Bankruptcy News For - May 21, 1996

  1. Leslie Fay reports results for 1996 first quarter
  2. LogiMetrics reports significant fiscal third quarter loss

Leslie Fay reports results for 1996 first quarter

            NEW YORK -- May 21, 1996 -- The Leslie Fay
        Companies Inc.
today reported improved financial results for the
        first quarter of fiscal 1996 as compared with the same period in

            For the 13 weeks ended March 30, 1996, Leslie Fay reported an
        operating profit of $7.4 million, compared with an operating loss of
        $0.7 million in the first quarter of 1995.  This improvement was the
        result of actions Leslie Fay has undertaken to reduce overhead and
        other corporate expenses and to strengthen gross profit by reducing
        markdowns and production costs.  As a result of these actions, the
        company's "Selling, warehouse, general and administrative expenses"
        decreased to 18.1 percent in the first quarter of 1996 from 20.9
        percent a year ago.  Likewise, gross profit was 24.5 percent of net
        sales in the 1996 first quarter, compared with 20.5 percent in the
        first quarter of 1995.  

            Leslie Fay's net sales in the first quarter of 1996 were $121.2
        million, compared with $132.9 million in the same period a year ago.
        Contributing to this decrease were the company's decisions in the
        second half of 1995 to close its Leslie Fay retail store division,
        discontinue certain other labels and redirect the company's selling
        efforts away from unprofitable customers.  

            After reorganization costs, interest and financing costs, and
        taxes, Leslie Fay reported net income of $5.9 million, or $0.32 per
        share, in the 1996 first quarter, compared with a net loss of $3.4
        million, or $0.18 per share, in the same quarter a year ago.  

            As previously announced, Leslie Fay and the Official Committee
        of Unsecured Creditors of Leslie Fay are in the process of jointly
        developing an amended plan of reorganization that would provide for
        the company to emerge from chapter 11 by separating its Sassco
        Fashions business from its core Leslie Fay businesses.  If this
        proposed plan is consummated, Leslie Fay's current equity will be

            John J. Pomerantz, chairman and chief executive officer of
        Leslie Fay, said, "We are pleased by the company's financial
        improvement in the first quarter of 1996.  Consumer response to our
        merchandise lines has been very favorable, and I am confident that
        our efforts to turnaround the business are on the right track."  

            Founded in 1947, The Leslie Fay Companies Inc., is one of the
        nation's leading manufacturers of women's apparel, including
        dresses, suits and sportswear.  Its brand names include Leslie Fay,
        Albert Nipon, Kasper for A.S.L., Castleberry, Outlander, and HUE.

                               (Debtor In Possession)
                      (In thousands, except per share data)
                                           Thirteen Weeks Ended
                                         March 30,        April 1,
                                           1996             1995
        Statement of Operations Data:
        Net Sales                            $121,202         $132,941
        Operating income (loss)                 7,445             (722)
        Income (Loss) before taxes              6,240           (3,123)
        Taxes on Income                           316              274
        Net Income (Loss)                       5,924           (3,397)
        Net income per Share of Common Stock    $0.32           ($0.18)
        Weighted Average Common Shares
          Outstanding                          18,772           18,772
                                           as of            as of
                                         March 30,        Dec. 30,
                                           1996             1995
        Balance Sheet Data:
          Total Assets                       $247,959         $245,980
          Total Liabilities                   397,953          401,888
          Stockholders' Deficit              (149,994)        (155,908)

        CONTACT: James Fingeroth/Michael Freitag
                 Kekst and Company - (212)593-2655


LogiMetrics reports significant fiscal
third quarter loss

            PLAINVIEW, N.Y. -- May 21, 1996 -- LogiMetrics
        Inc. today reported net losses of $2,377,968 and $3,604,126,
        respectively, for the three and nine month periods ended March 31,

            Compared to the same periods last year, the earnings declined
        $2,427,503 and $3,711,328, respectively.  The losses include a non-
        recurring charge in the three month period ended March 31, 1996, of

            Net sales for the three and nine month periods ended March 31,
        1996, were $947,775 and $3,526,633, respectively.  Compared to the
        corresponding prior periods, net sales declined $1,586,579 (63
        percent) and $2,787,545 (44 percent), respectively.  The decline in
        both periods was a direct result of project delays and inactivity
        due to a shortage of cash.

            As previously announced, on March 7 the company was
        recapitalized and new management brought in to lead a restructuring.
        The primary objective of this restructuring is to redirect the
        company's development and marketing focus towards the burgeoning,
        higher value added, communications market.  The quarterly period
        ended March 31, 1996, has been significantly impacted by this change
        in focus as well as the inactivity and other inefficiencies during
        the period preceding the change in control.

            In preparing the quarterly report for the quarterly period ended
        March 31, 1996, new management discovered there had been an error in
        the preparation of the quarterly report for the period ended Dec.
        31, 1995.  The error had the impact of overstating the recognition
        of revenue earned on uncompleted projects during the period by
        $1,610,718.  After adjusting for the impact of the resulting income
        tax benefit, the net reduction in previously reported retained
        earnings is $1,281,718.  On May 20, 1996, the company filed with the
        SEC an amendment to its quarterly report on Form 10-QSB/A to correct
        the overstatement of revenue recognition and amending its
        consolidated financial statements accordingly.

            In the past, LogiMetrics was primarily a supplier of defense
        oriented RF test and simulation equipment.  Effective on change of
        control March 7, the company has been redirecting its focus away
        from defense applications and towards emerging new communication

            Specifically, the company will aggressively pursue new
        transmission equipment requirements arising from government grants,
        around the world, of currently unused radio frequency spectrum.
        Spectrum "winners"  will utilize these grants to deliver video,
        voice and data to consumers via new ultra high frequency microwave
        "wireless"  technologies.  

            These new technologies, together with the clear spectrum grants
        coming, will make possible the swift deployment of a non-cabled
        broad band entertainment and communication system at a fraction of
        the cost of traditional "wired"  systems.  New management believes
        these opportunities far outweigh the company's past focus and are
        complementary with its RF expertise.  

            Richard K. Laird, the newly appointed chairman and CEO, said:
        "LogiMetrics has suffered these last two years from a shortage of
        resources and the attendant distractions.  With new financing now in
        place, the many fine people within the company can now focus on our
        plans to sharply redirect the company's product and market focus
        while, at the same time, restoring the firm's public vigor and
        reputation.  These early changes, and many others planned, will
        propel the company further into the commercial microwave
        communications equipment market and dramatically strengthen it
        financially for the internal and external growth we have planned.
        The coming worldwide spectrum grants coupled with these new delivery
        technologies and LogiMetric's extensive RF experience sets the
        company's stage for a very exciting decade ahead."

        CONTACT:  LogiMetrics Inc., Plainview
                  Richard K. Laird, 516/349-1700, 516/349-8552 (fax)




            TROY, Mich., May 21, 1996 - Floyd Hall, chairman,
        president and CEO of Kmart Corporation (NYSE: KM), said today that
        he is pleased with the company's progress and that Kmart is taking
        actions to become a "fierce competitor" in the growing discount
        retail channel.

            "I am very pleased to report on the enormous progress we have
        made during the past year...and most encouraging, the steps we are
        taking to ensure a true renaissance of Kmart Corporation," Hall said
        in remarks at the company's annual meeting of shareholders in

            Hall noted that the discount channel is growing faster than
        virtually any other part of the U.S. retail market and that this
        $290 billion channel represents approximately 9 percent of the
        market share.

            "Annual growth of 6 to 8 percent is expected for the discount
        segment, as compared to department stores which likely will grow
        only at about 1 percent annually over the next few years," Hall
        said.  "If Kmart just maintains its share of the growing discount
        sector, these sales gains, coupled with our lower expenses, will
        mean very respectable profits."

            "Excellent results, of course, are predicated on our ability to
        leverage the strategic opportunity and distinguish ourselves from
        our best competitors," said Hall.  "We have a market niche, we fit
        it perfectly, and we can be a fierce competitor."

            Hall also told the shareholders that he is pleased with the
        company's recent accomplishments.  In the 12 months since he joined
        Kmart, the company has:

            Hall also noted that the company recently completed a business
        analysis of its in-store pharmacy operations and concluded that they
        are a strong strategic fit and growth business for Kmart.
        Accordingly, the company has ruled out a sale of these operations.

            "We most certainly recognize that it is the responsibility of
        this management team and your Board of Directors to improve the
        performance of the company and create additional value for all of
        our shareholders," Hall said.  "That is why we are committed to
        making certain that the change underway at Kmart permeates every
        aspect of our business and touches every one of our associates with
        a new sense of empowerment, accountability and excellence."

            At today's annual meeting, shareholders elected six members of
        Kmart's Board of Directors:  James B. Adamson, Stephen F.
        Bollenbach, Floyd Hall, Robert D. Kennedy, William P. Weber and
        James O. Welch, Jr.

            Due to an opposing proxy solicitation, a final report on the
        voting cannot be announced until the independent inspectors of
        election tabulate the results.  The report of the independent
        inspectors giving the final results of the votes will be published
        as soon as it is delivered to the Company.  Based on the preliminary
        votes available at the time of the meeting, it appears that
        shareholders approved amendments to Kmart's Directors Stock Plan
        relating to stock compensation for directors and to Kmart's 1992
        Stock Option Plan.  It also appears that stockholders are voting in
        accordance with the Board's recommendations on all stockholder

            Kmart Corporation serves America with 2,159 Kmart and 167
        Builders Square retail outlets.  In addition to serving all 50
        states, Puerto Rico, the U.S. Virgin Islands and Guam, Kmart
        operations extend to Canada and, through joint ventures, to Mexico
        and Singapore.

     CONTACT:  Shawn M. Kahle, Vice President, Corporate Affairs,
        810-643-1021, or Bob Burton, Director, Investor Relations, 810-643-
        1040, both of Kmart



        TROY, Mich., May 21, 1996 - Kmart Corporation
        (NYSE: KM) today reported a loss from continuing operations of
        $38 million, or $0.08 per share, compared with a loss from
        continuing operations of $109 million, or $0.24 per share in the
        first quarter of 1995, before giving effect to the impact of
        discontinued operations and non-recurring activities in 1996 and
        1995, respectively.

        Kmart's net loss for the first quarter of 1996 was $99 million, or
        $0.21 per share.  The first quarter of 1996 included a net charge
        for discontinued operations of $61 million, or $0.13 per share,
        resulting from participation in the recent initial public offering
        of Thrifty PayLess Holdings, Inc. and the revaluation of the
        Company's remaining holding.  This compares to a net loss of
        $28 million, or $0.06 per share, in the first quarter of 1995,
        which included the positive impact of a pension curtailment gain of
        $84 million net of tax, or $0.18 per share, relating to the
        freezing of the Kmart defined benefit pension plan.

        Total sales in the first quarter were $7.580 billion, an increase
        of 1.8% from $7.443 billion for the first quarter of 1995.  Sales
        levels were adversely affected by lower numbers of operating stores
        and colder weather during the period.  The gross margin for the
        first quarter was 21.9% of sales versus 22.2% last year, reflecting
        increased volumes of lower-margin items and consumables in the mix
        of sales.  The selling, general and administrative (SG&A) expense
        ratio for the quarter was 21.9% of sales versus 23.7% for the
        comparable 1995 period.

        Commenting on first quarter results, Floyd Hall, chairman,
        president and chief executive officer, said, "Our overall
        performance for the quarter was on plan.  Sales in our U.S. Kmart
        stores increased 4.5% on a comparable store basis in the first
        quarter, despite weather-related softness around the Easter
        holiday.  Our gross margin rates also felt the effects of cold
        weather on higher-margin seasonal goods, together with ongoing
        promotional activity in the hardlines area."

        "We made major improvements in the area of cost reduction," Hall
        said.  "Our first quarter SG&A expenses were reduced by
        $105 million over last year, reflecting some of the decisions of
        1995, predominantly the closing of unproductive stores and the sale
        of the auto service business.  We expect to see solid progress in
        expense control over the remainder of the year."

        Kmart Corporation serves America with 2,159 Kmart plus 167 Builders
        Square retail outlets and 134 stores internationally.

        Kmart Corporation common stock is listed on the New York, Pacific,
        and Chicago Stock Exchanges.

                              KMART CORPORATION
                13 WEEKS ENDED MAY 1, 1996 AND APRIL 26, 1995

                                                              % Change
                                                            All   Comparable
        (Millions U.S. $)           5-1-96    4-26-95    Stores   Stores (b)
        General Merchandise-
          United States            $  6,692    $ 6,564     2.0       4.5
          International                 283        249     13.7      4.5(a)
        Total General Merchandise     6,975      6,813     2.4       4.5
        Specialty Retail-
          Builders Square               605        630    (4.0)     (0.8)
        Total Kmart                 $ 7,580    $ 7,443     1.8       2.3
        (a) International comparable store sales change is calculated on
            sales in the applicable local currency.
        (b) Comparable store sales are based on the 13 week accounting
            periods ended 5-1-96 and 4-26-95.
                              OPERATING RESULTS
        (Millions U.S. $)           5-1-96    4-26-95      %
        General Merchandise-
          United States (a)           $  58     $   86   (32.6)
          International                  (1)        (5)  (80.0)
        Total General Merchandise        57         81   (29.6)
        Specialty Retail-
          Builders Square                 0       (11)    100.0
        Total Kmart  (a) (b)          $  57    $   70     (18.6)
        (a) 1995 includes $124 million one time gain resulting from pension
        (b) The pretax LIFO charge for the 1996 period was $8 million,
            compared with $7 million for the 1995 first quarter.
                             KMART CORPORATION

                                                13 Weeks   13 Weeks     %
                                                 Ended      Ended     Inc.
        (Amounts in millions, except per share   5-1-96    4-26-95    (Dec)
        Sales                                    $ 7,580    $ 7,443    1.8
        Cost of merchandise sold                   5,921      5,788    2.3
        Gross profit                               1,659      1,655    0.2
        Licensee fees and other income                60         58    3.4
        Selling, general and administrative        1,662      1,767   (5.9)
        Gain on pension curtailment                    -       (124)     -
        Operating income                              57         70  (18.6)
        Interest expense, net                        116        109    6.4
        Loss from continuing retail operations
        before income                               (59)       (39)   51.3
          taxes and equity income
        Equity in net income of unconsolidated        2          2     -
        Income tax benefit                          (19)       (12)   58.3
        Net loss from continuing retail             (38)       (25)   52.0
        Loss from discontinued operations, net         -        (3)     -
        of income taxes
        Loss on disposal of discontinued
        operations, net of                          (61)          -     -
          income taxes
        Net loss                                ($   99)   ($   28)     -
        Loss per common share:
         Continuing retail operations           ($ 0.08)   ($ 0.06)
         Loss from discontinued operations             -   (  0.00)
         Loss on disposal of discontinued       (  0.13)         -
         Net loss                               ($ 0.21)   ($ 0.06)
        Weighted average shares outstanding       482.1      458.8
        .. The consolidated statement of operations for the prior period has
          been restated for discontinued operations.

                              KMART CORPORATION

                                                13 Weeks  13 Weeks
                                                 Ended      Ended
        (Amounts in millions)                    5-1-96    4-26-95
        Cash Flows From Operating Activities:
        Loss from continuing retail operations     $(38)     $(25)
        Adjustments to reconcile net loss to
        net cash
          provided by (used for) operations:
            Depreciation and amortization            159       176
            Deferred income taxes                     60        80
            Undistributed equity income and           62        (8)
        dividends received
            Decrease in other long-term              (52)     (313)
            Changes in certain assets and             157     (187)
              Net cash provided by (used for)
        continuing retail                             348     (277)
          Discontinued operations                      32      130
        Net cash provided by (used for)               380     (147)
        operating activities
        Cash Flows From Investing Activities:
          Capital expenditures                        (51)    (123)
          Proceeds from asset sales and               177       22
        divestitures, net
          Other, net                                   (4)       8
        Net cash provided by (used for)               122      (93)
        investing activities
        Cash Flows From Financing Activities:
          Proceeds from long-term debt and             -       546
        notes payable
          Reductions in long-term debt and           (19)     (194)
        notes payable
          Reduction in capital lease                 (25)      (26)
          Dividends paid                                -     (112)
          Other, net                                   21        6
        Net cash provided by (used for)               (23)     220
        financing activities
        Net increase (decrease) in cash               479      (20)
        Cash at beginning of year                   1,095      353
        Cash at end of year                        $1,574     $333
        .. The consolidated cash flow statement for the prior period has
          been restated for discontinued operations.
                              KMART CORPORATION
                         CONSOLIDATED BALANCE SHEETS

        (Amounts in millions)                          5-1-96    4-26-95
        Current Assets:
          Cash (including temporary investments of
        $1,082 and $41, respectively)                  $ 1,574     $ 333
          Merchandise inventories                        7,356     7,294
          Other current assets                           1,045     1,468
          Net current assets of discontinued               157       340
            Total current assets                        10,132     9,435
        Investments in affiliated retail companies          32       111
        Property and equipment - net                     5,093     5,970
        Other assets and deferred charges                  870       262
        Net long-term assets of discontinued                 -     1,099
            TOTAL ASSETS                               $16,127   $16,877
        Current Liabilities:
          Long-term debt due within one year             $ 248      $ 84
          Notes payable                                      -     1,294
          Accounts payable - trade                       2,756     3,127
          Accrued payrolls and other liabilities         1,181     1,076
          Taxes other than income taxes                    226       330
          Income taxes                                       5        83
            Total current liabilities                    4,416     5,994
        Capital lease obligations                        1,601     1,754
        Long-term debt and notes payable                 3,674     1,957
        Other long-term liabilities                      1,239     1,217
        Shareholders' Equity:
          Preferred stock, 10,000,000 shares authorized;
           Series C, 790,287 shares authorized; 654,815
           shares issued at April 26, 1995                   -       131
          Common stock, 1,500,000,000 shares authorized;
           shares issued 486,576,469, and 464,770,564,
           respectively                                    486       465
          Capital in excess of par value                 1,610     1,508
          Retained earnings                              3,227     3,989
          Treasury shares and restricted stock             (59)      (86)
          Foreign currency translation adjustment          (67)      (52)
            Total shareholders' equity                   5,197     5,955
        .. The consolidated balance sheet for the prior period has been
          restated for discontinued operations.

        CONTACT:  Robert M. Burton, Director, Investor Relations,
        810-643-1040, or Shawn M. Kahle, Vice President, Corporate Affairs,
        810-637-4201, both of Kmart



            CHICAGO, May 21, 1996 - Duff & Phelps Credit Rating Co.
        (DCR) has downgraded TransAmerican Refining Corp.'s (TARC) first
        mortgage securities to "CCC" (Triple-C) from "B-" (Single-B-Minus)
        Rating Watch - Down.  The company's Rating Watch status has also
        been removed.  The action affects approximately $295 million of

            The rating change reflects DCR's concern about the ability of
        TARC to raise the required funds necessary to complete the upgrade
        and reactivation of its petroleum refinery.  Total cost estimates
        needed to complete Phases I and II of its capital improvement
        program have increased from an original amount of $434 million to an
        updated estimate of $560 million.   Of this amount, the company has
        incurred expenditures of approximately $179 million, funded from the
        initial financing of the project as well as proceeds from the sale
        of TransTexas Gas Corporation stock.  In March 1996, TARC sold 4.55
        million shares of TransTexas Gas common stock for net proceeds of
        $26.6 million, which were deposited in the company's cash collateral
        account.  The cash collateral account had a balance of $27 million
        at March 31, 1996.

            Considering the higher cost estimates and the March sale of
        TransTexas stock, additional funding of approximately $354 million
        will be needed to complete the project, of which $220 million is
        required for the completion of Phase I.  Under the bond indenture,
        the failure of the company to complete and test Phase I by February
        15, 1997, would constitute an event of default at such date.  The
        company is currently considering financing proposals that include
        the sale of additional TransTexas stock held by TARC, equity
        investments in the company by third parties and the sale of common
        stock of the company. TransAmerican Natural Gas Corp., TARC's
        parent, is also reviewing financing plans that would involve
        proceeds from the sale of TransTexas assets as well as proceeds from
        various other asset-based financing alternatives.

            The company anticipates completing this financing on a timely
        basis; however, until such additional funds are secured, we believe
        the above- mentioned rating to be a better reflection of TARC's
        current financial condition.  DCR will review this situation again
        as TARC's financing alternatives become more defined.

        CONTACT:  Stephen J. Flaherty, 312-368-3141, or Dennis P. Coleman,
        CFA, 312-368-3147, both of Duff & Phelps Credit Rating Co.