TCR_Public/960410.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 10, 1996



  1. MODEL IMPERIAL REPORTS FORBEARANCE AGREEMENT AND DELISTING FROM NASDAQ
  2. AQUILA BIOPHARMACEUTICALS TO BE FORMED BY REORGANIZATION OF CAMBRIDGE BIOTECH




MODEL IMPERIAL REPORTS FORBEARANCE AGREEMENT AND DELISTING FROM THE
        NASDAQ NATIONAL MARKET SYSTEM

        
            BOCA RATON, Fla., April 10, 1996 - Model Imperial, Inc.
        (Nasdaq: MODL) today announced that it has finalized and executed a
        forbearance agreement with its bank lenders, to which it presently
        owes approximately $45 million.  As set forth in the agreement, the
        Company acknowledges that it is in default under its loans and the
        bank lenders 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 is 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, is subject to various
        conditions, including compliance with the operating budget.  In
        connection with the agreement, the Company's Chief Executive Officer
        and majority shareholder, Harold M. Ickovics, has made an unsecured
        loan for $1 million to Model Imperial Fine Fragrances, Inc., the
        Company's primary operating subsidiary, and the Company is allowed
        to liquidate certain excess inventory.

        
            The Company also announced that it has been informed by Nasdaq
        that as a result of the failure of the Company to meet certain
        Nasdaq National Market continued listing criteria, effective today,
        April 10, 1996, the Company's common stock, par value $.0l per
        share, will be delisted from the Nasdaq National Market.  Following
        such delisting, the Company's common stock will be listed on the OTC-
        Bulletin Board. Although no assurances can be given as to the
        results, the Company plans to request by April 19, 1996, in
        accordance with the provisions of the Nasdaq Code of Procedures,
        that a Nasdaq Hearing Review Committee review the delisting decision
        of the Nasdaq Listing Qualifications Committee.

        
            Additionally, the Company announced that Leonard Silverstein has
        been appointed as Chief Financial Officer of the Company.
   

     
            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, Chief Financial Officer of Model
        Imperial, Inc., 407-241-8244



AQUILA BIOPHARMACEUTICALS, INC.
TO BE FORMED BY REORGANIZATION OF
        CAMBRIDGE BIOTECH CORPORATION; FOCUS ON INFECTIOUS DISEASES AND
        CANCER
        


            WORCESTER, MA, April 10, 1996 - href="chap11.cambridge.html">Cambridge Biotech
        Corporation
(CBC) announced today that it has filed a plan of
        reorganization under Chapter 11 of the U.S. Bankruptcy Code.  The
        proposed reorganization plan will establish a new company, Aquila
        Biopharmaceuticals, Inc., engaged in the development and
        commercialization of products which stimulate the immune system for
        treating infectious diseases and cancer.  The disclosure statement
        describing the plan is subject to approval by the Bankruptcy Court.
        The plan also requires approval of creditors and shareholders and
        confirmation by the court.
        


            "Following the reorganization, Aquila will move forward with a
        strong portfolio of products in development, vaccine manufacturing
        expertise and an extensive network of corporate licensees and
        academic collaborators," said Alison Taunton-Rigby, Ph.D., President
        and CEO of Cambridge Biotech.  "The reorganization plan also
        includes a rights offering, which provides an opportunity to access
        additional capital."

        
            "Aquila will focus on advancing the development of our
        Stimulon(TM) adjuvants, led by QS-21, and our proprietary vaccines
        for tick-borne diseases, streptococcal infections and malaria, and
        in the animal health area, vaccines for canine Lyme disease and
        bovine mastitis," Dr. Taunton-Rigby said.  "QS-21, the company's
        lead adjuvant for enhancing the immune response to antigens, is
        currently being evaluated in a broad range of clinical trials and
        preclinical studies through corporate and academic collaborators."
   

     
            Clinical trials involving QS-21 in combination with antigens for
        influenza, herpes simplex, HIV-1, hepatitis B and melanoma have been
        completed.  Ongoing clinical studies include pivotal trials of an
        immunotherapeutic for melanoma; studies of vaccines for influenza,
        hepatitis B, herpes simplex, a respiratory virus, malaria and HIV-1;
        and immunotherapeutics for colon cancer, breast cancer, melanoma and
        B-cell lymphoma.  The company's Stimulon licensees include
        SmithKline Beecham p.l.c., Pasteur Merieux Serums & Vaccins, Wyeth-
        Lederle Vaccines and Pediatrics, Genentech, Inc., NABI and Progenics
        Pharmaceuticals, Inc.

        
            Aquila's proprietary programs include a vaccine designed to
        prevent streptococcal infections in the elderly, a combination
        vaccine designed to protect against human Lyme disease and human
        granulocytic ehrlichiosis (HGE), a recently identified disease which
        has emerged as a significant public health concern, and a vaccine
        for malaria with the World Health Organization (WHO).  In the animal
        vaccine field, Aquila has a feline leukemia vaccine on the market, a
        canine Lyme vaccine in field safety studies and a bovine mastitis
        vaccine in early field studies.

        
            Submission of the reorganization plan follows the previously
        announced agreement to sell Cambridge Biotech's retroviral
        diagnostics business to bioMerieux Vitek, Inc., for $6.5 million
        cash, and district court approval of a settlement agreement relating
        to a shareholder class action suit filed against the company and
        several of its former officers.  The company is also negotiating the
        sale to a separate buyer of its remaining diagnostic business,
        principally tests for enterological diseases.
   

     
            Under the proposed reorganization plan, which remains subject to
        further discussions with the official committees appointed in the
        Chapter 11 case to represent the interests of creditors and existing
        shareholders, CBC will transfer to Aquila all of its assets,
        liabilities and intellectual property except for the retroviral
        assets.  CBC will then be sold to bioMerieux.
      

  
            Aquila will be capitalized initially with 5 million shares of
        common stock.  CBC shareholders, as of a record date to be
        established under the reorganization plan by the bankruptcy court,
        will be issued Aquila shares exchanged through a reverse split of
        one share of Aquila common stock for approximately 8 shares of CBC
        (the exact ratio being dependent upon the number of shares required
        to settle creditor claims).  The reorganization plan calls for a
        cash settlement to unsecured creditors owed less than $3,000 and for
        other unsecured creditors to receive common stock based on the
        reorganization value of Aquila.  The settlement agreement relating
        to the shareholder class action suit calls for the settlement class
        to receive 1.25 million shares of Aquila common stock representing
        25 percent of the equity of Aquila.  In addition, Aquila shares
        valued at about $1 million will be distributed to employees under a
        court approved incentive plan to retain key employees during the
        Chapter 11 reorganization.

        
            Aquila also plans to offer rights to shareholders and creditors
        to purchase units consisting of one share of Aquila common stock and
        a three year warrant to purchase one additional share of Aquila
        common stock.  The rights, which are transferable, will be
        exercisable after consummation of the reorganization plan, although
        the final terms and conditions of the rights offering remain to be
        established.

        
            A disclosure statement describing the proposed reorganization in
        detail  will be distributed to shareholders, creditors and other
        interested parties once approved by the Bankruptcy Court.  A hearing
        to approve the disclosure statement is expected to be scheduled in
        the near future.
   

     
            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 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 virus currently on the market and
        vaccines in development in the areas of tick-borne diseases,
        streptococcal infections, bovine mastitis and canine Lyme disease.
        Cambridge Biotech's diagnostic business is primarily focused on
        retroviral, Lyme and enteric diseases.

        
        CONTACT: Alison Taunton-Rigby, President & Chief Executive Officer
        of Cambridge Biotech, 508-797-5777, or Robert Gottlieb, Senior Vice
        President of Feinstein Partners, 617-577-8110