TCR_Public/960503.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 3, 1996



  1. Caldor Reports Fourth Quarter and Fiscal 1995 Results
  2. HUNTWAY PARTNERS, L.P. REPORTS FIRST QUARTER RESULTS
  3. MCLOUTH STEEL PRODUCTS SIGNS AGREEMENT WITH HAMLIN HOLDINGS
  4. ERNST HOME CENTER, INC. ANNOUNCES SECOND QUARTER 1996 SALES




Caldor Reports Fourth Quarter and Fiscal 1995 Results
        


            NORWALK, Conn. -- May 3, 1996 -- href="chap11.caldor.html">The Caldor
        Corporation
(NYSE: CLD) today announced its financial results for
        the fiscal year (53 weeks) and fourth quarter ended February 3,
        1996.  
        


            For fiscal year 1995, net sales were $2.77 billion compared to
        $2.75 billion for fiscal 1994.  Comparable store sales declined by
        5.2% on a 52 week basis from the previous year.  For the fourth
        quarter of fiscal 1995, net sales were $939.1 million compared to
        $938.0 million.  Comparable store sales declined by 3.7% on a 13
        week basis from the previous year.  Caldor's performance was
        negatively impacted by several factors, including the highly
        competitive retail environment and disruption of merchandise flow
        due to the Company's Chapter 11 filing on September 18, 1995.  

        
            The Company's operating loss (earnings before interest, taxes
        and reorganization items) for fiscal year 1995 was $140.8 million
        versus operating earnings of $106.9 million in fiscal 1994.  The
        Company's operating loss for the fourth quarter of fiscal 1995 was
        $112.7 million compared to operating earnings of $72.1 million in
        fiscal 1994.  
   

     
            For the fiscal year 1995 and for the fourth quarter 1995, cost
        of goods sold includes provisions for anticipated losses on the
        liquidation of inventory in fiscal 1996, and estimated amounts for
        increased creditor claims, as a result of the Chapter 11 process.
        Selling, general and administrative expense rates for these periods
        increased compared to the same periods in fiscal 1994 due to lower
        than expected comparable store sales combined with increased
        insurance, advertising and new store costs.  

        
            The Company's net loss for fiscal 1995 was $301.0 million or
        $17.79 per share, compared to net earnings of $44.4 million or $2.65
        per share for fiscal 1994.  The Company's net loss for the fourth
        quarter of fiscal 1995 was $257.4 million or $15.20 per share,
        compared to net earnings of $39.1 million or $2.33 per share in
        fiscal 1994.  
   

     
            These losses include pre-tax reorganization charges of $170.7
        million for the full year and $166.1 million for the fourth quarter,
        consisting principally of provisions for rejected leases for 26
        properties, including the 12 previously announced store closings and
        the decision not to proceed with other planned facilities, as well
        as related asset write-offs.  The charge also includes provisions
        for the employee retention program, professional fees, deferred
        financing costs and other bankruptcy-related items.  

        
            The Company noted that it has financing in place to continue to
        meet its future obligations, with significant credit availability
        aggregating approximately $290 million under its debtor-in-
        possession credit facility, as of April 26, 1996.  The Company also
        noted that the vendor community has steadily and significantly
        increased its support since the Chapter 11 filing through improved
        credit terms.  
   

     
            Don R. Clarke, Chairman and Chief Executive Officer of Caldor
        noted that, "The Company's results for the year were adversely
        affected by the tough retail climate and the Chapter 11 filing.  We
        have, however, made several moves to strengthen our senior
        management team, having recently announced the appointment of Warren
        Feldberg, a seasoned retailing executive, as President and Chief
        Operating Officer, and Jack Reen as Chief Financial Officer.  Caldor
        has assembled a team of highly skilled and experienced executives to
        lead the reorganization process, and we have begun the process of
        reorganizing our business."  

        
            Mr. Clarke also noted, "The business trend has improved, and the
        Company's operating results for February and March of fiscal 1996
        have exceeded the Company's financial plan for this period."  
   

     
            The Company opened four new stores in April and has plans to
        open three additional sites, including two previously announced
        stores and a third in Atlantic Center in Brooklyn, New York during
        the balance of 1996.  These stores are expected to contribute
        significant sales volume and fit into the Company's urban/suburban
        strategy.  
      

  
            The Caldor Corporation is the fourth largest discount department
        store chain in the U.S., with annual sales of approximately $2.8
        billion and approximately 24,000 Associates.  It currently operates
        170 stores in ten East Coast states and has announced the closing of
        12 stores.  With a strong consumer franchise in high density
        urban/suburban markets, Caldor offers a diverse merchandise
        selection, including both softline and hardline products.


        
                   The Caldor Corporation and Subsidiaries
                    Consolidated Statements of Operations
                (Dollars in thousands, except per share data)
        
                               Fourth Quarter Ended  Fiscal Year Ended
                                 Feb. 3,   Jan. 28,    Feb. 3,   Jan. 28,
                                  1996       1995       1996       1995
                               (14 Weeks) (13 Weeks) (53 Weeks) (52 Weeks)
        
        Net sales                    $939,059   $938,028 $2,765,525
        $2,748,634
        Cost of merchandise
           sold (LIFO)                799,854    673,145  2,147,539
        1,976,332
        SG&A expenses                 228,752    177,277    697,658
        616,948
        Depreciation and
           amortization                23,147     15,501     61,081
        48,478
        Operating earnings (loss)    (112,694)    72,105   (140,753)
        106,876
        Interest expense, net          10,519      8,738     40,973
        34,948
        Earnings (loss) before
           reorganization items,
           income taxes and
           extraordinary items       (123,213)    63,367   (181,726)
        71,928
        Reorganization items          166,094               170,731
        Earnings (loss) before
           income taxes and
           extraordinary items       (289,307)    63,367   (352,457)
        71,928
        Income tax
           provision (benefit)        (35,174)    24,272    (59,825)
        27,569
        Earnings (loss) before
           extraordinary items       (254,133)    39,095   (292,632)
        44,359
        Extraordinary loss             (3,232)               (8,396)
        Net earnings (loss)         ($257,365)   $39,095  ($301,028)
        $44,359
        
        Per Share Amounts:
        Earnings (loss) before
           extraordinary items        ($15.01)     $2.33    ($17.30)
        $2.65
        Extraordinary loss             ($0.19)               ($0.49)
        Net earnings (loss)           ($15.20)     $2.33    ($17.79)
        $2.65
        
        Weighted average common and
           common equivalent shares
           outstanding                 16,929     16,752     16,918
        16,753
        

                   The Caldor Corporation and Subsidiaries
                         Consolidated Balance Sheets
                           (Dollars in thousands)
        
                                             Feb. 3,   Jan. 28,
                                              1996       1995
        ASSETS
        Current assets:
           Cash and cash equivalents             $25,577    $21,100
           Accounts receivable                    18,059      8,226
           Merchandise inventories               499,948    550,932
           Assets held for disposal               25,265
           Refundable income taxes                 5,380
           Prepaid expenses & other
          current assets                      17,047     12,430
            Total current assets             591,276    592,688
        
        Property and Equipment, net              551,977    541,573
        Debt issuance costs                        4,674      4,531
        Deferred income taxes                     16,626
        Other assets                               9,466     10,680
                                          $1,174,019 $1,149,472
        
        LIABILITIES AND STOCKHOLDERS' EQUITY
        Current liabilities:
           Accounts payable                     $156,240   $307,643
           Accrued expenses                       70,835     38,653
           Other accrued liabilities              52,836     49,568
           Federal & state income
          taxes payable                                  39,204
           Current deferred income taxes                      4,539
           Borrowings under revolving
          credit agreement                    40,000     70,243
           Current maturities of long-term debt              40,618
            Total current liabilities        319,911    550,468
        
        Long-term debt                           260,785    236,699
        Deferred income taxes                                 7,131
        Other long-term liabilities               25,158     18,008
        Liabilities subject to compromise        530,957
        
        Stockholders' equity
           Common stock, par value                   170        167
           Additional paid-in capital            205,047    199,456
           Retained earnings (deficit)          (163,485)   137,543
           Unearned compensation                  (4,524)
            Total stockholders' equity        37,208    337,166
                                          $1,174,019 $1,149,472


        CONTACT: Information Contacts:
                 Wendi Kopsick/Jim Fingeroth -  
                 Kekst and Company: (212) 593-2655



HUNTWAY PARTNERS, L.P. REPORTS FIRST QUARTER RESULTS

        
            NEWHALL, Calif., May 3, 1996 - Huntway Partners, L.P.
        (NYSE: HWY) reported today that it lost $2,219,000, or $.19 per
        unit, in the first quarter of 1996 compared to a net loss of
        $3,388,000, or $.29 per unit, in the first quarter of 1995.
        Revenues were $17,209,000 versus $12,278,000 in the same quarter a
        year ago, when results were negatively impacted by unusually high
        levels of rainfall in California.
        


            The company attributed the better operating performance to
        improved margins on all products.  Asphalt margins improved in the
        just-completed quarter versus a year earlier because record rainfall
        in the first quarter of 1995 adversely affected results and forced
        the sale of significant amounts of low margin fuel oil.  Margins for
        the company's light-end products also improved in the first quarter
        of 1996 commensurate with higher margins for finished gasoline and
        diesel fuel in the state.  Financial results in the first quarter of
        the year are usually weak because wet winter weather means fewer
        road surfacing and repair jobs are completed.

        
            On April 15, 1996, the Company announced the terms of its
        restructuring agreement reached with the holders of 86% of its
        senior debt and with its junior noteholder.  Under the terms of the
        proposed agreement, in exchange for 13.8 million units, debt will be
        reduced to $25.6 million from $95.5 million effective January 1,
        1996.  Due to the fact that one lender, representing 14% of senior
        debt, has refused to date to approve the agreement, the company also
        announced at that time that it may be forced to file a "prepackaged"
        reorganization plan under the U.S. Bankruptcy Code to implement the
        restructuring.  Had the new debt restructuring been in place at the
        beginning of the first quarter, interest expense for the quarter
        would have been reduced to $835,000 from $1,289,000, or a difference
        of $454,000, or $.04, per unit.  The company currently believes the
        restructuring will be completed by the end of September of this
        year.
   

     
            Huntway President and Chief Executive Officer, Juan Forster,
        said, "Our expected first quarter operating loss was reduced 34%
        versus the prior year and we expect to see greater improvements in
        quarterly results through the balance of the year as the demand for
        our products continue to strengthen."

        
            Huntway Partners, L.P. owns and operates two refineries at
        Wilmington and Benicia, California, which primarily process
        California crude oil to produce liquid asphalt for use in road
        construction and repair, as well as smaller amounts of gas oil,
        naphtha, kerosene distillate and bunker fuels.  The company's third
        refinery, at Coolidge, Arizona, is shut down although it may be
        reopened as a terminal in 1997 or beyond.
   

     
            The company's preference units are traded on the New York Stock
        Exchange under the symbol HWY.
      


  
                             HUNTWAY PARTNERS, L.P.
                            SELECTED FINANCIAL DATA
                           FOR THE THREE MONTHS ENDED
                                 MARCH 31, 1996
                      (In Thousands Except Per Units Data)
                                         Three Months Ended
                                       March 31,      March 31,
                                            1996           1995
        
           Revenues                          $17,209        $12,278
           Material and Processing            16,758         12,768
           Selling and Administration            866          1,081
           Interest Expense                    1,289          1,255
           Depreciation and Amortization         515            562
           Net Loss                         $(2,219)       $(3,388)
           Loss Per Unit                     $(0.19)        $(0.29)
           Equivalent Units Outstanding       11,673         11,673
           Barrels Sold                          887            750
        
                             HUNTWAY PARTNERS, L.P.
                           CONSOLIDATED BALANCE SHEET
                             (Dollars in Thousands)
        
                                        March 31,      March 31,
                                             1996           1995
        
           Cash                                $2,826         $4,304
           Accounts Receivable                  5,101          4,820
           Inventory                            5,101          3,320
           Prepaid Expenses                       912            676
           Property, Net                       58,687         58,677
           Other Assets                         2,703          2,596
           Total Assets                       $75,330        $74,393
           Accounts Payable                    $8,641         $6,582
           Accrued Liabilities                  4,727          3,530
           Debt                                94,695         94,795
           Partners' Capital                 (32,733)       (30,514)
           Total Debt and Partners' Capital   $75,330        $74,393
        
                             HUNTWAY PARTNERS, L.P.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                             (Dollars in Thousands)
        
                                            Three Months
                                           Ended March 31,
                                             1996      1995
           Net Loss                          $(2,219)  $(3,388)
           Add: Depreciation and PIK Notes        515     1,158
           Changes in Working Capital             990   (1,112)
           Cash Used by Operating Activities    (714)   (3,342)
           Cash Used by Investing Activities    (664)     (247)
           Cash Used by Financing Activities    (100)     (123)
           Net Decrease in Cash               (1,478)   (3,712)
           Cash at Beginning of Period          4,304     5,984
           Cash at End of Period               $2,826    $2,272


        CONTACT:  Warren J. Nelson, Executive VP and CFO of Huntway,
        805-286-1582; or Thomas E. Siebert of Siebert & Associates,
        818-865-1594



MCLOUTH STEEL PRODUCTS SIGNS AGREEMENT WITH HAMLIN HOLDINGS


            TRENTON, Mich., May 3, 1996 - href="chap11.mclouth.html">McLouth Steel Products
        Corporation
announced today that it has signed an agreement with
        Hamlin Holdings to purchase McLouth Steel, subject to approval of
        the bankruptcy court.
        


            McLouth Steel said Hamlin Holdings is an affiliate of the
        Reserve Group of Akron, Ohio, an investment company specializing in
        investing in industrial companies, and with a longstanding track
        record in the steel industry.  In 1995, the Reserve Group acquired
        Cooperweld Steel, an electric furnace based manufacturer of special
        bar quality steel based in Warren, Ohio.  The principals of the
        Reserve Group were also among the former owners of Gulf States
        Steel, an integrated manufacturer of flat products based in Gadsden,
        Alabama.
        


            McLouth Steel said that Hamlin Holdings intends to restart the
        operations of McLouth Steel during the second half of 1996.  The
        Company also stated that Hamlin Holdings intends to invest capital
        in the Company to modernize the facilities.

        
            McLouth Steel, based in Trenton, Michigan, is an integrated
        steel manufacturer with operations in Trenton and Gibraltar,
        Michigan, and with annual steelmaking capacity of approximately 1
        million tons. McLouth Steel entered into Chapter 11 proceedings of
        the U.S. Bankruptcy Code on September 29, 1995.
   


        CONTACT:  McLouth Corporate Offices, 313-246-4002




ERNST HOME CENTER, INC. ANNOUNCES SECOND QUARTER 1996 SALES
        


            SEATTLE, May 3, 1996 - Ernst Home Center, Inc. (Nasdaq:
        ERNS) today announced sales for the second quarter of fiscal 1996
        which ended April 27, 1996.  Sales for the quarter were $105.2
        million, down 16.9% for the comparable 1995 fiscal period.  For the
        first six months of the year, sales were $228.8 million, down 8.1%
        from the comparable 1995 period.

        
            Sales during the quarter were impacted by weather, which was
        colder and wetter than normal, short-term inventory availability, a
        slowdown in home improvement store activity and increased
        competition.  These same forces affected comparable store sales
        (sales from stores open more than one year, including stores
        replaced by new stores).  Comparable store sales were down 20.3% for
        the quarter.
   

     
            During the latter part of the quarter the Company's inventory
        stocking position improved and the Company also implemented its
        "Ernst 96" customer service improvement program.
      

  
            Ernst, based in Seattle, Washington, is a major home improvement
        retailer operating stores in Washington, Oregon, California, Idaho,
        Montana, Utah, Nevada, Colorado, and Wyoming.
        


        CONTACT:  Douglas Sherk or Chris Danne, 415-296-7383, or
        Stacey Herschaft or Ellissa Grabowski, 212-850-5600, all of Morgen-
        Walke Associates, Inc., for Ernst Home Center