Bankruptcy News For - March 8, 1996

  5. The Bon-Ton Stores Announces Fourth Quarter, Fiscal 1995 Results


            NEW YORK, March 8, 1996 - Riddell Sports Inc. (Nasdaq:
        RIDL) announced that it has entered into a letter of intent to
        settle the claims asserted against it in two separate fraudulent
        ET AL. No. 95-2261 (Bankr. D.N.J.) and INNOVATIVE PROMOTIONS, INC.,
        GOODS, INC.), (Adv. Proc. No. 94-2656 (RG)).

            In the Levitt action, the bankruptcy trustees of href="chap11.macgregor.html">MacGregor
        Sporting Goods, Inc.
and MGS Acquisition, Inc. alleged that
        failed to pay fair consideration for its 1988 and 1989 acquisitions
        of substantially all the assets and businesses of two former second-
        tier subsidiaries of MacGregor Sporting Goods, Inc. at a time when
        MacGregor was insolvent or undercapitalized.  The businesses
        acquired included Riddell's core football equipment business, the
        "MacGregor" trademark licensing business and the non-football uses
        of the Riddell trademark.  The trustees sought rescission of the
        purchases or unspecified damages and voiding of the liens of
        Riddell's principal lender in the property at issue.  Similar claims
        were asserted by certain purported unsecured creditors of MacGregor
        Sporting Goods Inc. in the Innovative action, in which action the
        trustees had intervened.  The purported unsecured creditors sought
        rescission or damages of at least $22 million plus interest, and
        voiding of the lender's liens.

            Under the proposed agreement Riddell will pay the trustees
        approximately $1.4 million in the aggregate in exchange for the full
        settlement, compromise and release of all claims against the
        Company, its principal lenders and others arising out of or in
        connection with the 1988 and 1989 transactions.  The proposed
        agreement further provides for an injunction requiring the Trustees
        to satisfy any and all valid and enforceable claims arising out of
        or related to the 1988 and 1989 transactions out of the settlement
        proceeds.  Riddell indicated that it would take a pre-tax charge of
        $1.9 million against 1995 earnings to reflect amounts payable under
        the proposed settlement and related expenses including anticipated
        costs of finalizing the settlement agreement and obtaining
        bankruptcy court approval.

            Riddell indicated, however, that there can be no assurance that
        the signing of the letter of intent will lead to a final settlement
        because the settlement is subject to execution of a definitive
        settlement agreement and must be approved by two bankruptcy courts.
        Riddell understands that the creditors' committee for MacGregor has
        retained new counsel which intends to oppose the settlement.

            David Mauer, Riddell's CEO, commented, "While we are confident
        that ultimately we would have prevailed on the merits of the case,
        the expense and management time devoted to it is counter to our
        desire to focus our resources on the new strategies recently
        launched by the company."

             Mr. Mauer continued, "The settlement is costly, but the expense
        of defending ourselves, even in what we view as a meritless case
        against the Company, is also high.  Accordingly, we believe this
        settlement is in the best interests of the Company and its

            Riddell Sports Inc. is the world's leading manufacturer and
        reconditioner of football equipment.  The Company sells football
        helmets (including helmets made for display purposes for
        collectors), shoulder pads and other sports protective equipment
        under the Riddell brand, and provides reconditioning services under
        the Riddell/All American name. The Company also licenses the Riddell
        and MacGregor trademarks for use on athletic footwear, leisure
        apparel and sports equipment.

        CONTACT:  Lisa Marroni of Riddell Sports Inc., 212-826-4300


            BEVERLY HILLS, Calif., March 8, 1996 - GIANT GROUP, LTD.
        (NYSE: GPO) today reported a net loss of $11,508,000 or $2.28 per
        share for the fourth quarter ended December 31, 1995 and a net loss
        for the year of $22,332,000 or $4.37 per share.

            The fourth quarter and year end results include GIANT's non-cash
        losses of its 48% owned affiliate, Rally's Hamburgers Inc., in the
        amount of $11,585,000 for the quarter and $22,074,000 for the year.

            Rally's loss of $24,900,000 or $1.59 per share for the fourth
        quarter and a loss of $46,900,000 or $3.00 per share for the year
        1995 included non-cash charges of $13.7 million for the early
        adoption of Statement of Financial Accounting Standards No. 121
        (SFAS 121) and $4.4 million primarily for the planned disposal of
        certain excess properties.  Non-cash charges were $18.1 million in
        the fourth quarter and $31.0 million for the year.

            Rally's announced that it is experiencing improvement in same
        store sales as the attached chart shows, and believes this
        improvement is a result of the operational, organizational and
        marketing changes the company has made over the last year.  Rally's
        actions have resulted in company owned same store sales being up by
        approximately 3.5% year over year through the first two months of

            During 1995 and early 1996, GIANT purchased under a previously
        announced stock repurchase program 702,000 shares of its common
        stock. The Board of Directors continues to feel that the current
        market price of GIANT's stock represents an excellent investment
        opportunity for the Company.

            Mr. Burt Sugarman, Chairman and Chief Executive Officer, stated
        "We are pleased to report that a series of actions taken by both
        Rally's and GIANT leads us to be optimistic about 1996.  The
        reorganization of Rally's, although only now coming into place, is
        already showing results, GIANT has demonstrated its confidence in
        Rally's with the announcement of a proposed exchange offer to
        acquire additional stock of Rally's in return for preferred stock of
        GIANT.  In addition, GIANT has sold $22,000,000 face amount of
        Rally's bonds to Rally's for a total price of $15,200,000 resulting
        in a reduction of Rally's bonds outstanding to approximately
        $63,000,000.  This transaction will also save Rally's approximately
        $2 million annually in interest expense.

            "I have demonstrated my feelings about the future of GIANT GROUP
        by exercising options to acquire 300,000 shares of stock for

                               GIANT GROUP, LTD.
                              FINANCIAL HIGHLIGHTS
                                   Three-Months Ended   Twelve-Months Ended
                                       December 31,          December 31,
                                             (Dollars in thousands)
                                        1995      1994      1995      1994
           Total revenue                  $1,212    $1,234    $4,096
           Equity in loss of affiliate  (11,585)   (5,713)  (22,074)
           Write-down in carrying value
         of investment in affiliate      ---  (19,396)       ---  (19,396)
           Loss before income taxes     (11,794)  (27,505)  (22,618)
           Credit for income taxes         (286)      (89)     (286)
           Loss from continuing
         operations                 (11,508)  (27,416)  (22,332)  (34,350)
           Income from discontinued
         operations, net of income
         taxes                           ---         1       ---     6,598
           Gain on sale of discontinued
         operations, net of income
         taxes                           ---    48,223       ---    48,223
           Net income (loss)           ($11,508)   $20,808 ($22,332)
           Earnings per common share:
         Loss from continuing
         operations                  ($2.28)   ($4.22)   ($4.37)   ($5.26)
           Income from discontinued
         operations, net                 ---       ---       ---      1.02
           Gain on sale of discontinued
         operations, net                 ---      7.46       ---      7.46
           Net income (loss)             ($2.28)     $3.24   ($4.37)
                                            (Shares in thousands)
           Weighted average common
         shares, including common
         stock equivalents in 1994     5,039     6,463     5,110     6,463
                   SAME STORE SALES -- YEAR TO YEAR % CHANGE
                                           1995                     1996
                           1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Jan/Feb
           Western Region         -20%      -20%      -14%       -1%
           Northern Region         -4%        3%        7%        1%
           Eastern Region         -11%       -9%       -5%       -1%
           East Central Region     -1%        1%       -1%       -3%
           Southern Region        -13%       -8%      -10%       -5%
           West Central Region     -4%        3%        1%        1%
           Total Company Stores  -8.1%     -3.3%     -2.5%     -1.1%
           Franchisee Stores    -10.0%     -5.6%     -3.1%     -4.5%
            Notes:  1. New advertising campaign instituted in most markets
        during the last week of February, 1996.
            2. Closed stores are removed from same store computations at
        date of closure.

        CONTACT:  Burt Sugarman-CEO, or Cathy L. Wood-V.P. & CFO,
        310-273-5678, both of GIANT GROUP


            LOUISVILLE, Ky., March 8, 1996 - Rally's Hamburgers, Inc.
        (Nasdaq: RLLY) announced a loss of $24.9 million or $1.59 per share
        for the fourth quarter and a loss of $46.9 million or $3.00 per
        share for the year of 1995.  The Company recorded non-cash charges
        totaling $18.1 million during the fourth quarter and $31.0 million
        for the year. The fourth quarter non-cash charges include $13.7
        million for the early adoption of Statement of Financial Accounting
        Standards No. 121 (SFAS 121) and $4.4 million primarily for the
        planned disposal of certain excess properties.  Exclusive of these
        charges, the Company's 1995 fourth quarter loss would have been $6.7
        million or $.43 per share and the loss for the year would have been
        $15.9 million or $1.02 per share.

            The implementation of SFAS 121, "Accounting for the Impairment
        of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,"
        has no cash impact.  This new accounting requirement changes the way
        a company must identify and measure impairment for long-lived
        assets.  The new standard requires companies to test at a lower
        level of the business for such impairment, where circumstances
        indicate that impairment may exist.

            Total revenues increased 1% in the fourth quarter to $46.7
        million from $46.1 million in the comparable period of 1994.
        Company-owned same store sales declined by 1% during the fourth
        quarter.  Systemwide same store sales declined by 3% during the
        quarter.  For the year, total revenues increased 1% to $188.9
        million from $186.3 million in 1994. Company-owned same store sales
        declined by 4% during the year. Systemwide same store sales declined
        by 5% for the year.  A chart outlining same store sales trends since
        the first quarter of 1995 has been included in this release.

            Michael E. Foss, Senior Vice President and Chief Financial
        Officer stated, "In the third quarter earnings release we
        articulated the four basic steps the Company is taking to stem the
        losses it has been incurring and return the Company to
        profitability.  We are making progress down this path:  First, we
        have attacked the decline in same store sales with new marketing,
        promotional and advertising strategies. Our actions to date have
        resulted in Company-owned same store sales being up by approximately
        3.5% year over year through the first two months of 1996.  Rally's
        newest advertising campaign focusing on the taste of its products,
        which is targeted directly toward our core user, was introduced in
        most markets during the last week of February. Second, as of March
        7, 1996 the Company has closed 16 under performing restaurants that
        had been previously targeted for closure and we have divested 15
        surplus properties which have generated $2.4 million in cash that
        was received during the first quarter of 1996.  Third, the Company
        has reorganized itself around 6 regional divisions.  This
        decentralization will allow decision making in the Company much
        closer to the guests we serve.  Fourth, we instituted significant
        reductions in both our field and corporate overhead structures late
        in the fourth quarter."

            During January 1996, two significant announcements were made.
        First, the Company announced that its largest shareholder, GIANT
        GROUP, LTD. was going to initiate an exchange offer that should
        result in GIANT significantly increasing its percentage ownership of
        the Company from its current level of 48%.  Additionally, the
        Company bought back $22 million face value of its outstanding 9 7/8%
        Senior Notes.  These notes were purchased for a combination of $11.1
        million in cash and $4.1 million in a short term note.  As a result
        of this repurchase, $15.2 million of the Senior Notes have been
        classified as a current liability in the year-end balance sheet.
        This repurchase will save the Company approximately $2 million
        annually in interest expense.

            The Company was pleased to note that the February 1, 1996
        edition of the well known Restaurants & Institutions magazine
        reported a first place ranking for Rally's, in the hamburger
        category, in overall value, significantly beating out its three
        largest competitors:  McDonald's, Burger King and Wendy's.

            The Company ended the fourth quarter with approximately $14.4
        million in cash and investments.  Asset sales provided $.6 million
        in cash during the quarter.  Total debt was approximately $91.8
        million at the end of the fourth quarter, down $.3 million from the
        end of the third quarter.  Total debt as of the end of February,
        1996 was reduced to approximately $75.3 million due principally to
        the repurchase of the Senior Notes in January.  The face value
        amount of the Senior Notes that remained outstanding as of the end
        of February was approximately $63 million.

            The Company opened no units and closed 16 units during the
        fourth quarter.  Franchise operators opened 4 units and closed 5
        units during the quarter.  As of March 7, 1996 there were 481
        Rally's Hamburgers restaurants operating in 19 states.

                    Same Store Sales - Year to Year % Change
                                              1995                1996
                              1st Qtr  2nd Qtr  3rd Qtr 4th Qtr  Jan/Feb
         Western Region        -20%      -20%     -14%     -1%       9%
         Northern Region        -4%        3%       7%      1%      -2%
         Eastern Region        -11%       -9%      -5%     -1%       5%
         East Central Region    -1%        1%      -1%     -3%       6%
         Southern Region       -13%       -8%     -10%     -5%       1%
         West Central Region    -4%        3%       1%      1%       4%
        Total Company Stores  -8.1%     -3.3%     -2.5%  -1.1%     3.5%
        Franchisee Stores    -10.0%     -5.6%     -3.1%  -4.5%    -0.6%
        Notes:  1. New advertising campaign instituted in most markets
                   during the last week of February, 1996.
                2. Closed stores are removed from same store computations at
                   date of closure.
              (In thousands, except shares and per share amounts)
                                 Three Months Ended   Twelve Months Ended
                               Dec. 31,     Jan. 1,     Dec. 31,  Jan. 1,
                                   1995       1995         1995      1995
           Restaurant sales          45,267     44,242      181,778
           Royalty fees               1,438      1,743        6,855
           Franchise fees              (30)         90          106
           Area development fees         20         15          120
        Total revenues           46,695     46,090      188,859   186,318
           Restaurant costs
        of sales                 17,196     15,430       64,813    62,518
           Restaurant operating expenses
        exclusive of depreciation
        and amortization and other
        operating expenses shown
        separately below         21,929     19,232       83,671    77,292
           General & Administrative
        expenses                  5,106      4,726       19,606    18,848
           Advertising and promotion
        expenses                  3,529      2,817       13,188    10,898
           Depreciation and
        amortization              2,708      3,420       13,006    14,139
           Provision for restructuring
        program, other restaurant
        closures, and
        other charges            18,106     11,384       31,045    17,259
        Total costs
        and expenses             68,574     57,009      225,329   200,954
           Loss from operations    (21,879)   (10,919)     (36,470)
           Interest expense         (2,654)    (2,395)     (10,682)
           Interest income               57        130          538
           Other                         46      (403)          234
        Total other             (2,551)    (2,668)      (9,910)   (9,619)
           Loss before
        income taxes           (24,430)   (13,587)     (46,380)  (24,255)
        INCOME TAXES                420    (1,602)          539   (4,982)
           Net loss                (24,850)   (11,985)     (46,919)
           Loss per common and
        common equivalent share  (1.59)     (0.79)       (3.00)    (1.42)
           Weighted average
        shares outstanding       15,649     15,095       15,620    13,564
        ASSETS                             December 31,       January 1,
                                                   1995             1995
        Current assets:
        Cash and cash equivalents                $9,494           $2,707
        Investments                               4,933            4,085
        Royalties receivable, including
         $227 and $483 from related parties
         at January 1, 1995 and December 31,
         1995, respectively, net of a reserve
         for doubtful accounts of $402 and
         $922 at January 1, 1995 and December 31,
         1995, respectively                         818            1,016
        Accounts and other receivables, net
         of a reserve for doubtful accounts
         of $176 and $453 at January 1, 1995
         and December 31, 1995, respectively      2,131            3,893
        Inventory, at lower of cost or market     1,056              943
        Current portion of notes receivable,
         including $108 and $10 from related
         parties at January 1, 1995 and
         December 31, 1995, respectively,
         net of a reserve for doubtful accounts
         of $109 at December 31, 1995               113              250
        Prepaid expenses and other current
         assets                                   1,131            1,382
        Assets held for sale                      2,506              ---
         Total current assets                    22,182           14,276
        Assets held for sale                      3,517           10,930
        Net property and equipment, at
         historical cost                         78,683          113,009
        Notes receivable, less current
         portion, including $197 and $165
         from related parties at January 1,
         1995 and December 31, 1995,
         respectively, net of a reserve for
         doubtful accounts of $433 at
         December 31, 1995                          676              441
        Intangible and other assets, less
         accumulated amortization of $4,743
         and $6,888 at January 1, 1995 and
         December 31, 1995, respectively         32,334           30,760
          Total assets                         $137,392         $169,416
        Current liabilities:
        Accounts payable                         $8,773           $8,263
        Accrued liabilities                      15,959           10,319
        Current maturities of long-term debt
         and obligations under capital leases    17,544            2,494
         Total current liabilities               42,276           21,076
        Senior notes, net of discount of
         $897 and $768 at January 1, 1995
         and December 31, 1995, respectively     69,034           84,103
        Long-term debt, less current maturities   5,749            2,105
        Obligations under capital leases,
         less current maturities                  5,631            5,439
        Other liabilities                         8,030            3,206
         Total liabilities                      130,720          115,929
        Shareholders' equity:
        Common stock, $.10 par value,
         50,000,000 shares authorized,
         15,837,000 and 15,927,000 shares
         issued at January 1, 1995 and
         December 31, 1995, respectively          1,593            1,584
        Additional paid-in capital               60,804           60,610
        Less: Treasury shares,
         239,000 and 273,000 shares
         at January 1, 1995 and
         December 31, 1995, respectively        (2,108)          (2,009)
        Retained deficit                       (53,617)          (6,698)
         Total shareholders' equity               6,672           53,487
         Total liabilities
          and shareholders' equity             $137,392         $169,416

        CONTACT:  Michael E. Foss, Senior Vice President and Chief
        Financial Officer of Rally's Hamburgers, 502-254-8916


            MINNEAPOLIS, March 8, 1996 - Minnesota Brewing Company
        announced today that one of its principal customers, href="chap11.winter.html">Winterbrook
, filed a petition for bankruptcy under Chapter 11
of the
        United States Bankruptcy Code in Seattle, Wash. on Monday, March 4,
        1996.  Richard A. McMahon, the President of Minnesota Brewing,
        stated that as of March 1, 1996, Minnesota Brewing had unpaid
        receivables in the aggregate amount of approximately $800,000 from
        Winterbrook Corporation, however this includes charges for over
        $400,000 of Winterbrook product still in its warehouse.

            Since July of 1993, Minnesota Brewing has produced La Croix
        water for Winterbrook Corporation at Minnesota Brewing's Saint Paul
        brewery. McMahon stated that the Company intended to work to try to
        minimize the impact on the Company from the bankruptcy filing, by
        agreeing with Winterbrook to affirm the contract and working with
        them to continue production during its bankruptcy proceeding,
        exploring alternatives for producing water under a Minnesota Brewing
        label, or entering into an arrangement with other water bottlers.
        McMahon stated the Company is unable at this time to predict an
        effect on earnings, but does not anticipate that it would create any
        liquidity problem.

        CONTACT:  Richard A. McMahon, President of Minnesota Brewing,

The Bon-Ton Stores Announces Fourth Quarter, Fiscal 1995

            YORK, Pa. -- March 8, 1996 -- The Bon-Ton Stores,
        Inc. (Nasdaq:BONT) today reported results for the fourth quarter
        ended February 3, 1996.  

            For the fourteen weeks ended February 3, 1996, the Company
        reported a net loss of $1.7 million or $0.16 per share.  This
        compares to net income of $13.9 million or $1.25 per share in the
        fourth quarter of fiscal 1994.  The Company recorded a one-time
        charge to earnings in the fourth quarter of approximately $6.0
        million, or $0.54 per share, reflecting the costs associated with
        its previously reported restructuring.  Excluding the one-time
        charges, net income for the quarter was $4.2 million, or $0.38 per
        share.  Sales for the fourteen week period totaled $213.9 million, a
        decrease of 5.1% from the $225.3 million reported in the 13 week
        period in fiscal year 1994.  Comparable store sales for the thirteen
        weeks ended January 27, 1996 decreased 7.5%.  

            For the fifty-three weeks ended February 3, 1996, the Company
        reported a net loss of $9.2 million or $0.83 per share, compared to
        net income of $13.6 million or $1.23 per share reported in the 52
        week period of the prior fiscal year.  Fiscal 1995 results were
        negatively impacted by the fourth quarter restructuring charges and
        the $3.5 million in other nonrecurring expenses that were previously
        reported on October 25, 1996.  Excluding the one-time restructuring
        and non-recurring charges, net income for the fifty-three week
        period was $0.2 million, or $0.02 per share.  The earnings decline
        is attributable to a difficult retail environment, new competition,
        poor performance of some acquired stores and severe weather
        conditions.  Year-to-date sales for the fifty-three weeks ended
        February 3, 1996, increased 22.7% to $607.4 million from $494.9
        million reported in the 52 week period in fiscal 1994.  Comparable
        store sales for the fifty-two weeks ended January 27, 1996 increased

            Commenting on the results, Michael L. Gleim, Vice Chairman and
        Chief Operating Officer, stated, "While 1995 results were severely
        impacted by the high level of restructuring charges and other
        nonrecurring expenses, we feel these charges and the related
        workforce reductions will allow the Company to move into fiscal 1996
        with a productive, streamlined business that should generate
        improved earnings."  

            Mr. Gleim continued, "We are pleased with the early Spring
        results we have seen due to our strategic merchandise changes and
        inventory intensification efforts we have implemented to date.  The
        company announced yesterday that fiscal February month comparable
        store sales increased 8.4%."  

            The Bon-Ton operates 68 department stores in middle and
        secondary markets in Pennsylvania, New York, Maryland, West
        Virginia, and New Jersey.  The stores carry broad assortments of
        brand-name fashions and accessories for women, men and children, as
        well as home furnishings.

                            THE BON-TON STORES, INC.
                 (Amounts in thousands, except per share data)
                              Fourteen    Thirteen    Fifty-Three   Fifty-Two
                            Weeks Ended  Weeks Ended  Weeks Ended  Weeks Ended
                              2/3/96       1/28/95      2/3/96      1/28/95    
        Net Sales                $213,915     $225,347     $607,357
        Other Income                1,021        1,086        2,266
                              214,936      226,433      609,623      497,489
        Costs and Expenses:
          Costs of
           merchandise sold       146,159(1)   137,936      387,947(1)
          Selling, general
           and administrative      59,404       62,186      204,867
          Depreciation and
           amortization             3,947        2,581       11,895
          Non-recurring expenses        0(1)         0        5,471(1)
          Restructuring charges     5,690(1)         0        5,690(1)
                              215,200      202,703      615,870      470,821
         Income (loss) from
          operations                 (264)      23,730       (6,247)
        Interest expense, net       3,021        2,110        8,722
        Income (loss) before
         income taxes              (3,285)      21,620      (14,969)
        Income tax provision
         (benefit)                 (1,561)       7,717       (5,766)
        Net income (loss)         $(1,724)     $13,903      $(9,203)
        Per Share Amounts
         Net income (loss)         $(0.16)       $1.25       $(0.83)
        Weighted Average Shares
         Outstanding               11,059       11,152       11,044
        (1) Non-recurring expenses are $3.5 million or $0.32 per share on an
        after-tax basis.  Restructuring charges, which include a $3.5
        million (pre-tax) charge recorded as a component of cost of
sales, amounts to $6.0 million or $0.54 per share on an after-tax basis.  

        CONTACT: Naomi Rosenfeld/Eileen Howard/Stefanie King;
                 Media Contact: Michael McMullan;
                 Morgen-Walke Associates,
                 (212) 850-5600


            GREENWICH, Conn., March 8, 1996 - Resurgence Properties
        Inc. (Nasdaq SmallCap: RPIA) announced today that its consolidated
        net loss for the quarter ended and the year ended December 31, 1995
        was $4,162,000 ($.41 per share) and $7,156,000 ($.72 per share),
        respectively.  The net loss for the quarter ended December 31, 1994
        and the period April 7, 1994 (commencement of operations) through
        December 31, 1994 was $10,081,000 ($1.01 per share) and $12,239,000
        ($1.22 per share), respectively.  The 1995 twelve month results
        include an extraordinary gain of $839,000 (of which $79,000 occurred
        in the fourth quarter) in connection with the purchase of an
        interest in the Company's Senior Debt at prices below face amount.
        In addition, in accordance with current generally accepted
        accounting principles which require the Company to carry its assets
        at the lower of depreciated cost or fair value, the twelve month
        1995 results reflect write-downs for impairment of $9 million (of
        which approximately $5 million was recorded in the fourth quarter),
        primarily relating to the impairment of certain assets held for
        sale, mortgage loans and operating properties.  Such write-downs
        were taken only on those assets transferred from Liberte Investors
        on April 7, 1994 in connection with the consummation of Liberte's
        Chapter 11 reorganization.  The 1994 results include write-downs for
        impairment of $8.5 million which were recorded in the fourth
        quarter.  The income before write-down for impairment of value and
        extraordinary gain was $1,010,000 for the year ended December 31,
        1995 versus a $3,779,000 loss for the prior year.  For the year
        ended December 31, 1995 the Company received approximately $7.6
        million in net proceeds from asset dispositions.  At December 31,
        1995, the book value of the Company's real estate portfolio was
        approximately $144 million and shareholders' equity was
        approximately $82 million.

            In January and February 1996 the Company sold two operating
        properties, an earning mortgage and a number of land assets
        resulting in net proceeds of approximately $10.9 million and a gain
        of approximately $102,000. In addition, the Company has entered into
        contracts for the sale of two operating properties for approximately
        $9.6 million.  Both contracts are subject to customary closing
        conditions and are expected to close in March or April 1996.

            Resurgence is engaged in diversified real estate activities
        including the ownership, operation and management of retail, office,
        industrial/ warehouse and multi-family real estate located
        throughout the United States, and investments in mortgage loans.
        Resurgence was formed as a result of the consummation of the Chapter
        11 reorganization of Liberte Investors (f/k/a Lomas and Nettleton
        Mortgage Investors) on April 7, 1994. Pursuant to the
        reorganization, Liberte transferred most of its assets to
        Resurgence.  Resurgence is managed and administered by Wexford
        Management LLC.

                            RESURGENCE PROPERTIES INC.
                               Financial Highlights
                     (in thousands, except per share amounts)
                                Balance Sheet Data
                                                        December 31,
        Assets:                                     1995          1994
        Operating Real Estate Assets
         (net of accumulated depreciation
         and amortization of $4,337 and $1,945)    $95,070     $105,356
        Mortgage Loans on Real Estate (net of
         allowance for loan losses of
         $5,295 and $10,830)                       16,919       30,026
        Assets Held for Sale                       31,707       19,090
        Total Real Estate Assets                  143,696      154,472
        Cash and Cash Equivalents                   8,818       26,877
        Other Assets                                3,349        1,898
        Total Assets                             $155,863     $183,247
        Liabilities and Shareholders' Equity:
        Total Debt                                $66,032      $85,316
        Other Liabilities                           7,830        8,746
        Total Liabilities                          73,862       94,062
        Redeemable Preferred Stock                    300          300
        Shareholders' Equity                       81,701       88,885
        Total Liabilities and Shareholders'
         Equity                                  $155,863     $183,247
        Net Book Value Per Share
         (10,000,000 shares outstanding):           $8.17       $8.89
                           RESURGENCE PROPERTIES INC.
                              Financial Highlights
                    (in thousands, except per share amouts)
                                 Operating Data
                                                            For the Period
                                                             April 7, 1994
                               For the    For the    For the  (commencement
                                Quarter    Quarter     Year   of operations)
                                Ended      Ended      Ended      Through
                              Dec. 3l,    Dec. 31,   Dec. 31,     Dec. 31,
                                1995        1994       1995        1994
        Total Revenues         $5,974      $5,516    $23,857     $14,995
        Operating Expenses      3,032       4,842     13,087      12,227
        Interest Expense        1,421       1,600      6,438       4,546
        Depreciation and
         Amortization             777         695      3,322       2,001
        Total Expenses          5,230       7,137     22,847      18,774
        Income (Loss) Before
         Write-down for
         Impairment of Value
          and Extraordinary
          Gain                    744      (1,621)     1,010     (3,779)
        Write-down for
         Impairment of Value    4,985       8,460      9,005      8,460
        Loss Before Extra-
         ordinary Gain         (4,241)    (10,081)    (7,995)   (12,239)
        Extraordinary Gain         79          --        839         --
        Net Loss              $(4,162)   $(10,081)   $(7,156)  $(12,239)
        Net Loss Per Common
         Share (10,000,000
         shares outstanding):
        Loss Before Extra-
         ordinary Gain         $(0.42)     $(1.01)      $(0.80)      $(1.22)
        Extraordinary Gain       0.01          --         0.08           --
        Net Loss               $(0.41)     $(1.01)      $(0.72)      $(1.22)

        CONTACT: Frank Goveia of Wexford Management LLC, 203-862-7060; or
        Josh Reiss of Burson-Marsteller, 212-614-5084