Bankruptcy News For - April 25, 1996

  2. Rockefeller Center Properties extends merger closing deadline


            LARGO, Fla., April 25, 1996 - href="chap11.fountain.html">Fountain Pharmaceuticals,
(OTC Bulletin Board: FPHI) announced today that revenues for
        the quarter ended March 31, 1996, were $569,000, 22% higher than the
        same quarter of the prior year, and that net income from operations
        was $99,000, a 40% increase over the prior year's comparable period.
        For the six months ended March 31, 1996, sales were $612,000, a 6%
        decrease over the prior year's comparable period, and net losses on
        operations were $28,000 versus an operating income of $62,000 in the
        prior year's six month period.  After accounting for a one-time gain
        related to the Company's recently concluded Chapter 11 process, net
        income was $271,000 for the first six months.   The Company noted,
        however, that similar gains were recorded at the end of the fiscal
        year September 1995, and therefore, there eventually will be no
        materially favorable effect on year-to-year comparisons resulting
        from this gain.

            The Company's C.E.O., Mr. John C. Walsh, said that the quarterly
        operating results were as expected and that orders from licensees
        for the upcoming quarter were well ahead of the prior year.  With
        regard to the company's recently announced agreement with Dermik
        Laboratories, a subsidiary of Rhone-Poulenc Rorer Corporation, he
        indicated that production site selections were continuing and that
        these efforts would delay product introductions in certain markets,
        including the United States.  On the other hand, he noted,
        introductions in certain other markets were on or ahead of earlier
        schedules, and also that the delayed introductions would have
        minimal effect over the long term of the agreement.

            Fountain Pharmaceuticals, Inc. is a publicly traded company
        based in Largo, Florida, that specializes in the application of
        encapsulated delivery systems for the pharmaceutical and cosmetic
        industries.  The company's shares are traded in the "OTC-Bulletin

        CONTACT:  John C. Walsh, CEO, Fountain Pharmaceuticals, Inc.,

Rockefeller Center Properties extends
outside date for merger closing to May 31, 1996

           NEW YORK -- April 25, 1996 -- href="chap11.rcp.html">Rockefeller Center
        Properties, Inc.
(RCPI) announced today that it had agreed
with the
        Goldman Sachs-led Investor Group to extend the outside date for the
        closing of the $8 per share merger approved by RCPI's stockholders
        in March from April 30 to May 31, 1996.

            As part of the extension agreement, Goldman Sachs Mortgage
        Company has agreed to make an additional $1.7 million loan to RCPI
        to cover its cash needs in May.  At the time of the stockholder vote
        approving the Merger Agreement, the parties expected that the
        Chapter 11 Reorganization Plan for the owners of Rockefeller Center
        would be negotiated and confirmed in time to permit a closing of the
        Merger by April 30, 1996.  It has not been possible to meet this
        schedule but RCPI has been informed by the Investor Group that it
        expects that the Chapter 11 Reorganization Plan will be confirmed
        and the Merger will be consummated by late May.

            RCPI is a mortgage real estate investment trust whose principal
        asset is a $1.3 billion participating convertible mortgage loan to
        the owners of Rockefeller Center (collectively, "the Borrower").
        The Borrower is 100% controlled by Rockefeller Group, Inc. (RGI).
        Mitsubishi Estate Company, Ltd. controls an 80% equity interest in
        RGI and Rockefeller Family Interests hold the remaining 20%.  On May
        11, 1995, the Borrower commenced cases under Chapter 11 of the
        federal bankruptcy law in the United States Bankruptcy Court for the
        Southern District of New York.

            RCPI is listed on the New York Stock Exchange as "RCP".  As of
        April 24, 1996, there were 38,260,704 shares of common stock

        CONTACT: Rockefeller Center Properties, Inc.
                 Stephanie Leggett Young, 212/698-1440
                 Robinson Lerer Sawyer Miller
                 Gary Holmes, 212/484-7736  


            CHATTANOOGA, Tenn., April 25, 1996 - href="chap11.krystal.html">The Krystal Company
        (Nasdaq-NNM: KRYSQ), an operator and franchisor of quick-service
        hamburger restaurants, today reported a first quarter loss for the
        quarter ended March 31, 1996, of $746,000, or 10 cents per share
        versus first quarter 1995 net income of $327,000, or four cents per
        share.  A significant portion of the current quarter's loss was
        attributable to administrative costs associated with the Company's
        Chapter 11 bankruptcy proceeding, which was initiated on December
        15, 1995.  These costs were $967,000 on a pretax basis and $600,000
        on an after tax basis, or eight cents per share.  Without these
        costs, the Company would have reported a net loss of $146,000, or
        two cents per share.  Bad weather, particularly in January 1996,
        contributed to soft sales in the first quarter of 1996 compared to
        the same period in 1995.  The Company estimates that bad weather
        reduced earnings per share between two and four cents for the

            Total revenues for the quarter were $57.7 million, down
        approximately 0.9% from the previous year.  Restaurant sales were
        down 0.3% to $55.9 million.

            Company-owned same restaurant sales for the quarter were down
        1.4% versus the same period in 1995.  The Company had 254
        restaurants open at the end of the first quarters of 1996 and 1995.

            The Company opened no new restaurants in the first quarter of
        1996 versus three in the first quarter of 1995.  Franchisees opened
        one new restaurant in the first quarter compared to two in the first
        quarter of 1995.

            First quarter revenues included franchise fees and royalties of
        $651,000 compared with $577,000 in the first quarter of 1995, an
        increase of 12.8%.  Krystal began franchising in late 1990 and had
        80 franchised restaurants in operation at the end of the first
        quarter of 1996 compared to 65 at the end of the first quarter of
        1995.  Sales by franchisees were $13.6 million for the first
        quarter, up 19.9% over the same period in 1995.

            The Company filed a voluntary petition under Chapter 11 of the
        United States Bankruptcy Code for the purpose of completely and
        finally resolving various claims filed against the Company by
        current and former employees alleging violations of the Fair Labor
        Standards Act.  The Company is a debtor-in-possession for purposes
        of the bankruptcy case. Currently, approximately 7,600 current or
        former employees have filed claims, mostly in unspecified amounts,
        alleging that they worked time for which they were not compensated.
        The Company expects to contest any claims which it believes to be
        invalid.  The Bankruptcy Court has established June 6, 1996, as the
        bar date by which all claimants must file their claims or have them
        forever barred.  The Company will file a proposed Chapter 11 Plan as
        soon as practicable thereafter.  Four previously disclosed lawsuits
        filed against the Company under the FLSA have been stayed by the
        bankruptcy filing.  Company management currently believes that the
        reserve previously established with respect to the FLSA claims is
        adequate to resolve these claims.  However, due to the uncertainty
        surrounding the ultimate number and amount of employee claims,
        additional reserves may be required in the near term.  The Company
        is recording the known administrative costs of the Chapter 11
        proceeding as they are determined.

            The Krystal Company operates 252 restaurants in Alabama,
        Arkansas, Florida, Georgia, Kentucky, Mississippi, South Carolina
        and Tennessee. Krystal franchisees operate 81 restaurants located in
        Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,
        Mississippi, North Carolina, South Carolina, Tennessee, and

            Founded in 1932, Krystal is one of the oldest fast-food chains
        in the United States.  The Krystal Company's common stock is traded
        on the Nasdaq National Market System under the symbol KRYSQ.

                              First Quarter
                           1996           1995
        Revenues                                $57,667,000  $58,196,000
        Net income (loss) before the effect of
         reorganization item(a)                 $  (146,000) $   327,000
        Net income (loss)                       $  (746,000) $   327,000
        Average Shares                            7,522,000    7,510,000
        Net income (loss) per share before
         the effect of reorganization(a) item   $      (.02) $       .04
        Net income (loss) per share             $      (.10) $       .04
            (a) Reorganization item represents administrative costs incurred
        in connection with Chapter 11 proceeding.
                            Consolidated Balance Sheets
                                  (In thousands)
                                                        3/31/96    12/31/95
           ASSETS                                     (Unaudited)  (Audited)
           Current Assets:
        Cash and temporary investments               $ 17,013   $ 13,713
        Receivables                                     1,556      1,752
        Income tax receivables                          1,106        609
        Net investment in direct financing leases -
         current portion                                  838        856
        Inventories                                     1,923      2,322
        Deferred tax asset                              5,553      5,553
        Prepayments and other                             607        830
        Total current assets                           28,596     25,635
        Net investment in direct financing leases,
         excluding current portion                        678        867
        Property, buildings and equipment, net         96,265     98,546
        Leased properties, net                          1,809      1,863
           Other assets:
        Cash surrender value of life insurance          5,224      5,117
        Other                                             649        667
        Total other assets                              5,873      5,784
        Total assets                                 $133,221   $132,695
           Current Liabilities:
        Accounts payable                             $  3,469   $  1,681
        Accrued liabilities                            11,425      9,427
        Current portion of long-term debt                 653        432
        Current portion of capital lease obligations      637        653
        Total current liabilities                      16,184     12,193
        Liabilities subject to compromise              54,319     56,909
        Long-term debt, excluding current portion       3,383      3,621
        Capital lease obligations, excluding current
         portion                                        2,601      2,754
        Deferred income taxes                           2,719      2,719
        Other long-term liabilities                     8,023      7,852
           Shareholders' equity:
        Preferred stock, without par value; 5,000,000
         shares authorized; no shares issued or
         outstanding                                      ---        ---
        Common stock, without par value; 15,000,000
         shares authorized; shares issued and
         outstanding, 7,514,808 at March 31, 1996,
         and 7,526,808 at Dec. 31, 1995                40,738     40,830
        Retained earnings                               7,449      8,195
        Deferred compensation                          (2,195)    (2,378)
        Total shareholders' equity                     45,992     46,647
        Total liabilities and shareholders' equity   $133,221   $132,695
        NOTE:  This is not a complete set of financial statements.
                      Consolidated Statements of Operations
                      (In thousands, except per share data)
                                                      3 mos. ended
                                                    3/31/96   4/2/95
        Restaurant sales                            $55,876  $56,040
        Franchise fees                                   33       65
        Royalties                                       618      512
        Other revenue                                 1,140    1,579
        Total                                        57,667   58,196
           Costs and expenses:
        Cost of restaurant sales                     46,769   46,668
        Depreciation and amortization expense         2,802    2,950
        General and administrative expenses           6,440    6,012
        Other expenses, net                             963    1,210
        Total                                        56,974   56,840
        Operating income                                693    1,356
           Reorganization item:
        Professional fees                              (967)     ---
        Interest expense                             (1,177)  (1,090)
        Interest income                                 250      264
        Income/(loss) before provision/(benefit)
         for income taxes                            (1,201)     530
        Provision/(benefit) for income
         taxes                                         (455)     203
        Net income/(loss)                           $  (746) $   327
            per common share                        $ (0.10) $  0.04
        Wtd. avg. number of common
         shares outstanding                           7,522    7,510

        CONTACT:  Cam Scearce, The Krystal Company, 423-757-1510


            PHILADELPHIA, April 25, 1996 - Mothers Work, Inc. (Nasdaq-
        NNM: MWRK), Episode USA Inc. and
Toppy International announced today
        execution of definitive agreements, subject to court approval, for
        Mothers Work to acquire the 21 stores of Episode USA Inc. and
        simultaneously to enter into a licensing agreement and distribution
        agreement to operate the Episode stores in their current format and
        under their current name.

            Rebecca C. Matthias, Mothers Work's President and Chief
        Operating Officer said, "We have always respected the Episode
        product and stores and are honored to enter into the bridge business
        through their name and to have access to Toppy and the Fang brothers
        Hong Kong based manufacturing enterprises as a source of bridge
        product.  We intend to uphold their standards, broaden the Company's
        product line through supplemental purchases and designs, and expand
        the chain once we have proven successful operations of the acquired
        stores.  The Company sees the ultimate potential of the Episode
        chain as 100 stores.  We intend to re-open on Madison Avenue and to
        open on Rodeo Drive in the near future."

            Jeffrey Fang, Chief Executive Officer of Toppy International
        said, "We are pleased that Mothers Work under Dan and Rebecca
        Matthias, its Chairman and President, are the purchasers of our US
        stores.  The presence of a local, growth oriented, personally
        involved management will bring Episode USA into the preeminence that
        will uphold the reputation of our 200 Episode stores worldwide.  Our
        rapid growth in Europe and our strength in Asia will now have an
        appropriate counterpart in the USA."

            Episode USA is currently in Chapter 11 proceedings, and has
        focused its business in a core of 21 best performing stores, down
        from 28 at the time of filing.  Mothers Work will purchase those
        leases and associated assets and inventory and will license the
        Episode trademark for an aggregate consideration of approximately
        $11 million payable in cash, shares of Mothers Work's common stock
        and through a royalty.  Subject to bankruptcy court approval of the
        purchase of assets, closing is anticipated at some time around June
        1, 1996.

            Mothers Work is the leading specialty retailer of maternity
        clothing.  It currently has 436 stores located primarily in upscale
        regional malls across the country, and services them from its
        Philadelphia headquarters, utilizing its Real Time Retailing(TM)
        quick response replenishment process.  The Company currently
        operates 225 Motherhood Maternity stores, 82 Mothers Work stores, 54
        Mimi Maternity stores, 39 Maternity Works outlet stores and 36 A Pea
        in the Pod stores.

        CONTACT:  Dan Matthias, Chairman & Chief Executive Officer, 215-
        873-2331, or Rebecca Matthias, President & Chief Operating Officer,
        215-873-2330, both of Mothers Work


            CHERRY HILL, N.J., April 25, 1996 - International
        Thoroughbred Breeders, Inc. (AMEX: ITB) today announced that its
        Board of Directors has approved the purchase of an option to acquire
        the remaining 2,904,016 shares of ITB Common Stock owned by its
        former chairman, Robert E. Brennan.  At the same time, Mr. Brennan
        announced his intention to transfer these shares, subject to the
        option, to a liquidating trustee, thereby eliminating control and
        any future ownership of this controlling block of shares by Mr.

            As previously reported, Mr. Brennan no longer has any
        association with ITB in any employment or director capacity.  The
        sale of his stock contemplated by these agreements constitutes the
        final step in his separation from ITB.

            The purchase price for the option is 70 cents per share, or
        $2,032,811, which will be credited toward the exercise price of
        those shares purchased under the option.  The option will be
        exercisable at a price of $7 per share, plus a portion of any
        appreciation in the value of a share above $7, based on an agreed-
        upon formula.

            Robert J. Quigley, chairman of ITB said, "The Board decided that
        it would be in the best interests of the Company and its
        shareholders to purchase the option from Mr. Brennan.  The way in
        which these agreements are structured will preclude  Mr. Brennan
        from controlling or owning this block of shares in the future.
        Furthermore, the purchase of a stock option enables the company to
        enhance its ability to better protect its $165 million net operating
        loss carryforward, which can be used to protect future earnings of
        the company.

            At signing, stock certificates representing all of Mr. Brennan's
        shares will be delivered, together with duly executed stock powers,
        to a liquidating trustee appointed with the approval of the New
        Jersey Casino Control Commission and the bankruptcy court overseeing
        Mr. Brennan's personal Chapter 11 bankruptcy proceeding.  The
        liquidating trustee will hold the shares in escrow and will vote the
        shares in the same proportion as the other stockholders of ITB.

            The agreements will require that if ITB does not exercise the
        option, Mr. Brennan's shares will be sold by the trustee, with ITB
        receiving the first proceeds from such a sale to the extent of its
        entire investment.  ITB has the right to assign the option for
        consideration or offer it for sale.  The option will be exercisable
        in whole or in part at any time, and will expire on December 1,
        2003, unless the liquidating trustee is required to dispose of the
        shares at an earlier date pursuant to the terms of the liquidating

            The transaction is subject to the approval of the United States
        Bankruptcy Court for the District of New Jersey, as well as the New
        Jersey Casino Control Commission and the New Jersey Racing
        Commission. Final approval is expected within 60 days.

            The company also announced the resignation of three directors:
        Joseph K. Fisher, Louis P. Guida, and George E. Norcross.  Mr.
        Fisher, a long time friend and business acquaintance of Mr.
        Brennan's, said that his decision to retire from the board at this
        time was particularly appropriate in light of Mr. Brennan's
        departure from the company and the expressed desires of ITB's new
        management to head in "new and exciting directions" through the
        development of its recently-announced Starship Orion project in Las

            Commenting on the resignations, Mr. Quigley said, "ITB looks
        forward to filling the vacancies with new directors whose background
        and experience will complement the implementation of the company's
        new strategic direction."

            In a separate release, the Company also announced today that its
        Orion Casino Corporation subsidiary has executed an agreement to
        purchase 15 acres of unimproved land from a subsidiary of ITT
        Corporation.  The 15 acres are located directly behind and
        contiguous to the site of its proposed 21-acre Starship Orion
        project.  With the addition of this prime land, Starship Orion will
        not only be one of the largest properties on the Las Vegas Strip,
        but also one of the most accessible.  Not only is it ideally located
        on the Strip, directly across from Circus Circus, but it will also
        have significant frontage on Riviera and Paradise Boulevards,
        directly opposite the Las Vegas Hilton and the adjacent Las Vegas
        Convention Center, allowing it to attract visitors from virtually
        all directions.  The increased land will also provide room for
        future expansion and increased parking.

            International Thoroughbred Breeders is headquartered in Cherry
        Hill, New Jersey.  The Company owns and operates Garden State Park
        in Cherry Hill, New Jersey and Freehold Raceway in Freehold, New
        Jersey.  The Company's wholly-owned subsidiary, Orion Casino
        Corporation, recently announced plans to develop a $1 billion, 5.4
        million square foot multiple casino, hotel, retail and entertainment
        complex on the Las Vegas Strip opposite Circus Circus on the 21
        acres formerly occupied by the El Rancho Hotel and Casino.  The
        Company expects to announce a corporate name change, more reflective
        of its new strategic direction, in the near future.

        CONTACT:  Jeffrey Lloyd of Sitrick And Company, 310-788-2850


            MINNEAPOLIS, April 25, 1996 -  JUMPIN' JAX CORPORATION
        (OTC Bulletin Board: JJAX), announced today the signing of an
        agreement with Lady Luck Bettendorf to open one of its JJAX
        Destination Family Entertainment Child Care Centers in the Lady Luck
        Center adjacent to their riverboat casino.  Alain Uboldi, Lady Luck
        President said "JJAX will take about one-fourth of the existing
        76,000 square foot facility with the remainder being taken by themed
        restaurants and specialty retail."  In addition to providing
        entertainment for the families of Lady Luck riverboat patrons, JJAX
        also will offer contract child care through its wholly owned
        subsidiary, Children's Choice Learning Centers to the quad-city

            Richmond Chandler, Chairman and Chief Executive Officer stated
        "Inclusion of JJAX in the Lady Luck Casino Center is just another
        example of the strong sense of corporate responsibility that Lady
        Luck has displayed since opening a year ago.  We're delighted to
        have this opportunity to assist in the development of what we expect
        will be the premier attraction of the quad-cities."  The JJAX
        Entertainment Center will include:


            The Company also reported that, as part of its continuing plan
        to reorganize Playpal, Inc., its
wholly owned subsidiary with regard
        to substantial debt which had been incurred by its prior management,
        Playpal has sought the advantages associated with the filing of
        Chapter 11 under the Bankruptcy Act.  The Company believes that such
        bankruptcy filing will afford Playpal with certain economic
        benefits, including the significant reduction of approximately $4.0
        million in unsecured debt, as well as the renegotiation of secured
        debt on terms favorable to Playpal.  The Company indicated that the
        filing is limited to its Playpal subsidiary and does not apply to
        Jumpin' Jax Corporation or its other subsidiaries.

        CONTACT: Richmond W. A. Chandler of JUMPIN' JAX CORPORATION,