TCR_Public/960514.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - May 14, 1996



  1. Sea Containers reports first quarter breakeven
  2. EXECUTONE Information Systems, Inc. Announces First Quarter Results
  3. Celadon and Burlington announce letter of intent
  4. NEW ERA'S BENNETT BARRED FROM ROLES WITH PA. CHARITIES
  5. FRETTER ANNOUNCES $222 MILLION FISCAL YEAR LOSS




Sea Containers reports first quarter breakeven, a $5.8 million
improvement over 1995
        


            HAMILTON, Bermuda -- May 14, 1996 -- Sea Containers
        Ltd., marine container lessor, ferry, train and port operator and
        leisure industry investor, today reported its results for the first
        quarter ended March 31, 1996.  For the period net earnings were
        breakeven before preferred share dividends (loss of $0.34 per common
        share) on revenue of $105.3 million, compared with a loss of $5.8
        million before preferred sshare dividends (loss of $0.88 per common
        share) on revenue of $98.0 million in the first quarter of 1995.
        The first quarter is traditionally a period of poor profitability
        due to the seasonality of the company's ferry, port and hotel
        businesses.  

        
            Operating profits from marine container leasing increased 10%
        over the first quarter of 1995 to $21.8 million, ferry and port
        operations recorded a 7% reduced loss to $4.1 million and leisure
        operating profits were up 81% to $2.9 million, due primarily to
        inclusion of the Charleston Place and '21' Club properties for the
        first time, combined with improved performance from the Mount Nelson
        Hotel in Cape Town, South Africa.  The peak summer period for Cape
        Town is the first quarter.  
   

     
            Net finance costs in this year's first quarter were down 14% to
        $20.3 million as a result of debt reduction in 1995 and lower
        interest rates.  The net loss per common share was down 61% to $0.34
        from $0.88 in the first quarter of 1995.  
      

  
            Mr.  James B.  Sherwood, President, said that the InterCity East
        Coast Ltd.  rail franchise had been taken over by the company's
        Ferry, Train and Port Division on April 28, 1996.  The second
        quarter will therefore benefit from incorporation of two months of
        these operations.  He said he had just completed an inspection of
        the northern half of the rail network and is convinced there is
        great potential to expand this business.  Telesales are showing
        exponential growth.  This system allows passengers to order tickets
        by phone with credit card payment and the tickets mailed to the
        traveller or made available for instant pickup at a special counter
        at the departure station.  All tickets have seats pre-assigned
        according to customer request.  He said that the railway is already
        so popular that one of the first tasks will be to try and reschedule
        trains so more journeys can be made with the existing 40 train sets.
        Trains are already operating to capacity in peak periods.  He said
        that he had been most favorably impressed with the work force which,
        now released from the shackles of state ownership, is brimming with
        ideas and enthusiasm.  
        


            Mr.  Sherwood said that profits from marine container leasing
        had been held back in the first quarter due to bankruptcy of ABC
        Line and heavy returns from a South American lessor which is exiting
        the shipping business.  The impact of these events is likely to
        continue through the second quarter as the equipment is turned
        around and re-leased.  
        


            He announced, as part of the Container Division's program to
        expand its interest in fruit farming, that the Manicoba Grape Farm
        near Petrolina, Brazil, had been acquired on April 29, 1996.  This
        farm produces two crops, primarily of white Italia grapes, each year
        for sale on the domestic and export markets.  In all other grape
        growing regions of the world only one crop per annum is achieved.
        The farm covers 270 hectares of which 79 hectares of grapes are in
        production, with a current output of 2,100 tons annually.  

        
            Mr.  Sherwood indicated the Container Division was seeking to
        make additional investments in fruit farming in the region, which
        has a semi-arid climate, 365 days of sunshine a year, high daytime
        temperatures and water from the large San Francisco River.  
   

     
            He said that performance of the company's Hoverspeed subsidiary,
        which operates fast ferry services across the English Channel, had
        improved significantly over the prior year despite increasing
        competition from Eurotunnel.  Day trip shoppers prefer the speed and
        convenience of Hoverspeed over the slow conventional ferries.
        Vehicle carryings were up 95% and passengers 180%.  More sailings
        were operated than in the prior year to meet demand.  
      

  
            The Color SeaCat joint venture high speed ferry service between
        Denmark and Norway was successfully inaugurated on April 30th.  

        
            The company's offer to acquire the remaining shares in the Isle
        of Man Steam Packet Company was mailed to Steam Packet shareholders
        on April 26th and the first closing for acceptances will be on May
        17th.  
   

     
            The company's 1995 Annual Report to Shareholders has now been
        mailed, along with Proxy Statements, for use at the annual meeting
        of shareholders to be held at '21' Club (which is owned by the
        company), 21 West 52nd Street, New York City at 2 p.m.  on Tuesday,
        June 4, 1996.


        
                  SEA CONTAINERS LTD. AND SUBSIDIARIES
                SUMMARY OF OPERATING RESULTS (UNAUDITED)
        
                                  Three months ended
                                       March 31,        
                                  1996            1995
        
        Container  asset  rental
         and sales revenue       $  53,723,000  $  53,121,000
        Ferry and Port operations
           revenue                  19,905,000     19,837,000
        Leisure  operations revenue 28,745,000     22,275,000
        Other revenue                2,966,000      2,782,000
        Total revenue             $105,339,000   $ 98,015,000
        Earnings/(losses)
         before finance
         costs and income taxes:
        Container  asset rental
         and sales               $  21,782,000   $ 19,834,000
        Ferry and Port operations   (4,148,000)    (4,484,000)
        Leisure operations           2,901,000      1,600,000
        Other                           68,000        313,000
                                20,603,000     17,263,000
        Corporate costs             (3,348,000)    (3,285,000)
        Net finance costs          (20,295,000)   (23,727,000)
        Losses before income taxes  (3,040,000)    (9,749,000)
        Provision for income taxes  (3,050,000)    (3,955,000)
        Net earnings/(losses)           10,000     (5,794,000)
        Preferred share dividends   (3,896,000)    (3,932,000)
        Net losses on class A and
         class B common shares   $  (3,886,000)   $(9,726,000)
        Net losses per class A and
         class B common share:
        Primary                  $       (0.34)   $     (0.88)
        Fully diluted            $          -     $        -
        Weighted average number of
         class A and class B common shares:
        Primary                     11,361,780     11,058,056
        Fully diluted                       -              -
        
                        SEA CONTAINERS LTD. AND SUBSIDIARIES
                  CONSOLIDATED AND CONDENSED BALANCE SHEETS
                                   (UNAUDITED)
        
                                  March 31,      December 31,
                                     1996           1995
        
        Containers, Cranes, Chassis
         and Ships, net book value $  867,791,000  $ 879,149,000
        Real estate and other
         fixed assets, net
         book value                   420,804,000    414,382,000
        Assets under capital leases, net
         book value                    32,076,000     33,073,000
        Cash                           64,850,000     63,567,000
        Receivables                   198,666,000    193,550,000
        Inventories                    23,122,000     23,898,000
        Investments                    49,318,000     48,320,000
        Other assets                   60,166,000     55,421,000
                               $1,716,793,000 $1,711,360,000
        
        Liabilities with respect
         to Containers,
         Chassis and Ships        $   647,613,000  $ 641,053,000
        Bank loans with respect to
         real estate and
         other fixed assets           207,528,000    181,608,000
        Obligations under capital
         leases                        28,312,000     29,320,000
        Other liabilities             204,353,000    223,373,000
        9-1/2% senior notes           100,000,000    100,000,000
        12-1/2% senior subordinated
         debentures                   123,213,000    123,161,000
        10-1/4% subordinated
         debentures                    16,000,000     16,000,000
        Redeemable preferred shares    55,224,000     55,224,000
        Shareholders' equity          725,811,000    732,882,000
        Class B common shares with voting
         rights owned by subsidiaries (391,261,000) (391,261,000)
                               $1,716,793,000 $1,711,360,000


        CONTACT: Jennifer Hawkins
                 Sea Containers America Inc.
                 212/302-5066
                      or
                 William W. Galvin
                 212/838-5454




EXECUTONE Information Systems, Inc. Announces First Quarter Results

        
            MILFORD, Conn. -- May 14, 1996 -- EXECUTONE
        Information Systems, Inc. (NASDAQ:XTON) today announced revenues for
        the first quarter ended March 31, 1996, of $67.0 million, a decrease
        of $3.8 million, or 5.4%, compared to revenues of $70.8 million for
        the quarter ended March 31,1995.  The Company reported a loss of
        $2.5 million for the quarter, or $.05 per share, compared to net
        income of $ 0.1 million, or $0.0 per share, in the first quarter of
        1995.  
        


            Alan Kessman, President and CEO, stated, "The first quarter
        results were adversely affected by two factors.  First, the
        previously announced negotiations with the group led by Bain
        Capital, Inc. to sell the Company's Computer Telephony Direct Sales
        and Service operations and its Long Distance reseller business
        extended longer than expected.  This, combined with the uncertainty
        associated with the transaction, prevented the Company from
        implementing some of its planned strategic initiatives including
        certain cost savings actions which are now being implemented.
        Second, due to product issues affecting the videoconferencing
        division and negotiations with GPT, the equipment supplier, the
        Company experienced revenue shortfalls and absorbed operating losses
        for the videoconferencing division which were not planned for.
        Since the close of the quarter, EXECUTONE has made significant
        progress in dealing with both issues."

        
            Kessman continued, "The Company is now in the process of
        restructuring our management organization and streamlining its
        operations.  The initiatives have begun and the process is expected
        to continue throughout the quarter.  The net anticipated result is
        that the Company expects to realize approximately $2.0 million per
        quarter of cost savings beginning in the third quarter."  
   

     
            The transaction with Bain Capital, Inc.  is expected to close on
        May 30, 1996.  The agreed purchase price is $67.4 million dollars,
        of which $61.5 million is in cash.  This will enable Executone to
        eliminate its long-term bank debt, fund additional research and
        development, and invest in sales and marketing.  
      

  
            To address the problems in the videoconferencing division, the
        Company initiated two actions.  First, it terminated its
        distribution agreement with GPT.  The Company is awaiting the result
        of a 30-day discussion period pursuant to its contract with GPT
        before it initiates other actions for recovery of losses incurred
        due to GPT's failure to deliver satisfactory videoconferencing
        product under the contract.  

        
            The Company also announced today that it has entered into a
        memorandum of understanding to transfer elements of its
        videoconferencing business to BT Visual Images L.L.C. (BTVI).  Final
        terms for the BTVI transaction are currently being incorporated in a
        definitive agreement.  These terms provide for the possible transfer
        of certain employees and inventory to BTVI, as well as compensation
        to Executone for maintenance revenue and commissions on future
        sales.
   

     
            EXECUTONE Information Systems, Inc. develops, markets and
        supports voice and data processing systems and health care
        communications systems.  Products and services include telephone
        systems, voice mail systems, in-bound and outbound call center
        systems, specialized healthcare communications systems and
        application consulting services.  Products and services are sold
        under the EXECUTONE, INFOSTAR, IDS, LIFESAVER and INFOSTAR/ILS brand
        names.  


        
                          Executone Information Systems Inc.
                        Consolidated Statements of Operations
                                     (unaudited)
                      (in thousands, except per share amounts)
                                                     
                                            Three Months Ended
                                                 March 31,
                                           1996            1995
        
        Revenues
         Product                             $ 30,243        $ 31,948
         Base                                  36,723          38,860
                                          --------        --------
                                           66,966          70,808
        
        Cost of revenues                       40,486          42,459
         Gross profit                          26,480          28,349
        
        Operating expenses:
         Product development and
          engineering                           3,764           3,707
         Selling, general and
          administrative                       26,274          23,804
                                          --------        --------
                                           30,038          27,511
        
        Operating income (loss)                (3,558)            838
        Interest and other expenses, net          592             638
        Income (loss) before income taxes      (4,150)            200
        Provision (benefit) for income taxes   (1,660)             80
        Net income (loss)                     $(2,490)          $ 120
        Earnings (loss) per share             $ (0.05)          $ .00
        Weighted shares of common stock
         and equivalents outstanding           51,853          48,838
        
                                       Executone Information Systems Inc.
                                            Consolidated Balance Sheets
        
                                             March 31,        Dec. 31,
        (In Thousands)                             1996             1995
                                            (Unaudited)
        Assets
        Current Assets
         Cash and cash equivalents                $6,280           $8,092
         Accounts receivable, net                 43,718           48,531
         Inventories                              36,380           32,765
         Prepaid expenses and other current assets 4,587            6,584
           Total current assets                   90,965           95,972
        
        Property & equipment, net                 18,781           18,462
        Intangible assets, net                    19,990           20,022
        Deferred taxes                            31,376           29,616
        Other assets                               3,199            3,772
           Total assets                         $164,311         $167,844
        
        Liabilities and stockholders' equity
        Current liabilities
         Current portion of long-term debt      $    938         $   932
         Accounts payable                         30,869          30,676
         Accrued payroll and related costs         8,558           6,870
         Accrued liabilities                       9,218          11,851
         Deferred revenue and customer deposits   20,409          19,781
         Total current liabilities            69,992          70,110
        Long-term debt                            28,879          29,829
        Long-term deferred revenue                 2,780           2,805
                                             101,651         102,744
        
        Stockholders' Equity
         Common stock                                519             517
         Preferred stock                           7,300           7,300
         Additional paid-in capital               79,716          79,668
         Retained earnings (deficit)             (24,875)        (22,385)
        Total stockholders' equity            62,660          65,100
        Total liabilities and equity        $164,311        $167,844


        CONTACT: Direct inquiries to:
                 Dave Krietzberg (203) 876-7600



Celadon and Burlington announce letter of intent


            INDIANAPOLIS, IN -- May 14, 1996 -- href="chap11.burlington.html">Burlington Motor
        Holdings Inc.
including its operating affiliates and The Celadon
        Group (CLDN:NASDAQ) today jointly announced the execution of a
        letter of intent for Celadon to acquire a substantial portion of
        Burlington's operating assets and business.
        


            Celadon intends to acquire approximately 1,400 tractors and
        approximately 4,000 trailers as part of the purchase.  Celadon will
        need Burlington's drivers and a large number of its other employees.
        The acquisition is contingent upon satisfactory due diligence
        investigation, final documentation, and approval of a plan of
        reorganization in Burlington's chapter 11 cases.  Celadon will
        provide management advisory services to Burlington until
        execution of a definitive agreement, at which time, subject to
        bankruptcy court approval, the Burlington and Celadon management
        teams will combine to manage operations until completion of the
        acquisition which is expected to take approximately three months.
        


            Ralph Arthur, president of Burlington, stated that the Celadon
        transaction provided "the highest and best proposal for Burlington's
        creditors, and will allow Burlington as part of Celadon to continue
        its track record of providing the highest level of excellent service
        to its customers.  We believe our customers and creditors will be
        fully supportive of this transaction."

        
            Len Bennett, president of Celadon stated that "Celadon believes
        that Burlington's strong relationships with domestic shippers makes
        Burlington a perfect fit with Celadon's existing programs in Mexico
        and Canada and will allow Celadon to achieve significant economies
        of scale."
   

     
            Celadon is headquartered in Indianapolis while Burlington is
        located approximately 40 miles away.
      


        CONTACT: Celadon Group
                 Len Bennett, 317/972-7002
                 Don S. Snyder, 317/972-7033
                     or
                 Burlington Motor Holdings Inc.
                 James G. Overley, 317/378-4119




PENNSYLVANIA ATTORNEY GENERAL:  BENNETT BARRED FROM ROLES WITH PA.
CHARITIES UNDER AGREEMENT

        
            HARRISBURG, Pa., May 14, 1996 - The founder of the
        bankrupt Foundation for New Era
Philanthropy
is barred from serving
        in a significant role for any charity in Pennsylvania under a
        Commonwealth Court agreement announced today by Attorney General Tom
        Corbett.

        
            "This agreement means that John G. Bennett Jr. cannot be an
        administrator, a fund-raiser, a consultant, or even a clerical
        worker for any charity in the Commonwealth in the future," Corbett
        said.
   

     
            The Attorney General's office sued Bennett and his Foundation
        for New Era Philanthropy in Commonwealth Court last May, a day after
        Radnor-based New Era filed for bankruptcy, owing millions of dollars
        to individuals and nonprofit groups.  The suit charged that the
        defendants defrauded many of the charitable institutions they
        promised to help.
      

  
            The Attorney General's office agreed in June to remove New Era
        as a defendant, saying that forcing New Era to litigate the suit
        would deplete funds that ultimately can be used by the Bankruptcy
        Court for restitution to charities that lost their investments.

        
            The office announced in July that it was joining with the U.S.
        Attorney's Office for the Eastern District of Pennsylvania in a
        criminal investigation of the New Era collapse.  That investigation
        is continuing, Corbett said.
   

     
            The New Era liquidation in U.S. Bankruptcy Court is under the
        direction of permanent trustee Arlin M. Adams, who is collecting New
        Era's assets.
      

  
            A bankruptcy judge recently approved a settlement under which
        Bennett will surrender to the trustee cash and property worth about
        $1.2 million - virtually everything Bennett owns.
        


            Neither the bankruptcy court settlement nor Corbett's settlement
        protects Bennett from criminal prosecution or from suits by other
        parties.
        


            The Attorney General's settlement was negotiated by Chief Deputy
        Attorney General Janice L. Anderson and Senior Deputy Attorney
        General Mary Beth O'Hara Osborne of the Attorney General's
        Charitable Trusts and Organizations Section.
        


            The settlement permanently enjoins Bennett from all of the
        following in connection with charitable organizations or nonprofit
        corporations in Pennsylvania:


            Anderson said Bennett is not barred from serving as a volunteer
        for a charity, provided he is not involved in any of the prohibited
        activities.
        


            Under terms of the settlement, Bennett "disputes the
        allegations" contained in the Attorney General's suit.
        


        CONTACT:  Jack Lewis, Press Secretary of the Office of Attorney
        General, 717-787-5211, or home, 717-657-9840
        




FRETTER ANNOUNCES $222 MILLION FISCAL YEAR LOSS

       
            BRIGHTON, Mich., May 14, 1996 - href="chap11.fretter.html">Fretter, Inc., (OTC
        Bulletin Board: FTTR) announces record loss of $222,000,000 ($21.02
        per share) on sales of $502,317,000 for fiscal year ended January
        31, 1996.  Such sales and loss reflect the inclusion of the
        Company's wholly owned subsidiaries, principally Dixons U.S.
        Holdings, Inc., which is the former Silo consumer electronics and
        appliance store chain.  Dixons U.S. Holdings, Inc. and its
        subsidiaries filed for voluntary Chapter 11 Bankruptcy proceedings
        on December 4, 1995.  Of the losses suffered by the Company,
        $200,000,000 is attributable to the Dixons U.S. Holdings, Inc.
        operations.

        
            Fretter also announces that the Company has closed its stores,
        and those of its subsidiaries in all markets except for Metropolitan
        Detroit, Michigan where it currently operates ten retail consumer
        electronic and appliance stores.  Given the Company's significant
        operational losses, its significant curtailment of operating
        activities, its working capital deficiency and limited financing,
        the Company has applied for going out of business permits in each
        municipality in which it currently operates stores and currently
        intends to institute going out of business sales in each of its
        remaining stores.
   

     
            Fretter continues to explore alternative retail marketing
        concepts involving substantially larger retail stores, both in
        relation to existing Fretter stores and those of its major
        competitors.  The ability of the Company to exploit this new retail
        concept is dependent on a number of factors, including feasibility
        of such store format; reversing the Company's lack of liquidity;
        developing new sources of financing for inventory and capital
        improvements; and favorable resolution of significant litigation
        matters - principally related to the Dixons bankruptcies.
        Accordingly, the Company likely will either restrict its business to
        the leasing and sale of its remaining portfolio of owned real estate
        or seek protection under the United States Bankruptcy Code to either
        liquidate its remaining assets in partial satisfaction of its
        creditors' claims or to restructure its debts and restrict its
        business to the leasing and sale of its real estate holdings.
      

  
            The following is a summary of selected financial data for the
        Company for its most recent five fiscal years.  The Company today
        filed with the United Sates Securities and Exchange Commission its
        Annual Report on Form 10-K which may be consulted for a more
        complete description of the Company and its financial condition.
        



                                        Twelve Months Ended
                        (Dollar amounts in thousands except per share data)
        
                          Jan. 31    Jan. 31    Jan. 31    Jan. 31   Jan. 31
                            1996       1995        1994       1993      1992
        
        Net sales         $502,317   $858,849   $545,508  $361,603  $292,698
        Net (loss)
          earnings available
          for common
          shareholders   $(222,367)    $3,665    $(1,096)   $5,719    $4,003
        (Loss) earnings
          per common
          share            $(21.02)      $.35      $(.14)     $.77      $.55
        Total assets      $101,514   $468,608   $456,802  $177,131  $164,431
        Short-term
          obligations      $48,459     $4,601       $590      $534    $1,577
        Long-term
          obligations less
          current portion $42,045   $145,961     $88,584   $40,939   $41,302
        Shareholders'
          equity
          (deficit)     $(188,308)   $34,359     $30,994   $64,019   $57,307

        
        CONTACT:  Dale Campbell of Fretter, 810-220-5178