TCR_Public/960513.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 13, 1996



  1. HOMELAND STORES ANNOUNCES FINAL DETAILS OF RESTRUCTURING
  2. GENSIA REPORTS 1996 FIRST QUARTER RESULTS
  3. B'NAI B'RITH CALLS BANKRUPTCY REPORT `SHAMEFUL AND INACCURATE'
  4. CASINO MAGIC ANNOUNCES COMPLETION OF ITS ACQUISITION OF CRESCENT CITY
  5. MINNESOTA BREWING COMPANY ANNOUNCES 1996 FIRST QUARTER RESULTS
  6. SEVEN-UP/RC BOTTLING COMPANY OF S. CALIFORNIA, INC. ENTERS CHAPTER 11
  7. Grossman's releases first quarter results and balance sheets
  8. USTrails Inc. announces third quarter results
  9. Coastal Physician Group, Inc. delays release of first quarter operating results




HOMELAND STORES ANNOUNCES FINAL DETAILS OF RESTRUCTURING PLAN
        -- COMPANY TO CONDUCT BUSINESS AS USUAL THROUGHOUT PROCESS -- $27
        MILLION IN WORKING CAPITAL FINANCING ARRANGED -- CEO SAYS HOMELAND
        TO MAINTAIN MARKET LEADERSHIP
        


            OKLAHOMA CITY, May 13, 1996 -
Homeland Stores, Inc.
, a
        private company, announced today that it will begin implementing its
        previously announced financial restructuring plan.  As previously
        reported, the proposed restructuring is supported by Homeland's bank
        group, a committee representing approximately 80% of Homeland's
        outstanding senior secured bonds, and Homeland's labor unions.  The
        restructuring is expected to reduce Homeland's debt service
        obligations and labor costs, which will greatly strengthen its
        financial position and permit the company to maintain its market
        leadership.  Homeland expects to complete the restructuring by mid-
        summer 1996.
        


            An integral part of Homeland's restructuring is its previously
        announced pact with its labor unions to modify certain elements of
        Homeland's collective bargaining agreements.  These modifications,
        which were overwhelmingly ratified by the union members in March,
        will provide for, among other things, wage and benefit
        modifications, the buyout of certain employees, and the issuance and
        purchase of new equity to a trust acting on behalf of the unionized
        employees.  The modified collective bargaining agreements are
        conditioned on, and will become effective upon, the consummation of
        the restructuring.
        


            The restructuring will be implemented by means of a "pre-
        arranged" Chapter 11 plan of reorganization, which was submitted
        today to the United States Bankruptcy Court, District of Delaware,
        together with a disclosure statement describing the plan.  In order
        to facilitate the restructuring process, Homeland has entered into a
        debtor-in-possession lending facility with its existing bank group,
        providing Homeland with up to $27 million of working capital
        financing.  This facility has been approved on an interim basis by
        the court, with a final approval hearing scheduled for May 31, 1996.
        Homeland believes that this facility will provide it with the
        financing necessary to maintain its normal business operations
        during the restructuring period, including the payment of the post-
        petition claims of employees and trade vendors.
        


            Homeland said that the financial restructuring will have no
        impact on the company's normal store operating hours or its in-store
        promotions, such as double coupons.  Homeland said that as part of a
        long-term effort to rationalize its store network, it plans to close
        one store at 1520 North Lewis Street in Tulsa, OK and one store at
        5800 Bell Street in Amarillo, TX.  The approximately 50 affected
        employees will have employment opportunities in Homeland stores
        within their respective areas.  Going forward, the company expects
        to operate a total of 65 stores and employ approximately 4,250
        people.
        


            Pursuant to the restructuring, the $95 million of Homeland's
        senior secured bonds currently outstanding (plus accrued interest)
        will be canceled, and the bondholders will receive (in the
        aggregate) $60 million face amount of new senior subordinated notes
        and $1.5 million in cash.  The new senior subordinated notes will
        mature in 2003, bear interest semi-annually at a rate of 10% per
        annum, and will not be secured.  In addition, the bondholders and
        the company's general unsecured creditors will receive approximately
        60% and 35%, respectively, of the equity of the reorganized Homeland
        (assuming total unsecured claims of approximately $63 million,
        including bondholder unsecured claims).  Homeland's existing equity
        holders will receive the remaining 5% of the new equity, together
        with 5-year warrants to purchase an additional 5% of such equity.
        


            "For fifty years we have been providing customers in this area
        with superior levels of service and quality products at good prices,
        and we plan to be here for at least another fifty doing this and
        more for our customers," said James A. Demme, Homeland's Chief
        Executive Officer. "This agreement permits us to continue business
        as usual, which is good news for our customers, our employees, our
        creditors and our suppliers."
        


            P. Eric Siegert, Senior Vice President of Houlihan, Lokey,
        Howard & Zukin, the firm advising Homeland's bondholders, said, "We
        believe that Homeland's financial restructuring plan is sound and
        will put the company back on solid footing.  The bondholder
        committee unanimously supports this plan of reorganization."
        


            Mike DeFabis, President and Chief Executive Officer of
        Associated Wholesale Grocers, one of the largest food wholesalers in
        the U.S., which supplies 70% of Homeland's requirements, said, "We
        strongly support Homeland, and the long-term supply agreement we
        have with the company reflects our confidence that it will remain
        the leader in the communities it serves."
        


            "These final steps represent a new beginning for Homeland and
        will allow us to maintain both our recent momentum and our long-
        standing market leadership," Mr. Demme added.  "We are gratified by
        the strong support that all involved have given the restructuring
        plan.  The cooperative spirit demonstrated by employees, creditors,
        and suppliers shows a genuine interest in the future success of
        Homeland."
        


            Homeland is the leading supermarket chain in Oklahoma, southern
        Kansas, and the Texas panhandle region.
        


        CONTACT:  Thomas C. Franco or Rohit J. Menezes for Homeland Stores,
        Inc., 212-229-2222




GENSIA REPORTS 1996 FIRST QUARTER RESULTS

        
            SAN DIEGO, May 13, 1996 - Gensia, Inc. (Nasdaq: GNSA)
        today reported a net loss of $12.8 million, or $0.36 per share
        (after undeclared and unpaid cumulative preferred stock dividends of
        $1.5 million) in the first quarter ended March 31, 1996, compared to
        a net loss of $14.5 million, or $0.45 per share (after preferred
        stock dividends of $1.5 million) in the first quarter of 1995.  The
        1995 first quarter results included a $4 million litigation
        settlement charge for shareholder class action litigation and a $1.1
        million restructuring charge.
        


            Product sales in the first quarter of 1996 amounted to $12.9
        million versus $13.3 million in the same period of 1995.  The cost
        of goods sold associated with these product sales was $8.5 million
        for the first quarter of 1996 and $8.6 million for the first quarter
        of 1995.  Total revenues were $13.6 million in the 1996 first
        quarter compared to $18.0 million in the 1995 first quarter.  The
        reduction in total revenues is primarily a result of the Company
        having no contract research revenues in the first quarter of 1996
        compared to $4.2 million in contract research payments in 1995,
        which primarily consisted of payments from Aramed, Inc. (which was
        acquired by Gensia in November 1995) and the recognition of deferred
        income from a collaboration announced in October 1994 with
        Boehringer Mannheim Pharmaceuticals Corporation.
        


            On-going research and development expenses were $8.2 million in
        the 1996 first quarter and $9.6 million in the comparable 1995
        period.  This decrease was primarily due to continued efforts to
        reduce research expenses and lower overhead costs following a
        restructuring of the Company to reduce development expenses in
        February 1995.  Selling, general and administrative expenses were
        $7.9 million in the 1996 first quarter compared to $7.5 million in
        the 1995 first quarter, reflecting the expansion of sales and
        marketing activities.
        


            At March 31, 1996 Gensia had working capital of $56.5 million
        and cash and short-term investments of $44.3 million.  At December
        31, 1995 Gensia had working capital of $67.7 million and $58.9
        million in cash and short-term investments.  The decrease reflects
        the impact of operating losses for the quarter, payments of current
        liabilities and capital expenditures related to new product
        development at Gensia Laboratories, Ltd.
        


            Gensia expects additional funding from a research collaboration
        with Pfizer Inc. announced on May 6, 1996, to discover and develop
        broad- spectrum analgesic drugs for the treatment of pain using
        Gensia's adenosine regulating agent (ARA) technology.  The agreement
        provides for Pfizer to make an up-front licensing payment and to
        provide basic research funding to Gensia for pain research for a
        period of at least two years.  The agreement also calls for Pfizer
        to make a $5 million equity investment in Gensia Common Stock at a
        premium to the market price at the time of the agreement.  With
        additional milestone payments and assuming successful development of
        a compound, the total value of the collaboration could be
        approximately $50 million plus royalty payments on the sales of any
        approved product resulting from the collaboration.  The agreement is
        expected to close in the second quarter of 1996.
        


            Gensia Laboratories, Ltd. is a wholly-owned subsidiary of
        Gensia, Inc. located in Irvine, California which develops,
        manufactures and markets multisource injectable drug products for
        the acute care and alternate site markets.  Gensia is a research-
        based company focused on the discovery, development, manufacturing
        and marketing of health care products for the acute care market.
        


            This press release contains forward looking statements that are
        subject to risks and uncertainties that could cause actual results
        to differ materially from those set forth in the forward looking
        statements, including whether transactions contemplated pursuant to
        the Pfizer agreements will be consummated, whether any milestone
        payments will be achieved, whether any product candidates can be
        successfully developed and commercialized, or whether the research
        collaboration contemplated by the Pfizer agreements will be
        successful.  These forward looking statements represent the
        Company's judgement as of the date of this press release.  The
        Company disclaims any intent or obligation to update these forward
        looking statements.
        



                        Consolidated Balance Sheet Data
                                 (in thousands)
        
                                                March 31,   December 31,
                                                  1996         1995
        Assets:
         Cash, cash equivalents and
          short-term investments                $44,345       $58,861
         Other current assets                    25,292        25,037
         Property and equipment, net             27,089        25,749
         Other assets                             8,547         8,913
          Total assets                         $105,273      $118,560
        
        Liabilities and stockholders' equity:
         Current liabilities                    $13,128       $16,211
         Other liabilities                          170            46
         Stockholders' equity                    91,975       102,303
          Total liabilities and
           stockholders' equity                $105,273      $118,560
        
                   Consolidated Statement of Operations Data
                     (in thousands, except per share data)
        
                                                   Three months ended
                                                        March 31,
                                                    1996         1995
        Revenues:
         Product sales                            $12,894      $13,330
         Contract research and license fees            --        4,151
         Interest income                              712          488
          Total revenues                           13,606       17,969
        
        Costs and expenses:
         Cost of sales                              8,471        8,618
         Research and development                   8,197        9,574
         Selling, general and administrative        7,927        7,546
         Interest and other                           307          110
         Restructuring charges                         --        1,092
         Litigation settlement                         --        4,000
          Total costs and expenses                 24,902       30,940
        
        Net loss                                  (11,296)     (12,971)
        Dividends on preferred stock, including
         undeclared and unpaid dividends of
         $1,488 for the three months ended
         March 31, 1996 and dividends paid of
         $1,488 for the three months ended
         March 31, 1995                            (1,488)      (1,488)
        Net loss applicable to common shares     $(12,784)    $(14,459)
        Net loss per common share(a)                $(.36)       $(.45)
        Weighted average number
         of common shares(b)                       35,458       32,278


        
            (a) Loss per share of common stock is computed by dividing net
        loss plus applicable preferred stock dividends by the weighted
        average number of shares of common stock outstanding.

        
            (b) Shares used in computing per share amounts for the three
        months ended March 31, 1996 include the effect of 567,554 shares
        issuable at $5.0656 per share in payment of Contingent Value Right
        obligations.
       


        CONTACT:  Martha L. Hough of Gensia, 619-546-8300



B'NAI B'RITH CALLS BANKRUPTCY REPORT `SHAMEFUL AND INACCURATE'
        


            WASHINGTON, May 13, 1996 - B'nai B'rith International
        president Tommy P. Baer today categorically denied a published
        report in U.S. News and World Report that B'nai B'rith will be
        "forced shortly to declare bankruptcy."
        


            "We are shocked at this gross misstatement of facts and are
        consulting legal counsel to restore our reputation," said Baer.  "I
        cannot say it clearly and strongly enough:  B'nai B'rith has no
        intention to declare bankruptcy and is definitely not on the verge
        of any such action." The B'nai B'rith president continued, "anyone
        who would report such a rumor after it was categorically denied by
        our spokesperson is guilty of the worst kind of shameful and
        inaccurate journalism.  We will take strong and forceful action to
        protect our good name from slurs of this kind."
        


            At a recent Board of Governors meeting, B'nai B'rith discussed
        financial concerns - similar to those being addressed by most
        American non-profit organizations.  Although membership in voluntary
        organizations is declining in most membership groups, B'nai B'rith
        is restructuring to make it more receptive to its members' needs.
        The Board concentrated on refining a proposal which has been in
        development for 18 months to radically alter the 153-year-old
        organization's structure and priorities to provide more service to
        the grassroots membership.  This plan, still under development, will
        be voted upon at the International Convention August 30-September 3
        in Washington, D.C. Baer charged U.S. News with "equating major
        restructuring with financial collapse.  To make a connection of this
        kind can only be termed irresponsible."
        


            B'nai B'rith leaders point to positive developments within the
        organization: 30 new groups for young people established over the
        last two years, the expansion of B'nai B'rith Youth chapters
        throughout Eastern Europe and a 10-year-fundraising high.
        


            Baer added that the organization's assets are nearly twice its
        liabilities.  Furthermore, B'nai B'rith has taken important steps to
        guarantee its fiscal integrity.  Baer explained that "two years ago,
        we effectively lost the income from a members' insurance program
        which had provided us with $2 million each year and then disappeared
        virtually overnight.  Rather than cut important services at that
        time, we instituted a number of new efforts to restore that income
        but they have not yet matured into significant income producing
        vehicles." To compensate for the loss of income and provide a
        cushion against future losses, last week the Budget Committee cut $2
        million from the 1997 fiscal budget. "These actions," Baer observed,
        "are similar to those which many major corporations are undertaking.
        We are reallocating our resources and redefining our priorities.
        With these steps, we will insure our financial health and continue
        to provide the quality service which has been our hallmark for 153
        years."
        


            The B'nai B'rith president pointed to the organization's long
        history and observed:  "This is the kind of flexibility which has
        made B'nai B'rith the world's oldest and largest Jewish
        organization. It is the kind of responsible fiscal action which will
        enable us to continue to serve the Jewish community and grow for at
        least another century and a half."
        


        CONTACT:  Robin Schwartz-Kreger of B'nai B'rith, 202-857-6536



        
        CASINO MAGIC ANNOUNCES COMPLETION OF ITS ACQUISITION OF CRESCENT
        CITY
        


            BAY SAINT LOUIS, Miss., May 13, 1996 - Casino Magic Corp.
        (Nasdaq: CMAG), today announced it has completed its acquisition of
        Crescent City Capital Development Corp. ("Crescent City"), a wholly
        owned subsidiary of Capital Gaming International, Inc. (OTC: GDFI),
        which holds a Louisiana gaming license.  Crescent City received
        Louisiana State Police approval of the transaction on April 30,
        1996; Bankruptcy Court approval to transfer ownership to Casino
        Magic as a part of Crescent City's Amended Plan of Reorganization on
        April 29, 1996 and on March 26, 1996, Casino Magic received
        Louisiana Riverboat Gaming Commission approval for the transfer of
        ownership of Crescent City, and the relocation of its gaming license
        to Bossier City, Louisiana.
        


            This transaction is valued at $56.5 million, of which, $15
        million was paid in cash and the remaining balance in debt,
        including up to $6.5 million in gaming equipment liability.
        


            Casino Magic, through a wholly owned subsidiary, intends to
        operate a new casino in Bossier City, Louisiana.  Casino Magic owns
        20 acres of land in Bossier City on the Red River with immediate
        access from Interstate 20, a major artery between the Dallas-Ft.
        Worth area and Bossier City.  Casino Magic's pre-local option
        referendum construction plan includes 30,000 square feet of floating
        dockside casino space which will have approximately 1,000 slots and
        60 table games.  The plan also includes 1,500 parking spaces
        together with an entertainment and food and beverage pavilion.  Post-
        local option referendum plans include the construction of a 60,000
        square feet entertainment facility and a 400-room convention hotel.
        Opening is anticipated during 1996.
        


            Casino Magic Corp., a Minnesota corporation with principal
        offices in Bay Saint Louis, Miss., operates gaming casinos in Bay
        Saint Louis and Biloxi, Miss., Deadwood, S.D., Neuquen City and San
        Martin de los Andes, Argentina, and Porto Carras and Xanthi, Greece.
        


        CONTACT:  Jay S. Osman, Chief Financial Officer, Casino Magic
        Corp., 601-466-8010, or email, josmancasinomagic.com



MINNESOTA BREWING COMPANY ANNOUNCES
1996 FIRST QUARTER RESULTS
        


            ST. PAUL, Minn., May 13, 1996 - Minnesota Brewing Company
        (Nasdaq: MBRW) announced today net sales for its first quarter ended
        March 31, 1996 were $5,099,484, a decrease of 26.5% from net sales
        of $6,938,030 for the first quarter of 1995.  The Company's net loss
        for the first quarter of 1996 was $470,910 or $.14 per share
        compared to a net loss of $339,628 or $.10 per share for the first
        quarter of 1995.
        


            The sales decrease in the first quarter of 1996 was attributable
        to the absence of sales to Pete's Brewing Company (Pete's) whose
        contract concluded in the fourth quarter of 1995.  This decrease was
        partially offset by an increase in sales of the Company's
        proprietary brands along with an increase in contract brewing of
        beer for third parties other than Pete's.  During the first three
        months of 1996 the Company sold a total of 96,112 barrels, a
        decrease of 29.5% from 1995 first quarter sales of 136,384 barrels.
        The comparison for the same period excluding Pete's sales reflects
        an increase in barrelage sales of 22,637 barrels or 30.9% from
        73,249 barrels in the first quarter of 1995 to 95,886 barrels in the
        first quarter of 1996.
        


            The Company's gross profit for the first quarter of 1996 was
        less than the gross profit for the first quarter of 1995 and was
        principally attributed to the decrease in sales volume and the
        related impact of fixed plant overhead levels.  Concurrently the
        Company's net loss for the first quarter of 1996 was greater than
        the loss for the first quarter of 1995.  While operating expenses
        were reduced from the first quarter of 1995 to 1996 they did not
        fully cover the decrease in gross profit for the same periods.
        


            President Richard McMahon said, "The increase in proprietary
        sales was encouraging since it came across the board from our Grain
        Belt Family of Brands, our Pig's Eye Family of Brands and from our
        Landmark and specialty product brands.  The continuing market
        acceptance and further support of our proprietary products is
        appreciated and is evidence of the great joint promotional effort
        put forth by retailers, distributors and our own sales and marketing
        team.  We will continue to build on these efforts and complement
        them further with the introduction of new products.  Our newest
        product "Yellow Belly" came to the market in May, 1996.  The Lemon-
        Ale Malt beverage has been popular in England and our Company has
        been one of the first to bring out this product in the United
        States.  We continue to develop additional products while supporting
        and building our core brand business."
        


            Mr. McMahon also indicated that the Company was continuing to
        product LaCroix water products on a cash basis for the
Winterbrook
        Corporation
, which filed a Chapter 11 petition for bankruptcy in
        March, 1996.  Pursuant to a court approved interim agreement,
        Winterbrook has paid the Company approximately $410,000 for
        inventory held by the Company at the time of the bankruptcy filing
        and subsequently shipped to Winterbrook.  The Company is owed an
        additional $310,000 from Winterbrook and has filed a claim in
        Bankruptcy Court in this amount. The Company has created a loss
        reserve of $160,000 against this claim. The Company expects a
        favorable resolution of this matter, although the Company is
        currently unable to determine whether Winterbrook Corporation will
        be successful in emerging from Chapter 11.
        



                           MINNESOTA BREWING COMPANY
                           1996 FIRST QUARTER RESULTS
        
            The following table sets forth the unaudited comparative
        operating results for the three months ended March 31, 1996 and 1995
        respectively.
        
                                                          Three Months Ended
                                                               March 31
                                                          1996         1995
        
        Net Sales                                   $5,099,484   $6,938,030
        Gross Profit                                   119,834      345,348
        Operating Income                               442,633     (320,679)
        Net Income (Loss)                             (470,910)    (339,628)
        Net Income (Loss) per Share                      $(.14)       $(.10)
        Weighted Average Shares Outstanding          3,355,277    3,334,567
        
            The following table sets forth the balance sheet of Minnesota
        Brewing Company as of March 31, 1996 and December 31, 1995.  The
        balance sheet as of March 31, 1996 is unaudited.  The balance sheet
        as of December 31, 1995 is derived from the Company's audited
        balance sheet as of that date.
        
                                                 March 31,   December 31,
                                                   1996          1995
        
        Working Capital                         $5,886,936    $6,327,913
        Total Assets                            12,712,399    12,189,503
        Current Liabilities                      2,446,861     1,419,591
        Long Term Debt -- Net                    1,930,965     1,982,428
        Shareholders' Equity                     8,334,573     8,787,484


        
            Minnesota Brewing Company operates a full-scale brewery in St.
        Paul, Minn., where it produces its Pig's Eye, Grain Belt, Premium
        and Landmark beers and provides contract brewing and packaging for
        third parties.

        
            The Company's Common Stock is traded on the Nasdaq Small Cap
        Market under the symbol "MBRW."
       


        CONTACT:  Richard McMahon, President of Minnesota Brewing Company,
        612-228-9173



SEVEN-UP/RC BOTTLING COMPANY OF SOUTHERN CALIFORNIA, INC. COMMENCES
        PRE-NEGOTIATED CHAPTER 11 CASE
        


VERNON, Calif., May 13, 1996 - Seven-Up/RC
Bottling
        Company of Southern California, Inc.
today announced that it has
        filed a voluntary petition under Chapter 11 of the United States
        Bankruptcy Code in the Bankruptcy Court for the District of
        Delaware.  The Company said it filed its Chapter 11 case because it
        is the most efficient way of consummating the restructuring
        agreement the Company entered into with the unofficial committee
        (the "Bondholders! Committee") of the holders of the Company's 11.5%
        Senior Secured Notes due 1999 ($140 million principal amount) back
        in November 1995. The restructuring agreement called for, among
        other things, the exchange of the Senior Secured Notes for
        approximately 98% of the Company's equity and the sale of the
        Company's Puerto Rico subsidiary.  On May 6, 1996, the Company
        announced that it had entered into an agreement to sell the stock of
        its Puerto Rico subsidiary to an investor group led by Center Street
        Capital Partners, L.P. for a total consideration of approximately
        $74 million. The Company has secured a $54 million debtor-in-
        possession financing commitment from GE Capital Corporation.
        Subject to court approval, these funds will enable the Company to
        meet future inventory needs and to fulfill obligations associated
        with operating its business, including the prompt payment of new
        supplier invoices.
        


            The Company announced that it has already prepared a plan of
        reorganization - which provides that its trade creditors will be
        paid in full and which has the support of both the Bondholders'
        Committee and the Company's working capital lender, GE Capital
        Corporation.  Bart Brodkin, the CEO of the Company, commented that
        "because the Company has the support of the Bondholders Committee
        and GE Capital, the Company expects the Chapter 11 case to proceed
        smoothly and come to a conclusion in only a few months."
        


            Bart Brodkin also commented that the Company's performance has
        improved significantly because of its recent restructuring efforts.
        "On the operational side, the Company's restructuring efforts are
        paying off.  Sales volumes have stabilized, and margins are
        improving - a result of disciplined pricing and marketing and
        favorable raw material costs.  Most significantly, we have improved
        productivity in all cost centers."
        


            Seven-Up/RC Bottling Company of Southern California, Inc., is
        one of the largest independent manufacturers and distributors of
        beverage products in the United States, with annual sales (exclusive
        of its Puerto Rico subsidiary) of $314 million in the fiscal year
        ending December 31, 1995.
        


        CONTACT: Edward Whiting of Whitman Heffernan Rhein & Co., financial
        advisor to Seven-Up/RC Bottling Company of Southern California,
        Inc., 213-267-6233



Grossman's releases first quarter results and
        balance sheets
        


CANTON, Mass. -- May 13, 1996 -- Grossman's Inc.
        (NASDAQ-GROS) released consolidated balance sheets as of March 31,
        1996 and statements of operations for the three months ended March
        1996.  
        


            The 1996 first quarter results included a restructuring charge
        of $40.2 million related to severance costs, lease payments,
        inventory liquidation costs, other expenses and the net
        unrecoverable amount of property, plant and equipment.  Under the
        reorganization and refinancing plan, the Company's 60 Grossman's
        stores, located in eight Northeastern states, were closed.  In
        addition, four transactions were undertaken to improve liquidity.
        The $15.8 million note receivable from Kmart Corporation was sold in
        March 1996.  The Company's 14% Debentures due January 1996 were
        refinanced, with cash and notes issued in April 1996.  A $33.0
        million mortgage loan secured by owned properties was obtained, with
        funding occurring in April 1996.  A new $50 million long-term
        revolving credit agreement, with increased borrowing availability,
        was obtained beginning in May 1996.  
        


            The Company also commented that sales and operating results in
        1996 were and will continue to be affected by inventory supply
        problems and out-of-stock situations.  Following the announcement of
        the refinancing plan, management has focused on reestablishing
        vendor relationships, including timely payment to all vendors,
        rectifying inventory shortages, and reestablishing customer
        relationships which were strained due to these shortages.  However,
        sales and results of operations throughout the second quarter will
        be hindered by the lingering effects of these difficulties.  
        


            Sales from ongoing operations for the three months ended March
        1996 totalled $65.0 million, 5.9% above the $61.4 million for the
        same period in 1995.  Comparable store sales for the three months
        ended March 1996 were 5.2% below the 1995 level.  
        


            Grossman's operates 16 stores under the name Contractors'
        Warehouse in California, Indiana, Kentucky, Nevada and Ohio, and 24
        stores under the name Mr. 2nd's Bargain Outlet in Massachusetts, New
        York and Rhode Island.  
        



                           Grossman's Inc.
                Consolidated Statements of Operations
                (in thousands, except per share data)
                             (Unaudited)
         
         
                                             Three Months Ended
                                                 March 31,      
                                             ------------------
                                               1996      1995   
                                               ----      ----   
         
        SALES                                    $112,981  $126,770   
        COST OF SALES                              86,481    95,777   
                                             --------- ---------  
          Gross Profit                             26,500    30,993   
         
        OPERATING EXPENSES
          Selling and administrative               38,034    38,088   
          Depreciation and amortization             1,849     3,011   
          Store closing expense                    40,150        -    
          Store preopening expense                    361       135   
                                             --------- ---------       
          
                                               80,394    41,234   
                                             --------- ---------  
        OPERATING LOSS                            (53,894)  (10,241)       
                  
        OTHER EXPENSES (INCOME)
          Interest expense                          1,620     2,197    
          Net gain on disposals of
           property                                   (27)      (46)  
          Other                                    (1,008)     (732)  
                                             --------- ---------  
                                                  585     1,419    
                                             --------- ---------  
        EQUITY IN NET LOSS OF
         UNCONSOLIDATED AFFILIATE                     208       198    
                                             --------- ---------  
        LOSS BEFORE INCOME TAXES                  (54,687)  (11,858)  
        CREDIT FOR INCOME TAXES                        -     (1,186)   
                                             --------- ---------  
        NET LOSS                                 $(54,687) $(10,672)  
                                                 
        NET LOSS PER COMMON SHARE
          (PRIMARY AND FULLY DILUTED)            $  (2.10) $  (0.41)   
                                                   
        WEIGHTED AVERAGE SHARES AND
         EQUIVALENT SHARES OUTSTANDING
         (PRIMARY AND FULLY DILUTED)               26,089    25,782   
                                              
        

                        Grossman's Inc.
                  Consolidated Balance Sheets
                        (in thousands)
                         (Unaudited)
                                                            
                                    March 31,  December 31,  March 31,
                                      1996         1995        1995
                                    ---------  ------------  ---------
        ASSETS                       
                                   
        CURRENT ASSETS
        Cash and cash equivalents       $  1,745    $  2,536      $    917
        Receivables, net                  20,604      23,940        14,529
        Inventories                       53,106     102,009       124,890
        Note receivable, net                  -       13,000            -
        Property held for sale             4,500       2,572         7,152
        Other current assets               2,852       3,940         3,015
                                    --------    --------      --------
         Total current assets             82,807     147,997       150,503
         
        PROPERTY, PLANT AND          
         EQUIPMENT, NET                   50,955      94,256       103,695
        PROPERTY HELD FOR SALE            31,294          -             -
        INVESTMENT IN AND ADVANCES
         TO UNCONSOLIDATED
         AFFILIATE                           100         108         1,020
        OTHER ASSETS                       1,088       1,168         1,413
                                    --------    --------      --------
           TOTAL ASSETS                 $166,244    $243,529      $256,631
                                               
         
        LIABILITIES AND
        STOCKHOLDERS' INVESTMENT
         
        CURRENT LIABILITIES
        Accounts payable and
         accrued liabilities            $ 97,040    $ 91,308      $ 92,137
        Accrued interest                   1,829       1,403           696
        Current portion of
         long-term debt and
         capital lease obligations
           14% Debentures, paid
        April 1996                    16,201      16,201        16,201
           Mortgage notes, paid
        April 1996                     3,419         385           221
           Other notes and capital
        lease obligations              3,366       3,859        11,335
                                    --------    --------      --------
         Total current liabilities       121,855     113,156       120,590
         
        REVOLVING TERM NOTE PAYABLE           68      32,844        41,252
        LONG-TERM DEBT AND CAPITAL
         LEASE OBLIGATIONS                 2,002       5,668         9,721
        PENSION LIABILITY                  8,206       8,270         3,827
        OTHER LIABILITIES                 15,005       9,796        12,131
                                    --------    --------      --------
          Total Liabilities              147,136     169,734       187,521
         
        STOCKHOLDERS' INVESTMENT          19,108      73,795        69,110
                                    --------    --------      --------
        TOTAL LIABILITIES AND        
         STOCKHOLDERS' INVESTMENT       $166,244    $243,529      $256,631
                                              

CONTACT:  Grossman's Inc.
                  Steven L. Shapiro, 617/830-4020
        

USTrails Inc. announces third quarter results
        


DALLAS, TX -- May 13, 1996 -- USTrails Inc. (OTC:USTQ)
        today reported results for the three and nine month periods ended
        March 31, 1996.  
        


            For the three months ended March 31, 1996, USTrails reported net
        income of $8.0 million or $2.17 per share on revenues of $26.3
        million, compared with net income of $196,000 or $.05 per share on
        revenues of $23.2 million for the same period last year.  For the
        nine months ended March 31, 1996, USTrails reported net income of
        $6.2 million or $1.66 per share on revenues of $70.0 million,
        compared with a net loss of $5.7 million or $1.55 per share on
        revenues of $68.6 million for the same period last year.  
        


            The results for the current three and nine month periods include
        a $1.4 million extraordinary gain on the repurchase of Secured
        Notes, and $4.7 million of nonrecurring income consisting of $4.1
        million from a net reduction in the allowance for doubtful accounts
        related to contracts and dues receivable, and $568,000 from the
        reversal of a contingent liability.  
        


            The current three and nine month periods also include gains on
        asset dispositions of $3.1 million and $4.0 million, respectively,
        and restructuring costs of $79,000 related to the company's current
        efforts to recapitalize or reorganize.  The results for the prior
        three and nine month periods include $3.7 million of nonrecurring
        income consisting of $2.7 million from the reversal of a contingent
        liability and $1.0 million from reductions in the allowances for
        doubtful accounts and collection costs.  The prior three and nine
        month periods also include gains on asset dispositions of $21,000
        and $499,000, respectively, and restructuring costs of $18,000 and
        $573,000, respectively, related to the relocation of certain
        administrative functions to Dallas, Texas.  
        


            Excluding the extraordinary gain, nonrecurring income, gains on
        asset dispositions, and restructuring costs, the company would have
        had a net loss of $1.1 million for the three months ended March 31,
        1996, compared with a net loss of $3.5 million for the same period
        last year.  Excluding these same items, the company would have has a
        net loss of $3.9 million for the nine months ended March 31, 1996,
        compared with a net loss of $9.4 million for same period last year.
        The improvement in the current three and nine month periods was due
        primarily to decreases in expenses, principally campground operating
        costs, general and administrative expenses and interest.  
        


            As previously disclosed, based on its current business plan,
        USTrails believes that a recapitalization or reorganization of the
        company and its subsidiaries will be required by no later than
        fiscal 1997 to address the mandatory redemptions and maturity of the
        company's 12 percent Secured Notes due 1998.  USTrails and a
        committee (the "Committee") of certain holders of the Secured Notes
        have jointly retained a financial advisor to advise them on
        recapitalization and reorganization alternatives for USTrails.
        UsTrails intends to attempt to negotiate a recapitalization or
        reorganization with the Committee; however, there is no assurance
        that it will be able to reach any agreement with the Committee.  
        


            USTrails, through its subsidiaries Thousand Trails, Inc. and
        National American Corporation (NACO), owns and operates a system of
        58 membership- based campgrounds, which is one of the largest
        private campground systems in the United States.  USTrails also
        manages timeshare facilities and owns certain real estate at eight
        full service resorts and provides a reciprocal use program for
        members of approximately 330 recreational facilities.  
        


CONTACT:  USTrails Inc. -
                  Harry J. White Jr., 214/243-2228
        



Coastal Physician Group, Inc. delays release of first quarter operating results
        


DURHAM, N.C. -- May 13, 1996 -- Coastal Physician
        Group, Inc. (NYSE: DR) today announced that it will delay the
        release of operating results for the first quarter ended March 31,
        1996.  Pursuant to a commitment letter recently issued by Coastal's
        bank lenders, the Company is engaged in finalizing loan documents in
        order to complete a definitive agreement to restructure its credit
        facilities by the end of May.  This has resulted in extraordinary
        demands upon the time and attention of senior management.
        


            "This has been a longer process than originally anticipated, and
        we are optimistic about the progress we've made thus far," said
        Steven M. Scott, M.D. chief executive officer of Coastal Physician
        Group, Inc.  "With the execution of the commitment letter on May
        9th, we look forward to concluding the loan agreement within the
        next couple of weeks, and hope to announce our operating results
        soon."
        


            The Company previously indicated it would report a net operating
        loss for the first quarter. Following a review of preliminary
        financial results, management expects the net loss for the first
        three months of 1996 to be greater than Wall Street analysts'
        estimates.
        


            Coastal Physician Group, Inc. is a diversified physician
        management company which provides a broad range of health care and
        administrative services to physicians, hospitals, employers, managed
        care programs and other health care providers.
        


CONTACT: Coastal Physician Group, Inc., Durham -
                 Robert P. Borchert, 919/383-0355