TCR_Public/960409.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 9, 1996



  1. Court sets date for Dauphin confirmation hearing
  2. SPATIALIZER AUDIO TO ACQUIRE CERTAIN ASSETS OF BANKRUPT HOME THEATER PRODUCTS
  3. BONNEVILLE PACIFIC CORPORATION ANNOUNCES SETTLEMENT
  4. L.A. Gear reports operating profit for first quarter of 1996
  5. HAYES OBTAINS FUNDING COMMITMENTS FOR ITS COURT-APPROVED REORGANIZATION PLAN
  6. EAGLE-PICHER INDUSTRIES FILES AMENDED PLAN OF REORGANIZATION



Court sets date for Dauphin confirmation hearing
        


            NORTHBROOK Ill. -- April 9, 1996 -- href="chap11.dauphin.html">Dauphin
        Technology Inc.
today announced that on April 4, 1996, the U.S.
        Bankruptcy Court approved the adequacy of the Disclosure Statement
        Relating to Debtor's Third Amended Plan of Reorganization
        ("Disclosure Statement") filed with the Court on April 1, 1996.
        


           Dauphin is now authorized to disseminate the Plan of
        Reorganization ("Plan") and Disclosure Statement to its creditors
        and shareholders and to solicit acceptance of the Plan, which
        Dauphin hopes will lead to its emergence from its Chapter 11 Case.
        The packages containing the necessary documentation will be mailed
        to Dauphin's creditors, shareholders and other parties of interest
        by April 11, 1996.  May 6, 1996, is the deadline set by the Court
        for the casting of votes by shareholders and creditors for
        acceptance or rejection of the Plan, which is set for confirmation
        on May 9, 1996.

        
            Dauphin's management is hopeful that its Plan will be approved
        by its creditors and shareholders.  Management looks forward to
        implementing the Plan, which is focused on product and technology
        diversification, including the development of industrial controls
        and related technology through its recently acquired Intercon
        Division.  In addition, the company is planning to start production
        of its DTR-2, a 2.5 pound palm-top computer capable of wireless
        communication, voice, pen, and keyboard input.

        
            Dauphin stock is publicly traded on the Over-the-Counter
        Bulletin Board under the symbol DNTKQ.
   


        CONTACT: Dauphin Technology Inc., Northbrook
                 Sheila A. Trendel, 847/559-8443, ext. 206



SPATIALIZER AUDIO LABORATORIES, INC. TO
ACQUIRE SELECTED ASSETS FROM HOME THEATER PRODUCTS
        


            WOODLAND HILLS, Calif., April 9, - Spatializer Audio
        Laboratories, Inc. (Nasdaq: SPAZ) announced today that it has signed
        an agreement in principle to acquire from href="chap11.hometheater.html">Home Theater Products
        International, Inc.
certain intellectual property and other
assets
        related to its compact disc changer technology for an undisclosed
        sum in a cash transaction.  The closing is scheduled for early May
        and is subject to completion of documentation, and regulatory and
        Bankruptcy Court approvals.  Home Theater Products has recently
        filed for protection under Chapter 11 of the Bankruptcy Code.
        


            Currently in the development stage, the technology is based on
        proprietary hardware and software designs which allow for expandable
        storage, rapid access and replay of any audio, video or data format
        5-1/4 inch compact disc from a common storage device.  Spatializer
        said that future products incorporating the technology, if
        successfully developed, should be adaptable to markets for home
        entertainment, personal computers, audio and video on-demand,
        network-based on-line data storage and retrieval applications, and
        the Internet.

        
            Spatializer Audio Laboratories, Inc. is a leading developer and
        licensor of next generation audio technologies for entertainment,
        consumer electronics and multimedia computing.  The company's
        patented 3-D audio processing technology is now incorporated in over
        100 products in more than 20 markets around the globe from brand
        name manufacturers such as Compaq, Hewlett-Packard, Seiko-Epson,
        Samsung, Panasonic, Hitachi and Sharp.  In addition, the company is
        actively engaged in identifying, acquiring and developing other
        audio, video and related technologies synergistic with its licensing
        and business strategy.


        CONTACT:  Wendy Marie Guerrero, CFO of Spatializer, 818-227-3370,
        E-Mail:  wendy@spatializer.com, href="http://www.spatializer.com" target=_new>http://www.spatializer.com">http://www.spatializer.com        



BONNEVILLE PACIFIC CORPORATION
ANNOUNCES SETTLEMENT

        
            SALT LAKE CITY, April 9, 1996 - href="chap11.bonneville.html">Bonneville Pacific
        Corporation
, through its Chapter 11 Bankruptcy Trustee (Roger G.
        Segal), announces today that a settlement has been reached with
        another defendant (of numerous remaining defendants) in the civil
        action entitled Segal v. Portland General, et al. now pending in the
        United States District Court for the District of Utah, Case No. 92-C-
        364J.  The settlement is with Robert L. Wood who at various times
        was Bonneville Pacific's Chief Financial Officer, Chief Executive
        Officer, President, Managing Director and Chairman of the Board.

        
            The Settlement provides for payment to Bonneville Pacific
        Corporation of the total sum of six hundred sixty-five thousand and
        no/100 dollars ($665,000.00) plus other consideration.  Mr. Wood has
        also agreed to meet with the Trustee and his counsel in order to
        disclose his knowledge about all matters related to Bonneville
        Pacific Corporation.
   

     
            The settlement is conditioned upon approval by the United States
        Bankruptcy Court (the Honorable John H. Allen) and by the United
        States District Court (the Honorable Bruce S. Jenkins).
      


        CONTACT:  Roger G. Segal for Bonneville Pacific, 801-532-2666



L.A. Gear reports operating profit for first quarter of 1996
        


            SANTA MONICA, Calif. -- April 9, 1996 -- L.A. Gear
        Inc. (NYSE:LA) Tuesday announced its financial results for the first
        quarter ended Feb. 29, 1996.  
        


            For the three months ended Feb. 29, 1996, the company reported
        net income of $1.1 million (5 cents per share) and a loss applicable
        to common stock of $900,000 (4 cents per share), compared with a
        1995 first-quarter net loss and a loss applicable to common stock of
        $11.6 million (51 cents per share) and $13.5 million (59 cents per
        share), respectively.  

        
            Net sales for the 1996 first quarter increased by 13.4 percent
        to $78.7 million, compared with $69.4 million in the prior-year
        period.
   

     
            Domestic net sales in the first quarter of 1996 increased by 48
        percent compared with the same period in 1995.  
      

  
            The increase in domestic net sales resulted principally from
        sales of $30.2 million (2.4 million pairs) to Wal-Mart to fulfill
        substantially all of the remaining balance of Wal-Mart's $80 million
        minimum purchase commitment for fiscal 1995, as compared with $4.6
        million in sales to Wal-Mart in the first quarter of fiscal 1995.  
        


            International net sales, which accounted for approximately 24.8
        percent of the company's total net sales in the first quarter of
        1996, decreased by 33.7 percent compared with the same period in
        1995.  

        
            This was due primarily to a decrease in demand for lighted shoes
        in Europe, the negative impact of poor economic conditions in Mexico
        and Central and South America, and a decrease of $1.41 in the
        average selling price per pair internationally.  
   

     
            The gross profit margin for the first quarter of 1996 increased
        to 31.2 percent from 29.9 percent for the same period in the prior
        year, primarily because of improved margins on sales of the
        company's spring 1996 product lines.  
      

  
            Total selling, general and administrative expenses decreased by
        $9.3 million, or 28.4 percent, to $23.4 million in the first quarter
        of 1996, compared with $32.7 million for the comparable prior-year
        period.  
        


            In the first quarter of 1996, domestic selling, general and
        administrative expenses decreased by $6.7 million (27.8 percent)
        from the comparable prior-year period, primarily because of expense
        reductions realized from the implementation of the company's 1995
        corporate reorganization plan.  

        
            International operating expenses decreased by $2.6 million (30.2
        percent) in the first quarter of 1996 compared with the prior- year
        period, primarily because of lower sales volume at the company's
        European and Mexican subsidiaries.  
   

     
            Cash and cash-equivalent balances declined by $8.6 million from
        Nov. 30, 1995, to a balance of $27.3 million at Feb. 28, 1996,
        primarily because of $7.1 million in net cash used for operating
        activities.  
      

  
            During the first quarter of 1995, inventory decreased from $51.7
        million (5.3 million pairs) at Nov. 30, 1995, to $39 million (4.2
        million pairs) at Feb. 28, 1996, primarily because of delivery of
        substantially all of the balance of Wal-Mart's 1995 minimum purchase
        commitment in the first quarter of 1996.  

        
            At March 31, 1996, the combined domestic and international
        backlog of orders for shipments scheduled primarily during the April-
        through- August 1996 period was $64.2 million, which represents
        ``future orders'' for the new Back-To-School product scheduled to
        ship during the company's 1996 second and third fiscal quarters.  
   

     
            The backlog at March 31, 1996, includes $2.4 million, which
        represents the balance of Wal-Mart's $80 million minimum purchase
        commitment for fiscal 1995.  Wal-Mart is not subject to any minimum
        purchase commitment for fiscal 1996.  The combined backlog at March
        31, 1995, for the comparable prior-year shipping period was $166.2
        million.  
      

  
            The lower backlog at March 31, 1996, was due primarily to (i)
        the inclusion in the March 31, 1995, backlog of $73.5 million of the
        $80 million 1995 minimum purchase commitment under the company's
        agreement with Wal-Mart and (ii) an approximate $21.2 million
        decrease in orders for children's lighted product.  

        
            Stanley P. Gold, chairman of the board, and William L. Benford,
        president, said:  ``While we are encouraged by the company's first
        operating profit in its first quarter since 1990, we recognize that
        there is much work yet to be done.  
   

     
            ``We hope to rekindle the excitement for our children's lighted
        product through our introduction of NEONZ, the next generation of
        lighted footwear featuring lighted panels on the shoes' uppers, in
        the second quarter of 1996.  
      

  
            ``For the back-to-school season, we will launch GRAf/x, a new
        temperature-sensitive collection that allows children to change the
        color of the upper, reveal a pattern or personalize their footwear
        by `writing' on their shoes.  

        
            ``Through these innovative new products and our ongoing
        worldwide print campaign supporting our women's product line, we
        hope to consistently communicate the L.A. attitude of fun, fashion
        and fitness to women and children everywhere.''
   

     
            L.A. Gear designs, develops and markets a broad range of quality
        athletic and lifestyle footwear for adults and children.


        
                      L.A. GEAR INC. AND SUBSIDIARIES
              Consolidated Condensed Statements of Operations
                  (In thousands, except per-share amounts)
                                (Unaudited)
          
                                             Three months ended
                                               Feb. 29 and 28,   
                                             1996          1995   
                
        Net sales                          $   78,666    $   69,392   
        Cost of sales                          54,112        48,652
        Gross profit                           24,554        20,740
        Selling, general and administrative
         expenses                              23,396        32,744
        Interest expense, net                     613           328
        Income (loss) before income taxes
         and minority interest                    545       (12,332)
        Income taxes                               --            --
        Minority interest                         554           690
        Net income (loss)                       1,099       (11,642)
        Dividends on mandatorily          
         redeemable preferred stock            (2,042)       (1,875)
        Loss applicable to common stock          (943)      (13,517)
        Income (loss) per common share
         before preferred dividends           5 cents     (51 cents)
        Loss per common share                (4 cents)    (59 cents)
        Weighted average common shares
         outstanding                           22,937        22,937
        
                    L.A. GEAR INC. AND SUBSIDIARIES
                Selected Consolidated Balance Sheet Data
                             (In thousands)
        
                                           Feb. 29,      Nov. 30,
                                             1996          1995
                                          (Unaudited)
        Cash and cash equivalents            $ 27,341      $ 35,956   
        Accounts receivable, net               62,231        46,630
        Inventories                            38,979        51,677
        Working capital                       106,087       103,999
        Convertible subordinated debentures    50,000        50,000
        Mandatorily redeemable preferred stock
         plus accrued and unpaid dividend     109,788       107,746
        Accumulated deficit                  (170,223)     (169,281)
        Shareholders' deficit                 (41,791)      (40,627)
        

        CONTACT:  L.A. Gear Inc., Santa Monica;
                  Jeffrey Rotondo, 310/581-7446
        


HAYES OBTAINS FUNDING COMMITMENTS FOR ITS COURT-APPROVED REORGANIZATION PLAN

        
            ATLANTA, GA - April 9, 1996 - Hayes
Microcomputer Products,
        Inc.
announced today that it has obtained the new capital funding
        sufficient to fully implement its Court-approved Plan of
        Reorganization.  Seeking an expeditious implementation of its Plan,
        which provides for payment of creditors' claims in full plus
        interest, Hayes filed a motion with the U.S. Bankruptcy Court
        seeking approval of the new capital funding transactions.
        


            "Our positive financial performance over the past quarter proved
        enormously attractive to several prospective investors, allowing
        Hayes to quickly secure the funding commitments to implement the
        company's Plan of Reorganization in accordance with our confirmation
        schedule," said Dennis Hayes, Chairman, Hayes Microcomputer
        Products, Inc.

        
            ACMA Limited, working in close cooperation with Hayes after
        Northern Telecom Inc. ("Nortel") withdrew its plans to invest in
        Hayes, recruited several Singapore-based companies to replace half
        the funding needed. These investors include Rinzai Limited and other
        Singapore investors led by ACMA.  Hayes independently secured the
        balance of the funding from two Hong Kong investors, including Kaifa
        Technology Holdings Limited and Rolling Profits Holdings Limited, a
        subsidiary of Wongs Limited.  Some of the new investors had
        previously sought to invest in the company before Hayes negotiated
        definitive agreements with Nortel and ACMA in October 1995.
   

     
            "The response from potential investors after Nortel withdrew was
        quick, strong and positive," said Dennis Hayes.  "We're very
        grateful to ACMA for working so intensely with us over the last 10
        days to secure the required funding and make the modifications to
        the definitive agreements to implement the new capital funding
        transactions.  We are especially pleased by the manufacturing and
        cost reduction expertise our new investors bring to Hayes."

        
            Each of Hayes new investors has agreed to execute documents to
        finalize the funding transactions for the Hayes Plan on or before
        April 15, 1996.  In addition, each investor has or will deposit
        their respective investment into US-based escrow accounts in
        preparation for a final closing on or around April 15.  It is
        expected creditors will be paid within a few days after the closing
        of the funding of Hayes Plan. As previously announced, the CIT
        Group/Credit Finance, Inc. will provide credit facilities totaling
        $70 million, on which the company expects to initially draw only $20
        million.
   

     
            Recognizing the specific objectives of the new investors,
        several modifications were made to the previous investment plan
        negotiated with Nortel and ACMA.  Under these new capital funding
        transactions, Hayes may proceed with a target initial public
        offering when it reaches a $150 million market capitalization rather
        than $250 million as previously planned.  The Board of Directors
        will consist of seven rather than six directors which will include
        the new President/CEO of Hayes. Hayes plans to announce the
        appointment of the new President/CEO within the next few weeks.

        
            "With the quarterly results Hayes will release this week and the
        new $150 million target IPO, our turnaround is nearly complete and
        we are now on the fast track to becoming a public company," said
        Dennis Hayes. "As Chairman, I look forward to working with the Board
        and our strong management team, including the new President/CEO, Jim
        Jones, our new Chief Financial Officer, and Dr. Alan Clark, our
        Chief Technical Officer, all of whom have extensive experience as
        executives in high tech companies."

        
            Best known as the inventor of the PC modem, Hayes is recognized
        around the globe as a leader in technical innovations, computer
        communications standards, functional and feature-rich products, and
        superior support and service.  Founded in 1977, Hayes develops,
        manufactures, and markets value-based computer communications
        solutions for software, business, network and consumer market
        segments.  The company maintains an extensive global network of
        authorized distributors, dealers, mass merchants, VARs, system
        integrators and original equipment manufacturers.  Hayes customers
        include Fortune 1000 corporations, mid-size companies and corporate
        branch offices, small and home office businesses, on-line and
        telecommunications network providers, and millions of individual PC
        users around the globe.
   


        CONTACT:  Andrew Dod, Hayes Microcomputer Products, Inc.,
        770-840-9200, ext. 6365; fax, 770-441-1238; Internet Address:
        adod@hayes.com, or Hayes World Wide Site:http://www.hayes.com/" target=_new>http://www.hayes.com/">http://www.hayes.com/
        



EAGLE-PICHER INDUSTRIES FILES AMENDED
PLAN OF REORGANIZATION
        


            CINCINNATI, April 9, 1996 - href="chap11.epi.html">Eagle-Picher Industries (OTC:
        EPIHQ) today announced that a First Amended Consolidated Plan of
        Reorganization was filed with the U.S. Bankruptcy Court in
        Cincinnati, Ohio.  The amended plan and accompanying proposed
        Debtors' First Amended Joint Disclosure Statement was necessitated
        by the Court's response to a motion filed by the Company in July
        1995 requesting that the Bankruptcy Court estimate the Company's
        aggregate liability on account of present and future asbestos-
        related personal injury claims.

        
            The Company indicated that the most significant modification to
        the previous plan that was filed on February 28, 1995 as a result of
        the ruling is the reallocation of distributions under the plan to
        various categories of unsecured claims.  Under the former plan the
        estimated total amount of allowed pre-petition unsecured claims was
        approximately $1.657 billion.  Of this amount, $1.5 billion
        (approximately 91 percent) represented an agreed to settlement for
        present and future asbestos-related personal injury claims.  The
        remaining $157 million (approximately 9 percent) represented
        anticipated allowed amounts of environmental, other pre-petition
        unsecured claims and priority claims.

        
            As a result of the Court's ruling that the Company's asbestos
        liability is $2,502,511,000, the estimated total amount of allowed
        pre-petition unsecured claims increases to approximately
        $2,659,511,000, the percentage of cash, notes, and stock
        distributable to the asbestos claimants increases to 94 percent, and
        the share of such assets allocable to environmental, other pre-
        petition unsecured claims and priority claims falls to 6 percent.
        This is because the amount of those claims, approximately $157
        million, was not changed by the decision.

        
            Following the Court's estimation of the Company's aggregate
        liability on account of present and future asbestos-related personal
        injury claims at $2.5 billion, Eagle-Picher recorded an additional
        $1 billion writedown on its balance sheet.  This resulted in
        negative net worth in excess of $2 billion, indicating that
        sufficient value does not exist to allow equity security holders to
        participate in a plan of reorganization.  Accordingly, the Company
        filed a motion on December 18, 1995 asking the Bankruptcy Court to
        direct the United States Trustee to disband the Equity Security
        Holders' Committee.  On January 24, 1996, the Bankruptcy Court
        partially granted the motion by limiting the ongoing activities of
        the Equity Security Holders' Committee to the prosecution of its
        appeal of the Estimation Ruling.
   

     
        CONTACT:  J. Rodman Nall of Eagle-Picher, 513-721-7010