TCR_Public/960619.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - June 19, 1996



  1. Fingermatrix changes B-Warrant exercise deadline
  2. PINNACLE MICRO MAKES ANNOUNCEMENT
  3. BRAUNS FASHIONS CORPORATION REPORTS REVISED NUMBERS
  4. FRETTER ANNOUNCES $5 MILLION FIRST QUARTER LOSS





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Fingermatrix changes B-Warrant exercise deadline


        


            DOBBS FERRY, N.Y. -- June 19, 1996 -- href="chap11.fingermatrix.html">Fingermatrix
        Inc.
(NASDAQ/EBB:FINX), the electronic fingerprinting company,
        Wednesday reported the final exercise date for the company's B-
        Warrants, which are exercisable at $2.00 per share, has been changed
        from Sept. 28, 1996, to Jan. 14, 1997.

        
            These warrants were established a year ago in the Plan of
        Reorganization under which the company emerged from Chapter 11
        bankruptcy.  
   

     
            However, it has now been determined that the Sept. 28 exercise
        deadline is not in compliance with the bankruptcy court's order,
        according to Thomas T. Harding, president and chief executive
        officer of Fingermatrix.  Moving the final date for exercise to Jan.
        14, 1997, corrects that error, he said.  
      

  
            The B-Warrants are tradeable and will shortly be listed on the
        NASDAQ Bulletin Board under the symbol FINXW, Harding added.
        


            Although the Sept. 28 date is printed on the back of all B-
        Warrant certificates issued to date, the company's transfer agent
        has been instructed to accept exercises through Jan. 14, 1997.
        


        CONTACT:  Molesworth Associates Inc., Green Valley, Ariz.
                  Gordon Molesworth, 520/625-0035



PINNACLE MICRO ANNOUNCES PLANNED $15
MILLION CONVERTIBLE DEBENTURE OFFERING; NEW TERMS WITH BANK OF AMERICA


        
            IRVINE, Calif., June 19, 1996 - Pinnacle Micro,
Inc.
        (Nasdaq: PNCL) announced today that it has signed a nonbinding term
        sheet for a $15 million "Regulation S" off-shore placement of
        convertible debentures that will be taken down in two tranches of
        $10 million and $5 million.  The Company also announced today the
        results of its discussions to date with representatives from Bank of
        America, the Company's lender.
        


        Loan Agreement with Bank of America


            On Monday, June 17, representatives of the Company met with
        representatives of Bank of America to discuss the status of the
        Company's current line of credit.  As previously disclosed, the
        Company was in default of certain covenants under the line of credit
        agreement as of December 30, 1995.  Pursuant to a letter dated June
        18, 1996, Bank of America advised the Company that it has breached
        and is in default under the credit agreement for failing to pay to
        the Bank on June 17, 1996, all outstanding principal, accrued
        interest and costs aggregating approximately $5 million.  The Bank
        also indicated that it was charging the Company the default rate of
        interest under the Agreement and agreed to forbear from exercising
        its remedies through July 1, 1996. Discussions between the Bank and
        the Company are continuing and no assurances can be given as to the
        outcome of such discussions or that the Bank will not elect to
        exercise its remedies after July 1, 1996. The Bank has stated,
        however, that if the Company can show substantial progress towards
        closing the private placement, the Bank would give reasonable
        consideration to further forbearance.

        
        Convertible Debenture Offering


            The Company is negotiating with several foreign capital sources.
        Detailed negotiations over the terms of the investment are in
        process with one such entity which resulted in the signing of a non
        binding term sheet for a "Regulation S" offshore placement of
        convertible debentures. Under the anticipated terms of the
        financing, $10 million of debentures would be placed in a first
        tranche to be followed approximately 60 days after the first closing
        by a second tranche of $5 million.  Placement of the debentures is
        on a "best efforts basis," and the closing is subject to conditions
        including customary approvals, final documentation and other
        matters.  The Company hopes to be able to close the first tranche of
        the financing within four to six weeks.

        
            It is anticipated that the debt would be convertible into common
        stock of the Company in 25 percent increments commencing 60, 90,
        120, and 150 days from closing at a negotiated discount from market
        price.
   

     
            "Although this is not yet a done deal, this is an encouraging
        event, and it shows a belief in the Company and its future," said
        Lawrence Goelman, Pinnacle Micro's president and CEO.  "Working
        capital is the lifeblood of any company.  We still have a lot of
        work ahead of us before the close, but as soon as completed the
        offering will rejuvenate the Company."

        
            If successful, proceeds of the financing will be used for
        working capital after paying down the Bank of America loan.  This
        additional capital will enable the Company to proceed with its
        planned production of Vertex and relaunch of Apex.
   

     
            Pinnacle Micro, Inc. is a recognized leader in recordable CD
        technology and optical storage systems for general data storage and
        data intensive applications such as network storage, imaging,
        desktop publishing and prepress, as well as emerging applications
        such as digital audio/video editing and commercial multimedia.
        Founded in 1987, Pinnacle Micro, Inc. is headquartered in Irvine, CA
        with offices in North America, Europe and the Pacific Rim.
      


        CONTACT:  Megan Morrow, Investor Relations, of Pinnacle Micro,
        800-553-7070 x3114 or 714-789-3114 direct,
        href="http://www.pinnnclemicro.com/" target=_new>http://www.pinnnclemicro.com/">http://www.pinnnclemicro.com/



BRAUNS FASHIONS CORPORATION REPORTS REVISED
FOURTH QUARTER AND YEAR END EARNINGS


        


            MINNEAPOLIS, MN -- June 19, 1996 -- Brauns Fashions
Corporation
        (Nasdaq-NNM: BFCI) today announced revised earnings for the fourth
        quarter and the full year ended March 2, 1996 to reflect the
        writeoff of its deferred tax assets.
        


            As previously reported, sales for the fourth quarter totaled
        $26,380,000, an increase of 6% from $24,967,000 the prior year.
        (The quarter included fourteen weeks as compared to thirteen weeks
        the prior year.)  Same store sales increased 1 percent.  The net
        loss for the fourth quarter was previously reported to be $163,000
        or $.04 per share. Due to the uncertainty of realizing the value of
        the deferred tax assets in future years, the Company's auditors
        required the full amount of $1,789,000 or $.47 per share to be
        written off.  The net loss for the quarter was $1,952,000 or $.51
        per share after recording the valuation allowance.  This compares to
        net income of $653,000 or $.17 per share for the same quarter the
        prior year.  (Fourth quarter earnings for the year ended February
        25, 1995, included a one time benefit of approximately $.06 per
        share resulting from year-end accrual adjustments.)

        
            Net sales for the fiscal year ended March 2, 1996, a fifty-three
        week year, were $97,296,000, an increase of 4 percent from
        $93,961,000 in the prior year, a normal 52 week year.  Same store
        sales decreased 3 percent.  The net loss for the year was $1,669,000
        or $.44 per share, prior to establishing the above mentioned
        valuation allowance and was $3,458,000 or $.91 per share after
        recording the valuation allowance. This compares to a net loss of
        $245,000 or $.06 per share in the prior year.

        
            At March 2, 1996, the Company was in default of three financial
        covenants of its Revolving Credit Facility with its Banks.  Based
        upon the results of operations through the first three months of
        fiscal 1997, it is likely that the Company will be in default of
        certain financial covenants of its Revolving Credit Facility and its
        9% Senior Notes during fiscal 1997 as well.
   

     
            As a result of these actual and probable technical defaults, the
        Company has retained Price Waterhouse, independent financial
        consultants, to advise management on alternatives available to
        restructure its operations and financial obligations for the long
        term. In the meantime, the Company continues to negotiate with its
        lenders.
      

  
            Nicholas H. Cook, Chairman and Chief Executive Officer said, "We
        are operating in an industry that is undergoing major change.  Our
        principal focus is on the long-term future of the Company.  With the
        added advice of our independent consultant, we are prepared to do
        what is necessary to operate successfully in this changing and
        challenging environment."

        
            Brauns Fashions Corporation, based in Minneapolis, Minn., is a
        regional retailer of women's fashions that currently operates 221
        stores in 22 states, primarily in the Midwest and Pacific Northwest.
   


        
                             FINANCIAL HIGHLIGHTS
                (Dollars in thousands, except per share amounts)
                                  (Unaudited)
        
                                            Three Months Ended
                                     March 2, 1996      February 25, 1995
                                     Fourteen Weeks       Thirteen Weeks
        Net sales                       $26,380              $24,967
        Net income (loss)               $(1,952)(a)             $653
        Net income (loss)
         per common share                $(0.51)(a)(b)         $0.17(b)
        
                                    Three Months Ended
                        March 2, 1996        % of  February 25, 1995  % of
                        Fourteen Weeks      Sales   Thirteen Weeks   Sales
        Net sales             $26,380       100.0     $24,967        100.0
        Cost of sales          19,135        72.5      17,652         70.7
        Gross profit            7,245        27.5       7,315         29.3
        Selling, general
         and administrative     6,400        24.3       5,264         21.1
        Depreciation and
         amortization             787         3.0         753          3.0
        Operating income           58         0.2       1,298          5.2
        Interest, net             305         1.1         245          1.0
        Income (loss) before
         income taxes            (247)       (0.9)      1,053          4.2
        Income tax provision
         (benefit)              1,705(a)      6.5(a)      400          1.6
        Net income (loss)     $(1,952)(a)    (7.4)(a)    $653          2.6
        Net income (loss)
         per common share      $(0.51)(a)(b)   --       $0.17(b)        --
        
            (a) In fiscal 1996, the Company recorded a valuation allowance
        of $1.8 million, or $.47 per share, equal to the full amount of its
        deferred tax assets, due to the uncertainty of realizing the value
        of these assets in future years.
        
            (b) Based on the weighted average number of outstanding shares
        of common stock and common stock equivalents of 3,792,632 for the
        period ended March 2, 1996 and 3,791,272 for the period ended
        February 25, 1995.
        
                             FINANCIAL HIGHLIGHTS
                (Dollars in thousands, except per share amounts)
        
                                         Fiscal Year Ended
                                  March 2, 1996      February 25, 1995
                                Fifty-Three Weeks     Fifty-Two Weeks
        Net sales                   $97,296                $93,961
        Net income (loss)           $(3,458)(a)              $(245)
        Net income (loss)
         per common share            $(0.91)(a)(b)          $(0.06)(b)
        
                                   Fiscal Year Ended
                      March 2, 1996      % of    February 25, 1995    % of
                   Fifty-Three Weeks    Sales    Fifty-Two Weeks     Sales
        Net sales            $97,296    100.0         $93,961        100.0
        Cost of sales         70,386     72.4          68,108        72.5
        Gross profit          26,910     27.6          25,853        27.5
        Selling, general
         and administrative   24,897     25.6          22,565        24.0
        Depreciation and
         amortization          3,154      3.2           2,690         2.9
        Operating income
         (loss)               (1,141)    (1.2)            598         0.6
        Interest, net          1,388      1.4             993         1.0
        Income (loss) before
         income taxes         (2,529)    (2.6)           (395)       (0.4)
        Income tax provision
         (benefit)               929(a)   0.9(a)        (150)       (0.1)
        Net income (loss)    $(3,458)(a) (3.5)(a)      $(245)       (0.3)
        Net income (loss)
         per common share    $(0.91)(a)(b) --          $(0.06)(b)      --
        
            (a) In fiscal 1996, the Company recorded a valuation allowance
        of $1.8 million, or $.47 per share, equal to the full amount of its
        deferred tax assets, due to the uncertainty of realizing the value
        of these assets in future years.
        
            (b)Based on the weighted average number of outstanding shares of
        common stock and common stock equivalents of 3,791,612 for the
        period ended March 2, 1996 and 3,785,132 for the period ended
        February 25, 1995.


        CONTACT:  Stephen W. Clark, Vice President and Chief Financial
        Officer of Brauns Fashions Corporation, 612-551-5106



FRETTER ANNOUNCES $5 MILLION FIRST QUARTER LOSS


        


            BRIGHTON, Mich., June 19, 1996 - href="chap11.fretter.html">Fretter, Inc. (Nasdaq:
        FTTR) announces a loss of $5,000,000 ($.47 per share) on sales of
        $22,000,000 for the first quarter ended April 30, 1996.  Such sales
        and loss reflect the inclusion of the Company's wholly owned
        subsidiaries, but exclude Dixons U.S. Holdings, Inc. and its
        subsidiaries 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.
        


            Fretter also announces that its remaining six operating
        locations in Metropolitan Detroit, currently conducting going out of
        business sales, will close forever on Monday, June 24, 1996.
        


            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.


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