The following is an announcement of a securities fraud class action
lawsuit brought by Bernstein Litowitz Berger & Grossmann LLP and the
Law Offices of Bernard M. Gross, P.C. on behalf of investors in The
Bennett Funding Group.
You are hereby notified that a securities fraud class action has
been commenced in the United States District Court for the Southern
District of New York by plaintiff David J. Stern and other
plaintiffs who have a significant investment interest in Bennett
Funding Group ("Bennett" or the "Company"). The action has been
brought on behalf of all persons who purchased Bennett "leases",
"contracts", and/or "notes" (collectively, the "Securities") during
the period January 1, 1991 to March 29, 1996 (the "Class Period").
The named plaintiffs, collectively, invested more than $3.5 million
in those Securities.
The Complaint, which sets forth claims under the federal
securities laws and common law fraud, alleges that defendants
(officers and directors of Bennett) issued materially false and
misleading statements during the Class Period which portrayed
Bennett as a full service equipment leasing and finance company
which had enjoyed tremendous growth and financial success. The
Complaint alleges that, in fact, these results were achieved through
a "Ponzi" scheme being operated by defendants and the companies they
controlled. Thus, Bennett sold the Securities to the investing
public without disclosing that, among other things: defendants were
selling leases that did not exist; where leases did exist, the same
lease was being "sold" to more than one investor; millions of
dollars were improperly funneled to persons and entities related to
Bennett; and, payments to investors in the "fictitious" leases were
dependent on defendants' ability to continue raising funds from
other sources and additional investors.
As a result of defendants' scheme to defraud, purchasers of
Bennett Securities invested in either non-existent securities or in
securities worth far less than represented and, therefore, have
suffered considerable losses. In their action, plaintiffs seek to
recover losses suffered by the Class as a result of the defendants'
On March 29, 1996, the Securities and Exchange Commission filed
suit against Bennett claiming that the company had engaged in the
Ponzi scheme described above. Additionally, the Manhattan U.S.
Attorney has charged defendant Patrick Bennett with criminal
securities fraud and perjury. On March 29, 1996, Bennett filed for
protection under the bankruptcy laws and, thus, due to legal
prohibitions regarding suit against a bankrupt entity, is not a
defendant in the class action.
If you are a member of the Class described above who invested in
or purchased Bennett leases, contracts or notes between Jan. 1, 1991
and March 29, 1996 you may, not later than 60 days from today, move
the Court to serve as lead plaintiff of the Class, if you so choose.
In order to serve as lead plaintiff, however, you must meet certain
Plaintiffs are represented by the law firms of Bernstein
Litowitz Berger & Grossmann LLP and the Law Offices of Bernard M.
Gross, P.C., which have extensive experience in prosecuting class
actions on behalf of defrauded investors nationwide. If you wish to
discuss this Action or have any questions concerning this notice or
your rights or interests, please contact Vincent R. Cappucci, a
partner in Bernstein Litowitz Berger & Grossmann LLP at 212/554-
1409, by Bloomberg E-Mail to Mr. Cappucci or on the Internet at
BLBG@BLBGLAW.COM or Deborah R. Gross, a partner in the Law Offices
of Bernard M. Gross, P.C. at 1-800-258-9349.
CONTACT: Bernstein Litowitz Berger & Grossmann LLP
Vincent R. Cappucci, 212/554-1409
Bernard M. Gross, P.C.
Deborah R. Gross, 1-800-258-9349
DALLAS, TX -- April 19, 1996 -- The Cajun Electric
Members Committee, Southwestern Electric Power Company (SWEPCO) and
Gulf States Utilities Company (GSU) today filed a reorganization
plan for Cajun Electric Power
Cooperative, Inc., in the U.S.
Bankruptcy Court for the Middle District of Louisiana (Case No. 94-
Under the plan, wholesale rates to the member distribution
cooperatives that buy power from Cajun would be reduced from 4.88
cents per kilowatt- hour to a proposed 3.74 cents per kilowatt-hour.
That, in turn, would allow the cooperatives to reduce retail rates
to residential customers by 20 to 25 percent. The Louisiana
cooperatives serve a population of more than 1 million people.
Also under the plan, Cajun's creditors would receive a total
value in excess of $1.2 billion. That includes $405 million in cash
from SWEPCO to purchase the Big Cajun II coal-fired power plant, Big
Cajun I gas-fired power plant and related non-nuclear assets. It
also includes approximately $500 million or more in net present
value from future payments the member cooperatives would make to the
federal government's Rural Utilities Service (RUS), Cajun's largest
creditor, using a portion of the cooperatives' future income from
their retail customers. The remaining value comes from existing
liquid assets and a ratepayer trust fund that was established as
part of the bankruptcy procedure.
Finally, the plan resolves the complex legal and financial
issues resulting from Cajun's investment in the River Bend nuclear
power generating plant. It gives the RUS a choice of auctioning
Cajun's 30 percent ownership interest in River Bend to the highest
bidder, acquiring the ownership interest itself, or conveying the
ownership at no cost to GSU, which owns the other 70 percent of the
plant. In each case, the plan provides for full funding of
"The key to this plan is that it provides competitive wholesale
rates to the Cajun member cooperatives, which serve more than 1
million Louisiana residents, while maximizing value to the Cajun
estate," said David Kleiman, attorney for the members committee,
which consists of 10 of the 12 distribution cooperatives served by
Cajun. "It's important to provide the creditors with fair
compensation, and this plan certainly does that. But from the
members' standpoint, it also means that for the first time in 15
years, the cooperatives in Louisiana will have rates that are
competitive, and they will be able to see the kind of growth and
development the rural areas of the state deserve."
Noting the bankruptcy of one cooperative, the sale of another,
the pending sale of still another and the financial difficulties of
all cooperatives in the state, Kleiman said other proposals may
provide more value to the estate, but that means higher,
uncompetitive rates for the cooperatives and their customers. "That
is not acceptable to the members committee. The joint proposal of
the members, SWEPCO and GSU provides a permanent solution to these
long-standing problems," he said.
The court-appointed trustee for Cajun has indicated he will
submit a plan based on a competing proposal.
SWEPCO President and Chief Executive Officer Richard H. Bremer
said the comprehensive nature of the members/SWEPCO/GSU plan makes
it a winner. "We also feel it can be supported by the Louisiana
Public Service Commission. The Commission has been a strong
proponent of competitive rates for the cooperatives, and we
appreciate the encouragement from the Commission for the direction
we've taken with this joint proposal. We are committed to providing
competitive wholesale rates, and we look forward to providing the
information the Commission needs from us to evaluate the Cajun
proposals and conduct its regulatory approval process," Bremer
GSU President Frank Gallaher said, "This plan provides for
resolution of various legal and regulatory matters involving GSU and
Cajun. The resolution of these cases would be a major step forward
and a positive feature of the plan."
SWEPCO is a wholly owned electric subsidiary of Central and
South West Corporation (NYSE: CSR). GSU is a wholly owned
subsidiary of Entergy Corporation (NYSE: ETR).
CONTACT: Dann Pecar Newman & Kleiman (Indianapolis)
for the Cajun Electric Members Committee
David Kleiman, 317/632-3232
Southwestern Electric Power Company
Scott McCloud or Peter Main, 318/673-3532
Central and South West Corporation
Gerald Hunter, 214/777-1165
Gulf States Utilities Company/Entergy Corporation
Cyril Guerrera, 504/576-4238
SOUTHFIELD, Mich., April 19, 1996 - Questor Partners
Fund, L.P., announced today that it is making a tender offer for up
to 44 percent of the common shares of href="chap11.anacomp.html">Anacomp, Inc., Atlanta, Ga.,
to be issued when Anacomp emerges from bankruptcy proceedings next
Questor's offer, at $7.75 per share, is for up to 4.4 million of
those shares that will be issued to Anacomp debtholders after
approval of its reorganization plan. Under the plan, all presently
outstanding Anacomp stock will be cancelled. Consummation of the
reorganization is expected in late May.
Anacomp, which sought Chapter 11 bankruptcy protection in
January 1996, is the world's leading full-service provider of
micrographics for data storage. The company, which operates 45 data
service centers nationwide, had fiscal 1995 revenues of $591
Questor Management Company, headquartered in Southfield, manages
Questor Partners Fund, which was created to acquire and turn around
underperforming companies. The fund's principals are private
investors Dan W. Lufkin, co-founder of Donaldson, Lufkin & Jenrette
(DLJ); Melvyn N. Klein, a merchant banker, attorney and former
senior executive of DLJ; Edward L. Scarff, former president of
Transamerica Corporation; and Jay Alix, founder and a principal of
Jay Alix & Associates, a nationally recognized firm of corporate
turnaround managers and restructuring advisors.
CONTACT: Harry Savage of Robert Marston Corporate Communications,
DENVER and RICHARDSON, Texas, April 19, 1996 -- Ascent
Entertainment Group (Nasdaq: GOAL) and href="chap11.spectra.html">SpectraVision Inc. (AMEX:
SVN) announced today that their boards have approved a transaction
in which Ascent would acquire the assets of SpectraVision, which is
currently operating in bankruptcy. SpectraVision's creditors'
committee has also approved the transaction.
Ascent intends to combine its 85 percent owned subsidiary, On
Command Video Corporation, with SpectraVision's assets and certain
of its liabilities, to form a new company which will be 72.5 percent-
owned by Ascent and current minority shareholders of On Command
Video. The new company, expected to be named On Command Video,
would provide pay- per-view entertainment and information services
to approximately one million hotel rooms worldwide.
The SpectraVision bankruptcy estate will receive 27.5 percent of
the new company's stock, which will be distributed through a
bankruptcy plan to SpectraVision's creditors to resolve claims of
approximately $600 million. The new company will also issue
warrants to be distributed by Ascent to purchase 13 percent of the
new company's common stock and warrants to SpectraVision's estate to
purchase another 7 percent of the stock.
"The combined company will be a dynamic competitor in the fast
growing and profitable media distribution and information services
business," said Charlie Lyons, president and chief executive officer
of Ascent Entertainment Group. "It will have the resources to
deliver high quality product where and when customers want it."
"The merger with On Command Video enables SpectraVision to
maximize the recovery for our creditors and emerge from Chapter 11
as part of a new company with the financial strength to compete
effectively in the worldwide entertainment and information services
market," said Gary Welk, chairman and chief executive officer of
SpectraVision. "All of us in the SpectraVision family can feel
proud about being part of this new company."
The transaction is subject to bankruptcy court approval, Hart-
Scott- Rodino clearance and other conditions. Shares of the new On
Command Video are expected to be publicly traded upon completion of
the transaction, which is expected by the end of the third quarter
Ascent and On Command Video have been advised in the transaction
by Gary Wilson Partners and by Allen & Company, Incorporated.
SpectraVision has been advised by Salomon Brothers, Inc.
Ascent Entertainment Group's principal business is providing
pay- per-view entertainment and information services. In addition,
it is involved in other entertainment-related businesses including
ownership and operation of the NBA Denver Nuggets and NHL Colorado
Avalanche, and Beacon Communications, a motion picture and
television production company.
At March 31, 1996, On Command Video served approximately 386,000
hotel rooms and had a backlog of approximately 106,000 rooms.
SpectraVision Inc., which filed for bankruptcy in June 1995,
supplies in-room, pay-per-view entertainment and information
services to the worldwide lodging industry and serves customers in
the U.S., Canada, Mexico, the Caribbean, Australia and the Pacific
Rim. As of March 31, 1996, SpectraVision served approximately
CONTACT: Media: Paul Jacobson, 303-572-0381, or George Sard, or
Paul Verbinnen, or Karen Amrhine, 212-687-8080; or Investors: Denny
Minami, 301-214-3632, all for Ascent Entertainment; or Media:
Robert Mead, 212-484-6701, or Investors: Dick Gozia, 214-301-9066, both
SALT LAKE CITY, April 19, 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.
The settlement is with L. Wynn Johnson who at various times was
President, a Director and Managing Director of Bonneville Pacific
The Settlement provides for payment to Bonneville Pacific
Corporation of the total sum of one million six hundred fifty
thousand and no/100 dollars ($1,650,000.00) payable over a period of
two years, plus other consideration. Mr. Johnson has also agreed to
meet with the Trustee and his counsel in order to disclose his
knowledge about all matters related to Bonneville Pacific
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
RICHMOND, Va., April 19, 1996 - href="chap11.consumat.html">Consumat Systems, Inc.
(Nasdaq: RCMS), announced today its financial results for the
quarter ended March 31, 1996. The Company reported net income for
the quarter of $127,067 or $.13 per share on revenues of $1,284,178.
The Company reported income from operations of $78,623 and
additional income of $48,444 from a contract cancellation fee. The
Company's operating results reflect approximately $25,000 in added
costs associated with the Company's reorganization.
As previously reported the Company filed for protection under
Chapter 11 of the United States Bankruptcy Code in October 1995, had
its Plan of Reorganization confirmed by the Court in February, 1996,
and the Plan became effective on March 12, 1996.
As part of the reorganization of the Company, new stock
certificates were issued to all shareholders of record as of March
12, 1996, and the Company's symbol on the Nasdaq Bulletin Board was
changed to "RCMS".
In addition, the Company announced today that Robert L. Massey
has been elected to the position of Chairman and will continue to
serve as President and CEO. Also, the Company announced that Robert
S. Lee has been elected as Vice President.
Consumat Systems is the Richmond, Va. based Company which
designs and manufactures incineration and air pollution control
CONTACT: Robert L. Massey or Mark E. Hills, Consumat Systems,