Bankruptcy News For - April 18, 1996

  1. B cities and agencies approve settlement with Orange County

B cities and agencies approve settlement with county

            LONG BEACH, Calif. -- April 18, 1996 -- Thirteen of
        14 Option B cities and agencies have approved a proposed settlement
        of the group's bankruptcy claims against Orange County and approval
        by the final agency is expected Friday, making Option B support for
        the settlement unanimous.

            "This is a win-win for everyone -- the Bs, the As and the
        county," said Patsy Marshall, mayor of Buena Park.  "Our goal from
        the beginning was to recover our rightful share of the bankruptcy
        proceeds.  I'm very pleased that we were able to reach a settlement
        that benefits all those involved."

            On Thursday, the Yorba Linda Water District became the 13th
        agency to approve the settlement.  The cities of Buena Park,
        Claremont, Milpitas, Montebello, Mountain View, Santa Barbara and
        Yorba Linda, the Buena Park, Montebello, Santa Barbara and Yorba
        Linda redevelopment agencies, and the Santiago County Water District
        all voted for the settlement on Monday or Tuesday.  

        The city of Atascadero is expected to approve the settlement Friday.

            "We support the B group and the thrust of the agreement but
        approved this in the hope that the county and its legal counsel will
        live up to their end of the bargain," Mike Beverage, president of
        the board of directors of the Yorba Linda Water District said
        Thursday after the board's vote.

            The proposed settlement provides for the Option B group to
        receive $7.5 million in cash, $8 million in warrants to be paid over
        10 years, and $9 million in secured claims paid from litigation
        proceeds.  The Option B group will be treated the same as Option A
        cities and agencies in receiving other bankruptcy-related funds.

            In exchange for the $24.5 million settlement from the county,
        the Option B group will drop its lawsuit against the county and vote
        for the county's Plan of Adjustment.

            "There's a strong possibility we would have received more money
        had we gone ahead with litigation," Marshall said.  "But our major
        concern was to reach an agreement and begin to put the bankruptcy
        behind us."

            The Option B group retains all its rights to sue Merrill Lynch
        and other third parties involved in the bankruptcy, a critical
        component in its members' decision to select the B option.

            When Orange County declared bankruptcy on Dec. 6, 1994, the
        Option B group had $187 million deposited in the county investment
        pool, about 2.5 percent of pool funds.  In the subsequent bankruptcy
        settlement, which was approved by the federal bankruptcy judge and
        the Orange County Board of Supervisors, all depositors ultimately
        were offered Option A or B.  

            The cities and agencies which chose B were paid slightly less
        but retained the right to pursue independent recovery efforts
        against the county and third parties.  

            The B participants received an average of 77 percent of their
        money but have been working to recover the rest -- at least $44

            "This settlement is a victory for the Bs," said John Gullixson,
        mayor of Yorba Linda.  "We continue to retain all our litigation
        rights and we collect 100 percent of the damages we win on our own
        in a court of law."

            Diann Ring, a Claremont councilmember, said the Option B group
        remains determined to recover as much as possible of taxpayer money.

            "But I'm glad this battle is over," Ring said.  "The fight with
        Orange County has taken far too much time and effort.  We all have
        other priorities to address in our communities."

        CONTACT:  Adler Public Affairs, 310/435-5551


            SALT LAKE CITY, April 18, 1996 - 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-

            The settlement is with Robert Pratt and provides for payment to
        Bonneville Pacific Corporation of the total sum of six hundred
        seventy- five thousand and no/100 dollars ($675,000.00).  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, Chapter 11 Trustee for Bonneville
        Pacific, 801-532-2666


             WORCESTER, Mass., April 18, 1996 - href="chap11.cambridge.html">Cambridge Biotech
today announced that it is now trading on the
        Counter (OTC) Bulletin Board under the symbol CBCXQ.  Cambridge
        Biotech had previously been trading unlisted under the symbol CBCXE.
        The listing of CBCXQ on the OTC Bulletin Board is an important step
        in establishing a more orderly market for the company's stock.

            Cambridge Biotech Corporation, which filed for protection under
        Chapter 11 of the United States Bankruptcy Code on July 7, 1994, and
        which filed a plan of reorganization with the bankruptcy court on
        April 10, 1996, is a therapeutics and diagnostics company focusing
        on infectious diseases 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 infections, 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, President and Chief Executive
        Officer of Cambridge Biotech Corporation, 508-797-5777, or Robert
        Gottlieb, Senior Vice-President of Feinstein Partners, Inc.,


            ST. LOUIS, April 18, 1996 - Edison
Brothers Stores Inc.

        (NYSE: EBS) reported a net loss for the fourth quarter 1995 of
        $106.6 million, or $4.83 per share. Special after-tax charges of
        $86.9 million were taken in the fourth quarter primarily related to
        store closings. Of those charges, $52.2 million represented the
        write-off of fixed assets and intangibles and other noncash charges,
        $25.5 million were in connection with future lease termination
        payments that are subject to settlement under bankruptcy
        proceedings, and $9.2 million were primarily associated with
        reorganization expenses.  Without the special charges, the net loss
        for the fourth quarter 1995 was $19.7 million. This compares with a
        net profit of $3.2 million, excluding the after-tax benefit of $14.0
        million resulting from the recovery of certain customs duties
        previously paid, for the fourth quarter 1994.

            Edison's liquidity has improved significantly since it filed for
        voluntary reorganization under Chapter 11 on Nov. 3, 1995.  The
        company's cash balance increased to $139.6 million at the end of the
        fourth quarter 1995 from $27.0 million at year-end 1994.  In
        addition, the company received a $37.6 million tax refund in
        February 1996 and currently has approximately $155 million in cash.
        The company generally does not expect to borrow under its $200
        million debtor-in-possession (DIP) financing in order to finance
        operations in 1996.

            For the 53 weeks ended Feb. 3, 1996, the company reported a net
        loss of $222.0 million, or $10.06 per share, compared with net
        income of $20.5 million, or 93 cents per share, for the 52 weeks
        ended Jan. 28, 1995. The net loss for 1995 included special after-
        tax charges amounting to $158.1 million, including store closing
        reserves, loss on the sale of the entertainment division,
        accelerated amortization of the goodwill of Zeidler & Zeidler, and
        reorganization expenses.

            As previously reported, Edison's total sales for 1995 were $1.39
        billion, down 5.9 percent from 1994 sales of $1.48 billion.  Total
        fourth quarter sales were $416.8 million in 1995, compared with
        sales of $445.1 million in the fourth quarter 1994.

            "We have successfully completed the short-term strategic
        initiatives we announced in third quarter by closing approximately
        500 unprofitable stores, selling the company's entertainment
        division, closing the distribution center in Rome, Ga., and
        significantly reducing Edison's store presence in Mexico," Edison
        President Alan Miller said. "These actions have given us the
        opportunity to pursue longer-range objectives that are needed to
        improve the company's results. We have a long way to go before
        Edison is restored as a leader in the specialty retail business, but
        we are committed to making the changes necessary to succeed in the
        highly competitive retail environment in which we do business

            Edison Brothers Stores Inc. operates approximately 2,000 apparel
        and footwear stores under the names of JW/Jeans West, Coda, Oaktree,
        J. Riggings, Zeidler & Zeidler and REPP Ltd menswear stores and
        Phoenix men's big-and-tall catalog; 5-7-9 Shops junior apparel
        stores; and Bakers/Leeds, Precis and Wild Pair footwear stores.

                            14 Weeks      13 Weeks     53 Weeks     52 Weeks
                               Ended         Ended        Ended       Ended
                             Feb. 3,       Jan. 28,     Feb. 3,     Jan. 28,
                               1996           1995        1996         1995
                                 (In millions, except per share data)
        Net Sales           $ 416.8      $ 445.1     $1,389.4     $1,476.4
        Cost of goods sold,
         occupancy and buying
          expenses            323.8        320.8      1,033.3      1,017.4
        Store operating and
          expenses             93.0         97.2        352.1        360.3
        Depreciation and
         amortization          13.8         17.1         62.8         69.6
        Interest expense,
          net                   2.4          5.0         25.2         19.0
        Restructuring and
          expenses             97.8                     167.1
        Other operating       (22.3)                    (22.3)
            Total             530.8        417.8      1,640.5      1,444.0
        Income (Loss) before
         income taxes        (114.0)        27.3       (251.1)        32.4
        Income tax provision
         (benefit)             (7.4)        10.1        (29.1)        11.9
        Net Income (Loss)   $(106.6)     $  17.2     $ (222.0)   $    20.5
        Per Common Share:
          Net Income (Loss) $ (4.83)     $   .78     $ (10.06)   $     .93
          Cash dividends
           paid                  --      $   .31     $    .42    $    1.24
        Weighted average
         common shares
          (in thousands)     22,087       22,022       22,070       22,007

        CONTACT:  David B. Cooper, Jr., CFO, 314-331-6531, Amy Calvin,
        Communications, 314-331-7996, both of Edison Brothers


            LA CROSSE, Wis., April 18, 1996 - LaCrosse Footwear, Inc.
        (Nasdaq-NNM: BOOT) today announced that it has entered into a letter
        of intent with Red Ball, Inc., a
subsidiary of Norcross Footwear
        Inc., Louisville, Ky., under which LaCrosse Footwear, Inc. will
        purchase substantially all of the assets of Red Ball, Inc. for cash.

            Consummation of the sale is subject to execution of a definitive
        purchase agreement, which will contain customary closing conditions.
        Red Ball, Inc. is currently operating under the protection of
        Chapter 11 of the federal bankruptcy code and the proposed
        transaction is subject to the approval and overbidding procedure of
        the bankruptcy court. LaCrosse Footwear, Inc., and Red Ball, Inc.
        are working on a definitive purchase agreement with a contemplated
        closing date of mid-May 1996.

            Red Ball, Inc. is a leading designer, manufacturer and marketer
        of branded outdoor sporting and protective footwear, sold primarily
        under the Red Ball(R) brand, used in hunting, fishing and other
        outdoor activities.  The Company's product offerings include hip
        boots, rubber bottom/leather top pac boots and appropriate
        accessories, totaling approximately $16.9 million in revenues in
        1995.  In addition, the Company has developed a line of children's
        protective footwear, under the Red Ball Jets(R) brand with 1995
        revenues of $5.8 million.  Revenues in 1996 will be well below the
        1995 level due to the temporary effects of the bankruptcy.

            According to Patrick K. Gantert, LaCrosse Footwear, Inc.,
        President and CEO, "The acquisition of Red Ball Inc. is an important
        step in the continued growth of LaCrosse Footwear, Inc.  The Red
        Ball line of waders and hip boots will effectively complement the
        existing LaCrosse(R) line and the Red Ball distribution goes beyond
        the LaCrosse customer base by including a number of the leading mass
        merchants.  The distribution focus of the LaCrosse brand, however,
        will continue on our existing base of independent retailers.
        Further, the Red Ball Jets brand in children's protective footwear
        is well established and should allow for the continued profitable
        growth in children's products under both the LaCrosse and Red Ball

            LaCrosse Footwear designs, manufacturers and markets premium
        quality rubber, leather and vinyl footwear for the sporting and
        outdoor, farm and general utility, occupational and children's
        markets under the LaCrosse and Danner(R) brands and for private
        label customers.

        CONTACT:  Robert J. Sullivan, Vice President-Finance of
        LaCrosse Footwear, Inc., 608-782-3020