
        investment assets have grown from about $862,000 in 1992 to as much
        as $2 million today, thanks to a robust stock market and their
        likely stellar- performing blind trust run by Boston-based Essex
        Investment Management.
        


            Problem is, the Clinton's liabilities have exploded
        simultaneously. In 1993 their only liability was a $64,800 mortgage
        on a half share of Hillary's parents' Little Rock condominium,
        valued at $180,000.  By mid- 1995 - the latest data available - they
        owed $1.6 million in unpaid legal bills, resulting mostly from
        congressional and special prosecutor probes of Whitewater.  (While
        the Clintons have run up more than $2.1 million in legal bills,
        their Presidential Legal Expense Trust has brought in only $865,871
        in contributions.)  "Our problem," says Michael Cardozo, the trust's
        executive director, "is that we are considered agents of an elected
        official and so cannot solicit money.  No direct mail.  No fund
        raisers.  No Barbra Streisand concerts.  We can't even advertise our
        address or phone number."
        


            Moreover, Money reports, to guard against any appearance of
        buying favors, the Clintons have ruled out contributions from
        political action committees, unions and corporations to pay their
        legal bills and are limiting individual contributions to $1,000 per
        person annually.  the result:  Their legal bills are outpacing
        contributions by more than two to one.
        


            The magazine adds, however, that the Clinton's financial cloud
        has a few silver linings.  For one thing, they can tap their blind
        trust to pay expenses when daughter Chelsea - now attending the
        $13,000-a-year Sidwell Friends school - starts college in 1997.
        Then too, once the President leaves office, fund-raising limits for
        the Clintons' legal bills will disappear, and their income will
        likely soar, particularly if they turn to book-writing or the
        lecture circuit.  And should they emerge from their legal battles
        unindicted, the Independent Counsel Act may provide Bill and Hillary
        with federal reimbursement of their expenses.
        


        /CONTACT:  Patti Straus of Money magazine, 212-522-2695/



        NORTHBRIDGE MAN PLEADS GUILTY TO BANKRUPTCY FRAUD, U.S. ATTORNEY
        ANNOUNCES

       
            BOSTON, Jan. 11, 1996 -- A Northbridge man pleaded
guilty
        today to concealing assets of bankruptcy debtor Linwood Mills, Inc.,
        a retail furniture business which was located in Linwood,
        Massachusetts.
        


            United States Attorney Donald K. Stern stated that MAURICE
        LAVOIE, 47, of 42 Thomas Street, Northbridge, Massachusetts, pleaded
        guilty today to one count of bankruptcy fraud for concealing from
        bankruptcy creditors and the bankruptcy trustee inventory belonging
        to Linwood Mills, a company LAVOIE owns.
        


            During a hearing before United States District Judge Nathaniel
        M. Gorton in Worcester, a prosecutor stated that after Linwood Mills
        filed for bankruptcy, LAVOIE transferred some of its inventory to
        storage facilities in Worcester and Uxbridge and failed to disclose
        the transfers in the bankruptcy proceeding.
        


            LAVOIE faces a maximum penalty of five years' imprisonment and a
        $250,000 fine.
        


            The case was investigated by agents of the Federal Bureau of
        Investigation, was referred by the U.S. Trustee's Office in Boston
        and Worcester, and is being prosecuted by Assistant U.S. Attorney
        Mark J. Balthazard of Stern's Economic Crimes Unit.
        


        /CONTACT: Joy Fallon and Anne-Marie Kent of the US Attorney's
        Office, 617-223-9445/


        
New sub-prime lender/consultant teams with
        fraud specialist

        
            SAN RAFAEL, Calif.--Jan. 10, 1996--New City
        Asset Management, Inc. of Chesterfield, Mo., a mortgage lender
        specializing in sub-prime paper and mortgage fraud, announced an
        alliance with Prieston Law Firm, the nation's leading provider of
        mortgage fraud resolution and related industry counsel.  
        


            New City will rely on Prieston for assistance in recovery on
        complex and outdated mortgage fraud cases, as well as litigation for
        cases requiring legal action.  
        


            New City was formed earlier this year by industry veterans with
        more than 30 years experience in quality assurance, underwriting and
        servicing of portfolios pocked with bad loans and defaulted
        property. The company seeks to lend its expertise in all matters of
        mortgage fraud, including investigation, prevention, recovery, loss
        mitigation and maximizing profitability of real estate owned (REO)
        units.  The company is currently working with six clients, including
        several regional lenders and money centers.  
        


            "Approximately 15 to 20 percent of all credit losses within the
        industry are a result of mortgage fraud," explained Steve Halper,
        President and CEO of New City Asset Management, Inc.  "There's a
        pressing need for an entity that can act as a lender's silent
        partner in all aspects of fraud and delinquency.  In today's
        climate, there's a broad array of loss mitigation and recovery
        options available.  There are profits to be realized and money to be
        recovered from bad loans through processes which are virtually
        transparent to lenders and their client base."  
        


            Founded in 1984, Prieston Law Firm resolved more than 200
        mortgage fraud loans last year alone totaling over $34 million in
        recovery, and is the only law firm solely devoted to mortgage fraud
        resolution.  Prieston's flagship service is the Mortgage Fraud
        Resolution (MFR) system, a complete service covering all legal
        representation pertaining to recovery within a 120-day period.  
        


            "Prieston is one of the foremost experts on mortgage fraud
        resolution through litigation and non-litigation action in the
        industry," Halper continued.  "We wanted to offer our clients the
        array of services Prieston Law Firm provides.  It's a perfect fit of
        both services and companies -- companies dedicated to one of the
        most complex and intricate areas of mortgage lending."  
        


            Halper first approached the firm in 1992 when he headed
        Citicorp's quality assurance department and sub-prime servicing and
        compliance operations.  New City was formed less than three years
        later by Halper and several fellow Citicorp executives.  
        


            "Steve possesses the expertise and management experience
        critical to successfully operating in this segment of the industry,"
        explained Arthur J. Prieston, Prieston Law Firm's founder and senior
        counsel.  "With the explosion of automated underwriting and more
        stripped down mortgage operations, the potential and incidence of
        fraud continues to grow.  The need for specialized providers such as
        New City's analytical capabilities and Prieston Law Firm's
        resolution expertise becomes increasingly vital to curbing fraud and
        protecting lenders from its tragic consequences."  
        


            New City will provide lenders mortgage fraud consulting as well
        as training for loan production, quality assurance and servicing
        personnel.  In addition, the company will purchase problem
        portfolios, supervise and market REOs and in conjunction with
        Prieston negotiate workouts and make whole agreements between
        responsible parties involved in a fraudulent loan.  
        


            Headquartered in San Rafael, Calif., Prieston Law Firm
        complements New City as well as all client's Quality Assurance
        Department and in-house legal counsel, assisting in all peripheral
        mortgage fraud matters including bankruptcy issues, commitment terms
        and bidding instructions.  Prieston Law Firm has resolved
        fraudulentloans for more than 70 of the industry's leading mortgage
        lending institutions, banks, credit unions and thrifts, including
        Community Lending, Dollar Mortgage Corporation, Hamilton Financial
        and MICAL Mortgage.  
        


            For more information on Prieston Law Firm and the Mortgage Fraud
        Resolution service, contact Arthur J. Prieston at (800) 662-6100,
        via fax at (415) 454-7053, or write Prieston Law Firm, 901 Tamalpais
        Avenue, Suite 200, San Rafael, Calif. 94901.  
        


        CONTACT:  Prieston Law Firm,
                  Arthur J. Prieston, (800) 662-6100
                  or
                  William Mills Agency,
                  Mark Wheeler, (404) 264-7204,
                  wmamark@aol.com.



        KMART GETS REQUISITE AGREEMENTS TO REMOVE REAL ESTATE 'PUT'
        PROVISIONS; EARLY PAYMENT PROVISIONS SUBSTANTIALLY ELIMINATED
        
            TROY, Mich., Jan. 11, 1996 -- Kmart Corporation
(NYSE:
        KM) today announced that the requisite banks have agreed in
        principle to the elimination of the 'put' provisions on
        approximately $550 million of real estate debt and to extend the
        term of certain of the Company's revolving credit facilities.  Kmart
        also has obtained signatures from all of the non-bank institutions.
        The agreements in principle announced Dec. 20, 1995 to eliminate the
        "puts" were approved by the Company's lead banks and 20 of the 22
        other institutions when they were initially announced.
        


            The Company has also been advised that approvals have been
        obtained for a new agreement with certain banks to establish a
        committed letter of credit facility of up to $285 million with a
        term to February 1997. The new credit facility will replace Kmart's
        former uncommitted letter of credit facilities and is in addition to
        $2.7 billion in existing bank credit lines, including letters of
        credit available under existing facilities.
        


            Pending closing, the downgrade-related early payment provisions
        on approximately $550 million principal amount of real estate debt
        are substantially eliminated.  Final closing of the agreements is
        expected before the end of February 1996, subject to certain
        conditions.  Upon closing, the "put" provisions will be permanently
        eliminated and the previously announced modifications of the
        Company's bank credit facilities would continue.
        


            In addition, the agreements provide that amounts outstanding
        under existing bank credit lines in the amount of approximately $2.2
        billion will remain outstanding until October 1997, and
        approximately $500 million to February 1997.
        


            "We are on schedule to close these agreements, renegotiate our
        bank credit facilities, and explore other financial alternatives
        that will enhance our liquidity and financial flexibility," said
        Marvin P. Rich, Kmart's Executive Vice President, Strategic
        Planning, Finance and Administration.
        


            The above summary is subject to the specific terms of the entire
        agreements, which the Company has previously filed or will be filing
        with the Securities and Exchange Commission.
        


            Kmart Corporation serves America with more than 2,163 Kmart and
        169 Builders Square retail outlets in all 50 states, Puerto Rico,
        the U.S. Virgin Islands and Guam.  Kmart International operations
        extend to Canada, the Czech Republic, Slovakia, and through joint
        ventures, to Mexico and Singapore.
        


        /CONTACT:  Robert M. Burton, Director, Investor Relations,
        810-643-1040, or Shawn M. Kahle, Vice President, Corporate Affairs,
        810-643-1021, both of Kmart/