FORT LEE, N.J., April 4, 1996 - Prins Recycling Corp.
(Nasdaq: PRNS) announced today a net loss of $3.2 million, or $0.32
per share, for the year ended December 31, 1995. This compares with
a net loss of $4.6 million, or $0.84 per share, recorded for the
year ended December 31, 1994. Net sales for 1995 totaled a record
$76.7 million, a 145% increase over last year sales of $31.3
million.
End-market prices for the recyclable commodities that the
Company processes and markets declined materially during the third
and fourth quarters of 1995 from record levels in the first half of
1995. Primarily as a result of this decline, the Company recorded a
$8.0 million net loss in the fourth quarter of 1995, which includes
expenses relating to the start-up of the Company's new facilities in
Newark and Boston, the settlement of a contract dispute with
Baltimore County and the impact of two partially uncollectible
accounts. This compared to a $6.1 million net loss in the fourth
quarter of 1994, which included a one-time, non- cash charge of $6.7
million.
Commenting on the results, Fred L. Prins, Chairman and Chief
Executive Officer, said, "The steep decline in prices for the
commodities we process and market clearly had a negative effect on
our fourth quarter performance which adversely impacted our 1995
results. However, we believe we would be well positioned to take
advantage of a recovery in the markets for these commodities. We
have been successful in restructuring some major contracts with
vendors and are pursuing restructuring other contracts with vendors
and we have settled our contract dispute with Baltimore County. Our
new state-of-the-art facilities in Newark and Boston have come on-
line, and we continue to streamline and improve our operations."
Per share results for 1995 are based on 9,949,876 weighted
average shares outstanding compared to 5,426,974 shares outstanding
in 1994. The increase in shares outstanding was attributable to the
Company's use of stock as total or partial consideration in the
acquisitions of Paper Chase Exchange, Inc., Basic Waste Systems,
Inc., Vic Barick Paper Co., Inc. and P. Pepe & Sons, Inc.
Prins Recycling Corp. is a recycling firm with processing
facilities located in Illinois, Maryland, Massachusetts,
Pennsylvania and New Jersey.
CONTACT: Lee Feldman, V.P.-General Counsel of Prins Recycling
Corp., 201-886-1600; or Hal Levine of The Levine Group, 212-682-
8875
BOCA RATON, Fla., April 4, 1996 - Model Imperial, Inc.
(Nasdaq: MODL) today announced that its bank lenders, to which it
presently owes approximately $45 million, have reached agreement in
principle with the Company on a forbearance agreement, subject to
final documentation and execution. The Company is acknowledging
that it is in default under its loans and the bank lenders would
agree to forbear from exercising their default rights until August
31, 1996 to allow the Company to attempt to (i) restructure its
business outside of Chapter 11, (ii) reduce operating costs and
expenses, (iii) improve operations and administration through
downsizing and (iv) negotiate a composition agreement with trade
creditors. The Company will be required to comply with an operating
budget approved by the bank lenders pursuant to which a small
percentage of the debt to the bank lenders would be repaid during
the forbearance period. The continuation of the forbearance
agreement through August 31, 1996, will be subject to various
conditions, including compliance with the operating budget. As pan
of the agreement, the Company's Chief Executive Officer and majority
shareholder, Harold M. Ickovics, is to make an unsecured loan for $1
million to Model Imperial Fine Fragrances, Inc., the Company's
primary operating subsidiary, and the Company will be allowed to
liquidate certain excess inventory.
Model Imperial, Inc. is one of the largest wholesale
distributors of brand-name fragrances in the United States. The
Company primarily distributes prestige fragrances, but also offers
mass market fragrances and certain cosmetic and beauty care
products, for men and women. The Company is also one of the largest
operators of licensed retail departments in the country with over
650 retail locations throughout the United States. The Company's
principal customers include many of the nation's leading mass
merchants, discount retailers and drug store and supermarket chains,
as well as numerous independent pharmacies and other specialty
retailers. Model Imperial's fragrance and cosmetic distribution
product line comprises approximately 4,000 individual brand-name
items.
CONTACT: Len Silverstein, Model Imperial, Inc., 407-241-8244
DENVER, April 4, 1996 - Hemmeter
Enterprises, Inc., (HEI)
announced today that the U.S. Bankruptcy Court for the Eastern
District of Louisiana has confirmed the plans for reorganization for
the company and its Bullwhackers casino subsidiaries. The
reorganization plan for the company's subsidiary, href="chap11.gpalais.html">Grand Palais
Riverboat, Inc. (GPRI), was also confirmed on March 26, 1996.
The GPRI reorganization plan is conditioned on the closing of
the sale of GPRI's assets to Casino America. A late April date is
anticipated for that closing. In addition to the Casino America
closing, the reorganization plan of HEI and its Bullwhackers
subsidiaries remains subject to a number of contingencies including
approval by the Colorado Limited Gaming Control Commission and the
effectiveness of the registration statement which HEI has filed with
the Securities & Exchange Commission. The company anticipates that
the conditions of the effectiveness of the plans will be satisfied
within the next 30-45 days.
"We are extremely excited about the court's confirmation of our
reorganization plans," said HEI President & CEO, Stephen J. Szapor,
Jr. "Once the plans become effective, we can move forward and focus
our resources and attention on growing our Colorado operations," he
said.
The company previously announced that as part of its expansion
plans, it had agreed to purchase the Silver Hawk Casino in Black
Hawk and build an approximate 600-space parking facility. The
parking structure will be located between the Silver Hawk building
and the company's existing Bullwhackers Casino operations. The
company anticipates closing on the Silver Hawk transaction within
the next few weeks.
Szapor also announced that the company will change its name from
Hemmeter Enterprises, Inc. to Colorado Gaming & Entertainment Co.
(CGEC) once the plan of reorganization becomes effective. Szapor
said the company will remain headquartered in Denver and he will
assume the same title of president & CEO with CGEC.
"We will not be changing the name of our successful Bullwhackers
casinos; they enjoy very strong brand name recognition. We are only
changing the parent company name so it will more accurately reflect
the company's focus on the Colorado gaming industry," he said.
"We could not have gotten through this challenging period of
time without the hard work and dedication of our 500+ employees
throughout the organization," said Szapor. "We have continued to
provide what we believe to be is the best overall gaming environment
in Colorado, and I look forward to completing our expansion plans,"
he said.
Hemmeter Enterprises, Inc. owns and operates the Bullwhackers
Casinos in Black Hawk and Central City, Colorado.
CONTACT: Stephen J. Szapor, Jr., President of Hemmeter,
303-863-2400; or Z. James Czupor of The InterPro Group, 303-871-
8909