TCR_Public/960612.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  June 12, 1996



  1. Irata, Inc. Chair resigns
  2. ARI Network Services Inc. reports
  3. Harry's Farmers Market announces improved first quarter results in line with expectations
  4. Houston's Cooper Manufacturing acquired by Cabec Energy of Dallas
  5. BRENDLE'S SAYS COURT APPROVES $15 MILLION DIP LOAN
  6. CELOTEX BANKRUPTCY SETTLEMENT ANNOUNCED
  7. EDISON BROTHERS STORES REPORTS NET LOSS IN FIRST QUARTER





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Irata announcement



HOUSTON -- June 12, 1996 -- Robert A. Searles Jr.,
        president and chief executive officer of Irata Inc. (NASDAQ:IRATA),
        today announced that the board of directors has accepted the
        resignation of company chairman Richard W. Fairchild Jr., effective
        immediately.
        


            Fairchild will be retained as a consultant to the company.
        Additionally, Searles announced that the board of directors adopted
        a resolution to retain the services of Wimmer Associates Inc.,
        Dallas, Texas, to assist the board and management with an extensive
        review of its operations and to assist in developing and
        implementing its business plan.  The company previously announced a
        tentative agreement with its lender with respect to the company's
        technical default under its loan agreement that is conditioned upon
        the company's satisfactory completion of a private placement of its
        securities.
        


            Searles went on to say that, "Mr. Fairchild has made significant
        contributions to the company and will be missed.  The company is
        confident that if it is able to meet the conditions of its
        settlement agreement with its lender, many of the programs and
        strategies put in place during Mr. Fairchild's tenure will prove
        profitable in the future."  
        


            Irata Inc. developed and presently operates a computerized
        version of the traditional self-service photo booth known as Video
        Foto.  Booths combine the traditional photo options with a variety
        of souvenir, novelty, and amusement options utilizing computer
        imaging technology, a laser printing device, and other computer
        hardware and software, offering users with a computer generated
        photo in 30 seconds for only $1.00.  The company presently operates
        booths in enclosed shopping malls, amusement parks, discount stores,
        and various amusement locations in 46 states.  
        


CONTACT:  Irata Inc., Houston
                  Robert Searles, 713/467-4300



ARI Network Services Inc. reports increased revenue for third quarter; top line up 31 percent quarter-to-quarter and 9 percent year-to-year



MILWAUKEE, WI -- June 12, 1996 -- ARI Network Services
        Inc. (NASDAQ/NMS:ARIS), an electronic commerce services provider,
        today announced its results for the third quarter ended April 30,
        1996.
        


            The company's total revenue was $1.41 million, a gain of 9
        percent over $1.29 million for the third quarter last year and up 31
        percent from $1.08 million in the second quarter of this year.
        Recurring revenues were $1.0 million, up 13 percent from last year
        and 16 percent over the preceding quarter.  Net loss per share was
        ($.08) compared to ($.07) last year, 20 percent improved over
        ($0.10) per share in the second quarter.
        


            "Our revenues for the third quarter showed the first year-to-
        year increase this fiscal year," said Brian Dearing, the company's
        president and chief executive officer who joined ARI in November
        1995.  "We are seeing some indications that our efforts to
        restructure, reposition and strengthen ARI and its sales and
        marketing efforts are now beginning to translate into concrete
        results.  As our business has evolved, sequential quarterly results
        are becoming more meaningful," Dearing observed.  "However, our
        current revenue mix still contains some seasonal factors which favor
        quarters three and four over one and two.  It is also very difficult
        to predict future rates of growth."
        


            Dearing joined ARI in November 1995 to complete a company
        restructuring which was started by the main shareholders in 1994.
        He was formerly a vice president in electronic commerce marketing
        with the part of Sterling Software (NYSE:SSW) which is now Sterling
        Commerce (NYSE:SE).  Since the restructuring began, ARI has extended
        its electronic commerce services to include Internet-based
        electronic commerce and beyond its historical base in agribusiness
        to other sectors.
        


        About ARI
        


            ARI is a provider of standards-based, Internet-enabled
        electronic commerce services for selected commercial communities and
        distribution channels.  ARI services and software help streamline
        channels of distribution by automating the flow of commercial
        information among trading partners.  ARI builds and manages
        electronic commerce databases including online directories of
        products, locations and trading partners.  ARI also provides a suite
        of online interactive services for business transaction management
        together with the needed electronic commerce platforms, professional
        and support services.  ARI's concept of electronic commerce goes
        beyond the transactions surrounding product movement to include
        order capture and delivery of digital products themselves.  For
        example, ARI's Newsfinder service is an electronic commerce service
        for the Associated Press through which AP news stories can be
        searched, ordered and delivered to a weekly newspaper customer.  ARI
        currently provides electronic commerce services to selected
        industries and distribution channels including agribusiness,
        publishing and freight transportation.


        
                                ARI NETWORK SERVICES INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                              (In Thousands)
        
                                             April 30        July 31
                                                 1996              1995
                                                    (Unaudited)          (Audited)
                                                  ___________      ___________
        
        ASSETS
        ______
        
        Current assets:
         Cash and cash equivalents   $    335            $    236
         Accounts receivable                      812          1,105    
         Prepaid expenses                           158                  180
                                                    ___________   ___________
           Total current assets                    1,305             1,521
        
        Equipment & leasehold improvements,
         net of accumulated depreciation and
         amortization                                   477                879
        Other assets                                        0                    5
        Network systems-net                    9,480             9,277
                                                   ___________   ___________
        
           Total Assets                         $ 11,262         $ 11,682
                                                  ___________   ___________
                                                  ___________   ___________
        
        LIABILITIES AND SHAREHOLDERS'
         EQUITY    
        ____________________________
        
        Current liabilities:
         Accounts payable                       $    648      $    766
         Line of credit with shareholders          3,000         1,400
         Other current liabilities                   813           851  
         Current portion of capital lease
          obligations                                 68            68
                                           ___________   ___________
        
           Total current liabilities               4,529         3,085
        
        Capital lease obligations                     21            73
        
        Shareholders' equity:
         Common stock                                 13            12
         Additional paid-in capital               76,324        74,961
         Accumulated deficit                     (69,625)      (66,449)
                                           ___________   ___________
        
        Total shareholders' equity                 6,712         8,524
                                           ___________   ___________
        
        Total Liabilities & Shareholders'
         Equity                                 $ 11,262      $ 11,682
                                           ___________   ___________
                                           ___________   ___________
        
        See notes to unaudited condensed consolidated financial statements.
        
                         ARI NETWORK SERVICES, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                     (In thousands except for share data)
                                (Unaudited)
        
                                  Three Months Ended    Nine Months Ended
                                        April 30            April 30
                                     1996      1995      1996      1995
        
        Net revenues                   $ 1,407   $ 1,287   $ 3,620   $ 3,841
        
        Operating expenses:
          Variable cost of products and
           services sold (exclusive of
           depreciation and amortization
           shown below)                    347       376       815       954
        
          Depreciation and amortization    476       404     1,248     1,921
        
          Network operations               218       269       656       929
        
          Selling, General
          & Administrative               1,239     1,184     3,521     3,704
        
          Network and product development  463       365     1,404     1,192
        
                                   _______   _______   _______   _______
        Operating expenses before
         amounts capitalized             2,743     2,598     7,644     8,700
        
          Less capitalized expenses(a)    (374)     (328)   (1,039)
        (1,058)
                                   _______   _______   _______   _______
        
        Total net operating expenses     2,369     2,270     6,605     7,642
                                   _______   _______   _______   _______
        
        Operating Loss                    (962)     (983)   (2,985)
        (3,801)   
        
        Other income (expense)             (64)       74      (191)       80
                                   _______   _______   _______   _______
        
        Net loss                      ($ 1,026)   ($ 909) ($ 3,176) ($
        3,721)
                                   _______   _______   _______   _______
                                   _______   _______   _______   _______
        
        Average common shares
         outstanding                    12,699    12,186    12,355    12,031
Net loss per common share       ($0.08)   ($0.07)   ($0.26) ($0.31)
   
     

        (a)  In accordance with FASB 86, includes a portion of network and
        product development expense and other operating expenses directly
        related to the development process.
        


        See notes to unaudited condensed consolidated financial statements.
        


CONTACT:  ARI Network Services Inc.
                  Brian E. Dearing, 414/283-4300
                  E-mail:  dearing@arinet.com



Harry's Farmers Market announces improved first quarter results in line with expectations


        


ROSWELL, Ga. --  June 12, 1996 -- Harry's Farmers
        Market, Inc. (NASDAQ: HARY) the Atlanta-based purveyor of fresh,
        specialty and prepared food products, today announced improved
        results for the first quarter of fiscal 1997 ended May 1, 1996,
        confirming previous projections.  
        


            The Company reported a loss of $.05 per common share in the
        first quarter compared to a loss of $.14 per common share for the
        same period last year and a loss of $.11 per common share for the
        fourth quarter of fiscal 1996 which ended January 31.  
        


            Sales for the first quarter, as reported earlier, were $33.5
        million, compared to sales of $34.9 million for the same period last
        year.  On a comparable store basis, sales were off only 3.9% as
        compared to an 8.1% decline for the fourth quarter of fiscal 1996.
        However, May sales were up 2.6% over the same period last year and
        June sales are sustaining the positive trend.  
        


            "We continue to be pleased with our progress toward
        profitability," said Harry A. Blazer, Chairman, CEO and President.
        "In fact, May is the third month in a row that we have had a net
        after tax profit."  
        


            According to Mr. Blazer, the Company continues to move toward
        the previously reported sale of certain real estate assets which is
        expected to produce proceeds of more than $4.6 million.  These
        proceeds will be used to reduce the Company's borrowings and debt
        service.  The transactions are expected to close during the second
        quarter of this fiscal year.  
        


            The Company's primary lender has restructured loan covenants
        more favorably until maturity, or the extension thereof.  Combined
        with the previously announced sale of the Nashville property which
        is expected to close later this month, restructuring of the senior
        credit facility will also allow the Company to borrow an additional
        $1 million for general corporate purposes, including growth.  
        


            Subsequent to the 1997 first quarter, the Company has found what
        it believes to be a viable resolution for obtaining
        refinancing/repayment of the mortgage loan on its bakery and
        distribution facilities.  The Company expects to finalize this
        activity during the second quarter of fiscal 1997.  
        


            Harry's Farmers Market, Inc. owns and operates three megastores
        and two Harry's In A Hurry stores in metro Atlanta specializing in
        fresh food products, as well as specialty and prepared foods.  In
        addition, the Company owns and operates a USDA-approved food
        preparation facility and one of the South's largest premier
        bakeries. The Company's annual meeting is scheduled for Wednesday,
        June 19, 1996 in the Peachtree Auditorium at NationsBank Plaza, 600
        Peachtree Street, beginning at 10:00 a.m.


        
                           HARRY'S FARMERS MARKET, INC.
                               Financial Highlights
        
                                           1Q/FY97            1Q/FY96
                                         Three Months       Three Months
                                            Ended              Ended
                                          May 1, 1996        May 3, 1996
        
        Net Sales                    $33,514,00    $34,916,000
        Gross Profit                $8,947,000 $8,650,000
        Gross Margin                      26.7% 24.8%
        Income (Loss) from Operations               
      $31,000 ($337,000)
        Net Income(Loss)        ($319,000) ($836,000)
        Earnings(Loss) per common share              
         ($.05) ($.14)
        Number of Shares Outstanding              
  6,168,000 6,164,000
        

CONTACT:  Tortorici & Company, Inc., Atlanta
                  Anthony J. Tortorici, 404/365-9393


Houston's Cooper Manufacturing acquired by Cabec Energy of Dallas


        


LONGVIEW, Texas -- June 12, 1996 -- Cabec Energy
        Corp. President/CEO Ralph Curton announced today the purchase of
        Cooper Manufacturing, the world's leading name in truck-mounted,
        mobile, work-over rigs.  Curton said, "This is an exciting
        acquisition for Cabec.  Being able to bring Cooper Manufacturing out
        of bankruptcy has far-reaching possibilities. (Cooper filed for
        bankruptcy in January 1996, to protect themselves from a hostile
        takeover.)  Revitalizing Cooper is, to the oil and gas industry,
        what revitalizing Chrysler Corporation was to the auto industry.  
        


            "The upside to Cabec acquiring the seventy-eight-year-old
        company could be phenomenal.  We think we have the people and the
        funding capability to bring this company to its former glory and
        beyond." Cabec's strategy of forming strategic alliances with giants
        in the oil and gas industry is continuing to pay off.  Curton said,
        "The acquisition of Cooper is just another example of the
        effectiveness of our new alliances.  Cabec now owns the most
        recognized logo in the work-over and mobile rig drilling industry,
        as well as all of its technology, trademarks and customers.  Cooper
        is truly the `Chevy' of the industry.  Cabec is now positioned to
        capitalize on the oil and gas industry's entering into another
        growth era and the current shortage of workover rigs, parts and
        other oilfield equipment in this country and abroad."
        


            When asked to explain what Cooper's future meant to Cabec,
        Curton referred to the historical records of Cooper saying, "In the
        early 1980s, Cooper Manufacturing sales exceeded $150 million per
        year, and since 1918, 48% of the work-over rigs sold have been
        Cooper rigs.  Cooper has an unparalleled reputation for quality and
        advanced technology in the industry, particularly in developing cold-
        weather equipment.  Since 1993, 70% of all rigs sold to Russia have
        been Cooper rigs.  In 1995 alone, twenty cold-weather rigs were sold
        to Russia at approximately $545,000 each, with spare parts of $1.7
        million, plus tools of approximately $3.9 million."  Furthermore,
        Curton explained, "There are approximately 2,500 Cooper rigs
        operating around the world, providing Cooper with a built-in demand
        for Cooper parts as well as helping to create the remanufacturing
        and refurbishing side of Cooper's business."
        


            Curton said, "Here is a company with an excellent reputation
        around the world.  While it took a beating during the oil and gas
        slump in the 1980s -- as did many oil and gas related companies, it
        has maintained its position in the domestic market, while expanding
        into the international markets.  There is huge potential in Russia
        and all of the oil and gas producing countries of the former Soviet
        Union, Africa and South America.  These countries require this
        equipment so that they can get the necessary cash to fuel their
        expanding economies.  We are at the right place, at the right time,
        with the right product, Cooper rigs and parts.  All of these
        countries have mature oil and gas fields that have been neglected
        and cannibalized for decades.  They have a tremendous pent-up demand
        for equipment and parts."
        


            Curton continued, "Our goal is to return Cooper to its former
        sales of over $150 million annually.  This can be accomplished by
        meeting the current sales demand here and internationally.  Also,
        Cabec has acquired the right to purchase a pipe and tool company
        that will be able to produce parts for Cooper rigs, as well as sell
        drill pipe and drill collars directly to Cooper's international
        customers.  The acquisition of Cooper puts Cabec on a fast track to
        future earnings."
        


CONTACT:  Target Marketers
                  Mickey Holmes, 214/256-1365



BRENDLE'S SAYS COURT APPROVES $15 MILLION DIP LOAN


        


            ELKIN, N.C., June 12, 1996  - Brendle's Incorporated
        (Nasdaq: BRDL) announced it received final bankruptcy court approval
        for its $15 million DIP revolving credit loan facility.  The DIP
        loan is provided by Foothill Capital Corp., the Company's pre-
        petition secured lender.
        


            The primary purpose of the DIP loan is to provide Brendle's
        trade vendors with a financial "backstop" to the post-petition trade
        credit the Company anticipates will be extended to it during the
        reorganization proceeding.  The Company has begun to receive trade
        credit from its suppliers in line with the assumptions included in
        its business plan.
        


            Judge William L. Stocks, who is overseeing  the reorganization
        proceeding in the Middle District of North Carolina, also approved
        the Company's motion to initiate its merchandise return program.
        This action will allow the Company to return merchandise to vendors
        which either no longer fits into the go-forward merchandise strategy
        or goods damaged during the normal course of business for full
        credit applied to pre-petition trade debt.
        


            The Company also announced that year-to-date through June 1, it
        is exceeding both its sales and gross margin plans.  On a comparable
        store basis sales are 2.9 percent ahead of plan although year-to-
        year comparisons are difficult given the significant realignment of
        the Company's merchandise offering and its exit from several high
        sales volume, low gross margin generating businesses.  Since it
        began its merchandise restructuring, the Company has exceeded its
        gross margin plan both in terms of dollars and as a percentage of
        sales, and is executing its strategic repositioning as presented to
        both its Creditors' and Equity Security Holders Committee.
        


CONTACT:  David Renegar, Chief Financial Officer, 910-526-6511, or
        Andrew G. Barnett, 910-526-6614 or 212-891-6090, both of Brendle's
        Incorporated



CELOTEX BANKRUPTCY SETTLEMENT ANNOUNCED


        


            TAMPA, Fla., June 12, 1996  - Officials of The Celotex
        Corporation
announced today a settlement has been reached with the
        committee representing the asbestos health claimants, the legal
        representative for future asbestos bodily injury claimants, the
        trade committee, equity interests, and certain other creditor
        interests.  The settlement will lead to the submission of a new plan
        of reorganization which, if confirmed at hearings scheduled to begin
        October 7, 1996, will enable the company to emerge from bankruptcy
        completely free from asbestos liability.
        


            "This settlement is excellent news for our company, its
        creditors, owners, employees and valued customers and suppliers,"
        said Celotex President Dennis Ross.  "This resolution is the
        critical first step which will permit Celotex to move forward with
        the same executive and employee team that has profitably managed the
        assets of the company throughout the period of our bankruptcy," said
        Ross.
        


           "The agreement that was reached today exemplifies the bankruptcy
        process at its very best," said Gene Locks, lead negotiator for
        various creditor interests.  "Both the interests of the company and
        its creditors, including the victims of asbestos disease, have been
        addressed in a way that is designed to maximize the benefits for all
        concerned.  We fully support Celotex and its current management and
        expect the company to emerge from the process as an even stronger
        company."
        


            Celotex filed voluntary petitions for reorganization under
        Chapter 11 in the U.S. Bankruptcy Court October 12, 1990 for
        protection from claims arising in asbestos-related litigation over a
        15-year period. "Celotex was a profitable and viable concern at the
        time of that filing," noted Ross.  "We have enhanced that record
        while operating under the protection of the court, achieving record
        levels of profitability during our last fiscal year.
        


            "With confirmation of the new plan of reorganization which is to
        be filed no later than July 12, 1996, the integrity of Celotex will
        be protected and we will be in a position to move forward on the
        progressive and profitable path of our most recent past.
        


        "We look forward to business as usual," Ross concluded.
            The Celotex Corporation is a national manufacturer of building
        and roofing products for commercial and residential uses.
        


CONTACT:  Jeffrey W. Warren, 813-224-9255



EDISON BROTHERS STORES REPORTS NET LOSS IN FIRST QUARTER



ST. LOUIS, June 12, 1996  - Edison Brothers Stores Inc.
        (NYSE: EBS) reported a net loss of $17.7 million, or 80 cents per
        share, for the fiscal first quarter ended May 4, 1996.  This loss
        included special after-tax charges of $11.3 million.  Of those
        charges, $8.5 million represented lease rejection claims and the
        write-off of fixed assets and intangibles associated with the
        company's plan to sell or close its Zeidler & Zeidler menswear
        division of 102 stores, and $2.8 million were primarily related to
        reorganization expenses.  Without the special charges, the net loss
        for the first quarter 1996 was $6.4 million.  This compares with a
        loss of $6.4 million, or 29 cents per share, for the first quarter
        1995.
        


            Edison's liquidity continues to improve.  The company's cash
        balance at the end of the first quarter 1996 was $164.8 million
        compared with $139.6 million at the end of the fourth quarter 1995.
        


            "Although we experienced a first-quarter loss, I am encouraged
        by our improvements in some divisions," Edison President Alan Miller
        said. "Overall, the company increased first-quarter earnings and
        gross margins over the fourth quarter 1995.  Our results are in line
        with where we expected to be in the reorganization process."
        


            As previously reported, first-quarter sales were $258.1 million
        compared with $318.1 million the year before.  Same-store sales
        decreased 4.6 percent.  In April 1996, Edison operated 2,082 stores
        compared with 2,742 stores in April 1995, a decrease of 24.1
        percent.
        


            "Our effort to minimize the impact of underperforming stores
        through store closings has been successful," Miller said.  "We will
        continue to refine our store base in the second quarter by closing
        approximately 140 additional stores, including our remaining 10
        stores in Mexico."
        


            The special charges related to the second-quarter store closings
        were taken in the fourth quarter 1995.
        


            Edison Brothers Stores Inc. operates approximately 2,000 apparel
        and footwear stores under the names of JW/Jeans West, Oaktree, Coda,
        J. Riggings, Zeidler & Zeidler and REPP Ltd menswear stores and
        Phoenix men's big-and-tall catalog; 5-7-9 Shops junior apparel
        stores; and Bakers/Leeds, Wild Pair and Precis footwear stores.
        



                 EDISON BROTHERS STORES, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME

           (In millions, except per share data)
      13 Weeks Ended       13 Weeks Ended
            May 4, 1996         April 29, 1995
         

Net Sales               $  258.1     $    318.1

Cost of goods sold, occupancy,
  and buying expenses                 183.7         218.9
Store operating and
  administrative expenses   69.3           87.2
Depreciation and amortization      10.4           17.0
Interest expense, net             .4              5.5
Restructuring and reorganization
  expenses       11.6275.4328.6

Pretax Loss         (17.3)              (10.5)
Provision (benefit) for income
  taxes             .4           (4.1)
Net Loss                  $  (17.7)     $     (6.4)

Per Common Share:
    Net Loss              $   (.80)    $     (.29)

    Cash dividends paid     $                $      .31

Weighted average common shares
  outstanding (in thousands)               22,135                      22,028


CONTACT:  David B. Cooper, Jr., CFO, 314-331-6531 or Amy Calvin,
Communications, 314-331-7996, both of Edison Brothers