TCR_Public/960501.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 1, 1996



  1. Cherokee Board Declares Distribution to Shareholders
  2. Corning Incorporated reports first quarter results
  3. DOW ANNOUNCES QUARTERLY EARNINGS OF $1.90 PER SHARE
  4. Bay Area Bancshares Adds Bennett Receivables To Nonperforming Assets
  5. O'Brien's Reorganization Completed




Cherokee Board Declares Distribution to Shareholders; Company Expects to
Earn $0.60 - $0.80 in Fiscal Year 1997


            VAN NUYS, Calif. -- May 1, 1996 -- href="chap11.cherokee.html">Cherokee Inc.
        (NASDAQ: CHKE) today announced that its Board of Directors has
        declared a tax-free return of capital (the "distribution") to its
        shareholders of record as of the close of business day May 15, 1996,
        which distribution will be made in accordance with section 316 of
        the Internal Revenue Code on May 30, 1996.  The amount of such
        distribution will be subject to final Board approval, cash
        availability on payment date, fourth quarter results and the
        completion of certain of Cherokee's strategic plans by such date.
        Currently, Cherokee anticipates that such distribution will be no
        less than $0.50 per share and no more than $1.35 per share.

        
            After consideration of Cherokee's achievements during the
        current fiscal year, the Board of Directors had amended Cherokee's
        Management Agreement with The Wilstar Group.  During the year,
        Cherokee has effectively liquidated substantially all of its
        inventory, eliminated all debt, negotiated and consummated the sale
        of its Uniform Division, favorably settled all debtor claims,
        retired 475,000 shares held by the Disbursing Agent for distribution
        to holders of trade claims, and entered into nine new licensing
        agreements, including a major licensing agreement with Target Stores
        which will provide substantial revenues to Cherokee through the year
        2001.  In connection with the foregoing, Cherokee has also reduced
        its overhead from an annual rate of approximately $24,250,000 to a
        current rate of $3,300,000.

        
            In light of these accomplishments and Cherokee's vastly improved
        financial condition, the Management Agreement was revised to
        accelerate the vesting of Wilstar's performance options so that
        Wilstar has been immediately vested in its right to purchase up to
        20% of Cherokee's Diluted Common Stock at $0.02 per share.  In
        connection with the foregoing, Wilstar agreed to relinquish its
        rights to purchase up to an additional 2.5% of Cherokee's Diluted
        Common Stock pursuant to the performance options.  Wilstar has
        exercised the performance options in full and purchased 1.675
        million shares.

        
            Cherokee will be accounting for this transaction as a non-cash
        charge to earnings.  The Board determined that this revision would
        serve to both compensate Wilstar and to align the ongoing interests
        of Wilstar with Cherokee.  As a result of the foregoing, including
        the retirement of the 475,000 shares, Cherokee currently has
        outstanding approximately 7,641,000 shares.
   

     
            Cherokee also announced that it has reached an agreement in
        principal for the sale of all of its trademark rights in Japan to
        Suzuya Co. Ltd. for $3,500,000.   Currently, Cherokee has a
        licensing agreement with Suzuya terminating in November 1997,
        pursuant to which Suzuya has an exclusive right to license the
        Cherokee trademark in Japan and six other territories.  In
        connection with the proposed agreement, Suzuya will terminate its
        rights in these territories.

        
            Robert Margolis, Chairman and CEO of Cherokee, stated that
        during the past year much effort was devoted to revitalizing
        Cherokee's balance sheet, completing the settlement of all
        bankruptcy claims and liquidating the assets of the "old Cherokee."
        Margolis added that Cherokee's licensing strategy has met with
        tremendous initial success, which he believes will be the
        cornerstone for its ongoing growth.  During fiscal 1997, he
        estimates that Cherokee's earnings from operations, on a diluted
        basis, will be approximately $0.60 to $0.80 per share.
   

     
            Margolis further noted, however, that any earnings in excess of
        $0.60 per share during fiscal 1997 would be based upon Cherokee's
        estimates of anticipated licensing revenues above the minimum
        guarantees set forth in existing contracts.  To the extent Cherokee
        did not obtain such revenues or its overhead costs are greater than
        anticipated, actual results could vary materially from the estimated
        results set forth above.

        
            Cherokee Inc., based in Van Nuys, California is a marketer and
        licenser of the Cherokee brand products.  The Company currently has
        27 continuing licensing agreements worldwide.
   

     


        
        CONTACT:  Cherokee Inc.
                  Carol Gratzke, 818/908-9868
                       or
                  Financial Relations Board
                  Tom Ekman, 310/442-0599  (analysts)
                  Daniel Saks/Fiona Ross, 310/442-0599 (gen. info)
        
Corning Incorporated reports first
quarter results


            CORNING, N.Y. -- April 15, 1996 -- Corning
        Incorporated (NYSE:GLW) said today that its first quarter net income
        totaled $71.8 million, or $0.31 per share.  
        


            This compares with adjusted first quarter 1995 earnings of $82.9
        million or $0.36 per share.  Adjustments to the 1995 results include
        the previously announced change to Corning's accounting calendar,
        effective January 1, 1996, and the elimination of equity earnings
        from Dow Corning Corporation following
its Chapter 11 filing in the
        second quarter of 1995.  Reported earnings for the first quarter of
        1995 were $79.4 million, or $0.35 per share.  

        
            The trend in first quarter net income was similar to the fourth
        quarter of 1995.  Strong growth in the Opto-electronics businesses
        and at Corning Pharmaceutical Services was more than offset by lower
        earnings at Corning Clinical Laboratories.  
   

     
            First quarter sales totaled $1.35 billion, an increase of 6
        percent over adjusted 1995 levels.  
      

  
            Equity earnings declined from adjusted 1995 levels primarily due
        to scheduled glass furnace repairs at Samsung-Corning Company LTD.  
        


            Board Chairman James R.  Houghton said, "In spite of the
        earnings decline, our first quarter was encouraging.  As we look
        ahead, we expect continued strength in our growth businesses as well
        as improving earnings comparisons at Corning Clinical Laboratories."

        
            Corning Incorporated is a Fortune 500 company whose businesses
        are at the leading edge of the technologies that comprise three of
        the fastest growing segments of the global economy
        -- Communications, Environment and Life Sciences.  Its 1995 sales
        totaled $5.3 billion.

            
         
                       Corning Incorporated and Subsidiary Companies
                           Consolidated Statements of Income
                       (In millions, except per-share amounts)
         
         
                             Quarter Ended            Twelve Weeks Ended
                             March 31, 1996             March 26, 1995
                                           (Unaudited)
                                                  
        Revenues
         Net sales                    $1,352.6               $  1,116.1
        
        Royalty, interest and
         dividend income                   8.8                      6.9
                                   1,361.4                  1,123.0
         
        Deductions
         Cost of sales                   873.2                    713.6
         Selling, general and
          administrative expenses        283.3                    221.5
         Research and development
          expenses                        46.1                     38.6
         Interest expense                 29.8                     26.0
            Other, net                 8.1                     15.4
         
        Income before taxes on income    120.9                    107.9
        Income tax expense                44.8                     39.9
         
        Income before minority interest
          and equity earnings             76.1                     68.0
        Minority interest in
         earnings of subsidiaries        (12.5)                   (11.3)
        Dividends on convertible preferred
         securities of subsidiary         (3.4)                    (3.2)
        Equity in earnings of associated
         companies:
         Other than Dow Corning
          Corporation                     11.6                      8.4
         Dow Corning Corporation                                   17.5
         
        Net Income                      $ 71.8                 $   79.4
         
        Earnings Per Common Share:
        Net Income                      $ 0.31                    $0.35
         
        Dividends Declared            $   0.18                 $   0.18
         
        Weighted Average Shares
         Outstanding                     227.2                    225.4
         
        The accompanying notes are an integral part of these statements.
         
        Corning Incorporated and Subsidiary Companies
        Condensed Consolidated Balance Sheets
        (In millions)
         
                                            March 31, 1996   Dec. 31, 1995
                                             (Unaudited)
         
         Assets
         
        Current Assets
          Cash and short-term investments       $ 164.3        $ 214.9
           Receivables, net                       971.4          932.4
           Inventories                            515.0          467.8
           Deferred taxes on income and
              other current assets                216.1          219.2
           Total current assets                 1,866.8        1,834.3
         
        Investments                                   349.2          376.1
           
         
        Plant and Equipment,  Net                   2,115.7        2,031.6
         
        Goodwill and Other Intangible Assets, Net   1,420.9        1,416.1
         
        Other Assets                                  304.5          329.0
                                            $   6,057.1   $    5,987.1
         
        Liabilities and Stockholders' Equity
         
        Current Liabilities
           Loans payable                        $ 271.3        $ 146.0
           Accounts payable                       189.4          255.2
           Other accrued liabilities              725.2          763.9
           Total current liabilities            1,185.9        1,165.1
         
        Other Liabilities                             671.7          664.9
        Loans Payable Beyond One Year               1,385.8        1,393.0
        Minority Interest in Subsidiary Companies     290.9          272.5
        Convertible Preferred Securities of Subsidiary364.8          364.7
        Convertible Preferred Stock                    23.6           23.9
        Common Stockholders' Equity                 2,134.4        2,103.0
                                           $    6,057.1     $  5,987.1
         

        The accompanying notes are an integral part of these statements.
        Corning Incorporated and Subsidiary Companies
        Notes to Consolidated Financial Statements
        Quarter 1, 1996

         
        (1) Effective January 1, 1996 Corning made several changes to its
        accounting calendar to make Corning's results more comparable with
        other companies and to enable Corning to report results of certain
        subsidiaries on a more current basis.  
   

     
        First, Corning adopted an annual reporting calendar.  Previous
        years operated on a fiscal year ending on the Sunday nearest
        December 31.  As a result, Corning's 1996 quarters will include
results for
        three calendar months while Corning's quarters previously included
        results for 12 weeks (16 weeks in the third quarter).  
        Second, Corning's 1996 quarters will include three months of
        operations for all significant subsidiaries and affiliates.  
        Previously, certain subsidiaries reported two months of results in
        the first quarter and four months of results in the third quarter.  
        Third, Corning Life Sciences, Inc.  and certain other
        consolidated subsidiaries that previously reported on a fiscal year
        ending November 30 adopted a calendar year end.  The December 1995
        results of these subsidiaries were recorded in retained earnings
        during the first quarter of 1996.  
        First quarter 1995 financial statements were not restated.  The
        following table presents unaudited pro forma results for the first
        quarter 1995 as if this change had occurred at the beginning of 1995


        
        (in millions):
         
                                       Total              Excluding Dow
                                      Company        Corning Corporation
         
             Sales                  $  1,279.0             $ 1,279.0
             Net Income             $    100.4             $    82.9
             Net Income Per Common
              Share                  $    0.44                  $0.36

         
        (2) Earnings per common share are computed by dividing net income
        less dividends on Series B convertible preferred stock by the
        weighted average number of common shares outstanding during the
        period.  The weighted average shares outstanding for the first
        quarter were 227.2 million and 225.4 million for 1996 and 1995,
        respectively.  Preferred dividends of $0.5 million were declared in
        the first quarters of 1996 and 1995.  

         
        (3) Depreciation and amortization charged to operations during the
        first quarters of 1996 and 1995 totaled $109.1 million and $88.1
        million, respectively.  
   


           CONTACT: Corning Incorporated, Corning
                Kathryn C. Littleton, (607) 974-8206
                Paul A. Rogoski, (607) 974-8832
         
                Investor Relations Contact:
                Richard B. Klein, (607) 974-8313
                Katherine M. Dietz, (607) 974-8217
   
     


DOW ANNOUNCES QUARTERLY EARNINGS OF $1.90
PER SHARE
        


            MIDLAND, Mich., April 25, 1996 - The following was
        released by Dow Chemical Company (NYSE: DOW):
        


        First Quarter of 1996 Highlights