Bankruptcy News For - March 25, 1996



  3. Coltec Industries announces first quarter charge due to Fokker bankruptcy


  5. All For A Dollar announces year-end results

  6. Cray Computer approves disclosure statement

  7. General Acceptance Corp. reports fourth quarter earnings


FORT LAUDERDALE, Fla., March 25, 1996 - Discovery Zone, Inc. (Nasdaq: ZONE)  
announced today that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy  
Code in the U.S. Bankruptcy Court for the District of Delaware. The Company said that it elected  
to seek court protection in order to facilitate the implementation of its operational turnaround and a  
financial restructuring.

Discovery Zone said that it will operate in the normal course of business during the reorganization  
proceeding and that it has received a commitment for $15 million in debtor-in-possession ("DIP")  

"We believe reorganizing under Chapter 11 is in the best interests of the Company," said Donna  
Moore, Chief Executive Officer of Discovery Zone. "A successful Chapter 11 reorganization will  
address the problems caused by the Company's rapid expansion and put Discovery Zone on  
stronger financial footing."

Moore continued: "Discovery Zone is a viable concept, and we have an opportunity to revitalize  
our operations with new marketing programs and entertainment concepts that will improve the  
Discovery Zone experience for kids and their parents."

Discovery Zone said that it would move immediately to close unprofitable store locations in order  
to improve its operating cost structure and allow the Company to focus on core markets and  
locations. Discovery Zone said that it would also continue to seek to reduce operating costs in  
remaining locations, primarily through the renegotiation of unfavorable leases to reduce occupancy  

Separately, Discovery Zone announced that Donna Moore has been named President and Chief  
Executive Officer and a director of the Company.

Moore had served as President and Chief Operating Officer of Discovery Zone since joining the  
Company in July 1995. Moore, a 35- year veteran of consumer retailing, has held various  
management positions in retailing with major consumer-oriented companies, including President of  
the North American division of Laura Ashley, Inc., where she successfully oversaw a major  
reorganization. From 1987 to 1992, Moore was Senior Vice President - Stores for The Walt  
Disney Co. and spearheaded the dramatic growth of The Disney Stores from a 2-store test  
concept to an international entertainment retailer with over 150 locations. Before joining The Walt  
Disney Co., Moore was Senior Vice President - Stores of Williams-Sonoma, where she oversaw  
the growth of that company from 17 stores to more than 80 locations. Prior to that, Moore was  
Vice President of Retailing at Marriott and developed that company's retail concept from 14  
in-hotel gift shops to 150 resort and specialty shops. Moore was most recently with Motherhood  
Maternity, where she held the positions of President and Chief Executive Officer since 1993.

Additionally, Discovery Zone announced that Sumner Redstone, Chairman and CEO of Viacom  
Inc., and Phillippe Dauman, Deputy Chairman and Executive Vice President of Viacom Inc. have  
resigned their positions as directors of Discovery Zone. Discovery Zone said that Adam Phillips,  
Senior Vice President and General Counsel of Blockbuster Entertainment Group was appointed a  
director of the Company. J. Brian McGrath and John L. Muething continue to serve as directors of  
Discovery Zone. Viacom has a substantial interest in Discovery Zone through its acquisition in 1994  
of Blockbuster Entertainment Group.

Discovery Zone is the leading operator of children's indoor entertainment and fitness facilities.

CONTACT: Robert Mead, for Discovery Zone, 305-627-2643 or 212-484-6701


BILOXI, Miss., March 25, 1996 - Casino America, Inc. (Nasdaq: CSNO) announced today that  
the Louisiana Riverboat Gaming Commission approved the Company's application to move the  
Grand Palais's Riverboat to Lake Charles, Louisiana, as well as the Company's plan to acquire  
Crown Casino Corporation's 50% interest in St. Charles Gaming Company for 1,850,000 shares  
of Casino America common stock and other consideration.

The closing of the transaction is subject to a number of other conditions, including confirmation of  
the Plan of Reorganization by the Bankruptcy Court in the Eastern District of Louisiana, approval  
by the Louisiana State Police Riverboat Gaming Enforcement Division and other consents and  
approvals. The parties are currently anticipating a closing of the transaction to occur within 45 days.

Casino America, Inc. owns and operates four riverboat and dockside casinos. The Company  
currently operates the Isle of Capri Casino in Biloxi, Mississippi, the Isle of Capri Casino in  
Vicksburg, Mississippi and the Isle of Capri Casino in Bossier City, Louisiana. The Isle of Capri  
Casino in Bossier City, Louisiana is a joint venture between Casino America, Inc. and Louisiana  
Downs. This joint venture also has a separate joint venture with Crown Casino Corporation to  
operate an Isle of Capri Casino near Lake Charles, Louisiana.

CONTACT: Allan B. Solomon, Executive Vice President, 407-995-6660, or Rex Yeisley, Chief  
Financial Officer, 601-436-7054, both of Casino America

Coltec Industries announces first quarter charge of 13 cents

NEW YORK -- March 25, 1996 -- Coltec Industries Inc (NYSE:COT) will take a pre-tax  
charge of approximately $14 million ($9.2 million after tax, or 13 cents per share) in the 1996 first  
quarter resulting from the cessation of shipments of landing gears and flight control systems for the  
Fokker 70 and 100 aircraft. Fokker has filed for bankruptcy and stopped producing these aircraft.  
The charge will provide primarily for the write-off of non- recurring development costs, losses on  
foreign exchange contracts, vendor claims, inventories and receivables related to the programs.

In addition, full-year pre-tax earnings will be reduced by $4 million ($2.6 million after tax, or four  
cents per share) as a result of lost sales on the Fokker 70 and 100 programs.

Coltec Industries is a New York-based manufacturing company serving aerospace, automotive and  
other industrial markets.

CONTACT: Coltec Industries, New York; Michael Dunn, (212) 940-0523


WORCESTER, Mass., March 25, 1996 -- Cambridge Biotech Corporation (CBC) announced  
today that Stephen J. DiPalma has been appointed to the positions of Vice President of Finance,  
Treasurer and Chief Financial Officer and Eileen J. Heffernan has been appointed to the position of  
Director of Product Management and Business Development. Mr. DiPalma joins CBC from the  
Picker Institute, an affiliate of Beth Israel Hospital in Boston, where he was Chief Financial Officer  
and Chief Operating Officer. Ms. Heffernan joins CBC from Athena Diagnostics, Inc., where she  
was Manager, Diagnostic Licensing.

"Mr. DiPalma brings to CBC thirteen years of experience in healthcare ventures, including the  
Picker Institute and Genica Pharmaceutical Corporation. Ms. Heffernan brings five years of  
business development experience with Athena Diagnostics, Inc. and Genica Pharmaceutical  
Corporation," remarked Alison Taunton-Rigby, Ph.D., President and Chief Executive Officer of  
CBC. "Together, their broad base of knowledge will allow them to make significant and immediate  
contributions to Cambridge Biotech Corporation as the Company builds its therapeutic business."

While at the Picker Institute, which specializes in quality assessment, improvement and information  
services, Mr. DiPalma's responsibilities included finance and accounting, information systems,  
business development and marketing. Previously, Mr. DiPalma was Chief Financial Officer of  
Genica Pharmaceutical Corporation, a biotechnology company focused on therapeutic  
development and innovative diagnostic testing targeted at neurological disorders. Mr. DiPalma  
received his M.B.A. from Babson College.

While at Athena Diagnostics, the division of Athena Neurosciences, Inc. formed as a result of its  
acquisition of Genica in 1995, Ms. Heffernan held a number of business development positions,  
most recently Manager, Diagnostic Licensing. Prior to Athena Diagnostics, Ms. Heffernan was a  
research assistant at the University of Connecticut where, in addition, she received her B.A. degree  
in Biology.

Cambridge Biotech Corporation, which filed for protection under Chapter 11 of the United States  
Bankruptcy Code on July 7, 1994, is a therapeutics and diagnostics company focusing on  
infectious disease and cancer. The company is developing and commercializing therapeutic and  
prophylactic vaccines for infectious diseases and immunotherapeutics for cancer. The company's  
therapeutics business includes the Stimulon(TM) family of adjuvants, the most advanced of which,  
QS-21, is in clinical development through corporate and academic partners, and proprietary  
vaccines. The proprietary vaccines include a feline leukemia vaccine currently on the market and  
vaccines in development in the areas of tick- borne diseases, streptococcal pneumonia, malaria,  
bovine mastitis and canine Lyme disease. Cambridge Biotech's diagnostic business is primarily  
focused on retroviral, Lyme and enteric diseases.

CONTACT: Alison Taunton-Rigby, Ph.D., President and Chief Executive Officer of Cambridge  
Biotech Corporation, 508-797-5777, or Robert Gottlieb, Senior Vice President of Feinstein  
Partners Inc., 617-577-8110

All For A Dollar announces year-end results

SPRINGFIELD, Mass. -- March 25, 1996 -- All For A Dollar Inc. (OTC:AFAD), today  
announced sales and earnings for the fourth quarter and fiscal year ended Dec. 30, 1995.

Sales for the fourth quarter decreased 4.7 percent to $17.0 million from $17.8 million in the  
corresponding period in 1994, primarily as a result of unusually inclement December weather.  
Same store sales declined 5.6 percent for the quarter. During the 1995 fourth quarter the company  
opened five new stores. Income before reorganization items and income taxes for the fourth quarter  
was $1.6 million, compared to $1.3 million in the corresponding period in 1994. The net income  
for the quarter was $4.4 million, or $.63 per share, primarily as a result of recording a $2.6 million  
income tax benefit for net operating loss carryforwards, compared to a net loss of $944,000, or  
$.14 per share, in the corresponding period in 1994.

Sales for the fiscal year ended Dec. 30, 1995 decreased 14.2 percent to $47.3 million from $55.2  
million in 1994. Same store sales increased 1.1 percent for the year. The loss before reorganization  
items and income taxes for the year was $894,000, compared to a loss of $4.6 million in 1994.  
The net income for the year was $8.3 million, or $1.19 per share, compared to a net loss of $12.4  
million, or $1.78 per share for 1994.

The company also announced that it has sublet or assumed eight store leases from Rich's $1, $2,  
$3 stores effective March 1, 1996. All For A Dollar presently operates 122 retail close-out variety  
stores in nine northeastern states. Additionally, the company will add two new stores to the  
Rochester, N.Y. market in April.

The company also announced the employment of Joseph B. Carey of Wilbraham, Mass. to serve  
as controller.

CONTACT: All For A Dollar Donald A. Molta, 413/733-1203

Cray Computer approves disclosure statement with respect to company's liquidating Plan of  

COLORADO SPRINGS, Colo. -- March 25, 1996 -- Cray Computer Corp. Monday  
announced that the United States Bankruptcy Court has approved the Disclosure Statement filed  
by Cray Computer Corp. with respect to the company's liquidating Plan of Reorganization and set  
the hearing to consider confirmation of the plan for May 15, 1996.

The plan proposes the appointment of a Liquidating Trustee and the sale of the company's plant to  
M/A-COM Inc. for a price of $7.3 million (subject to an opportunity for competitive bidding), to  
be closed immediately following confirmation of the plan.

Because the claims of creditors exceed the assets of Cray Computer Corp., the company believes  
that there will be no distribution to its shareholders.

Early in 1995, and continuing after it filed for bankruptcy on March 24, 1995, the management of  
the company sought to reorganize and continue in business. By mid-July, it became apparent that  
this would not be possible because no other company would risk the substantial capital necessary  
to complete and market the CRAY-4 supercomputer.

The company then began to liquidate assets at the best obtainable prices. It has now completed the  
sale of all major assets other than its plant. Following confirmation of the plan and the closing of the  
sale of the plant, only the resolution of some disputed claims will remain.

Terry A. Willkom, president of Cray Computer, said, "We are very sorry that we were unable to  
find the capital necessary to complete the CRAY-4 and stay in business. Once we reluctantly  
reached that conclusion, our only course was to obtain the best possible values for the company's  
assets under these difficult circumstances.

"We are satisfied that we have nearly completed that task, but sorry that it has not produced  
enough money to allow a distribution to our many loyal shareholders."

CONTACT: Cray Computer Corp., Colorado Springs Terry A. Willkom, 719/579-6464

General Acceptance Corp. reports fourth quarter earnings; enters into forbearance agreement with  
primary lender

BLOOMINGTON, Ind. -- March 25, 1996 -- General Acceptance Corp. today reported its  
earnings for the fourth quarter and calendar year 1995.

Pro forma net income for the year ended Dec. 31, 1995 was $716,700 vs. pro forma net income  
of $2,544,100 for 1994. As the company was an S Corporation until April, 1995, net income has  
been adjusted to reflect pro forma income taxes. Pro forma net income per share was 13 cents for  
1995 vs. 57 cents for 1994.

The company reported a pro forma loss of $3,109,600 for the fourth quarter of 1995 vs. pro  
forma earnings of $722,500 for the same three months of 1994. This equates to (51 cents) per  
share and 16 cents per share for the fourth quarters of 1995 and 1994 respectively. During the  
fourth quarter of 1995, the company recorded a provision for credit losses of $6.2 million vs.  
$104,000 in the fourth quarter of 1994. This action resulted in an increase in the company's total  
available for credit losses to 16.5% of contracts receivable as of Dec. 31, 1995, compared to  
14.2% as of Dec. 31, 1994.

Revenues for the year were $25.6 million vs. $10.6 million for 1994, an increase of 142%.  
Revenues for the three months ended Dec. 31, 1995 were $6.9 million compared to $3.8 million  
for the fourth quarter of 1994, an increase of 82%. Contracts receivable were $129.4 million as of  
Dec. 31, 1995 vs. $62.1 million as of Dec. 31, 1994, an increase of 108%.

General Acceptance Corp. also announced that it entered into a forbearance agreement with its  
primary lender, whereby the lender agreed to forbear from exercising certain rights and remedies  
under its loan agreement with the company through June 30, 1996. As previously announced, on  
Jan. 17, 1996, the company was notified of an event of default regarding certain performance  
covenants under its loan agreement. Pursuant to the forbearance agreement, the lender will continue  
funding the company under its $100.0 million revolving line of credit. During the period from March  
15, 1996 through June 30, 1996, the interest rate under the loan agreement will increase by 1%.  
The forbearance agreement sets revised covenants related to delinquency and credit losses through  
June, requires lender approval prior to opening any additional company branch offices and requires  
the company to maintain the credit underwriting standards which it implemented in January, 1996.

In addition, the company announced it has developed an action plan, acceptable to the lender,  
which is designed to reduce delinquencies and credit losses, and requires the company to expedite  
the ongoing development of the company's infrastructure. The company intends to hire additional  
management personnel, continue to upgrade its management information systems and internal  
underwriting controls and to increase training on the Norwest System. While continuing to build the  
infrastructure, the company, plans to maintain contracts receivable near the 1995 year-end level  
through the first six months of 1996.

Upon General Acceptance Corp.'s satisfactory performance of the action plan and compliance with  
the forbearance agreement, on or before July 1, 1996, General Acceptance Corp. and its lender  
have agreed to execute amended and restated loan documentation, mutually satisfactory in all  
respects to both parties. In the event that new loan documentation is not completed by July 1,  
1996, the parties have agreed that the forbearance agreement will remain in effect through  
December 31, 1996, except that the imposition of the extra 1% interest will cease as of June 30,  

General Acceptance Corp. is a specialized consumer finance company, principally, engaged in  
purchasing and servicing installment sale contracts, relating to the sale of used automobiles, to  
consumers with limited access to traditional financing sources. The company acquires these  
contracts from dealers with whom the company has a formal business relationship and, to a lesser  
extent, from used vehicle sales outlets operated by the company. The company operates in 19  
states, is headquartered in Bloomington, and has regional offices in Ohio, Illinois, Florida, Missouri,  
New Jersey, Pennsylvania, Arizona and Michigan.

CONTACT: General Acceptance Corp., Bloomington Martin Bozarth, 812/876-3555