TCR_Public/960620.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - June 20, 1996



  1. Tri-Lite reaches accord with primary secured lender and creditors' committee
  2. SANCTUARY WOODS REPORTS TRANSITION QUARTER RESULTS
  3. CAMBRIDGE BIOTECH TO SELL ENTERIC PRODUCT LINE TO MERIDIAN DIAGNOSTICS
  4. CliniCorp files Chapter 11 petiton
  5. Board of Supervisors Approves Restructuring Plan for the County of Orange
  6. BEN FRANKLIN RETAIL STORES REPORTS RESULTS





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Tri-Lite says it has reached accord with primary secured lender and
creditors' committee


        


            SANTA ANA, Calif. -- June 20, 1996 -- Helionetics'
        (OTC-BB:HLXC) subsidiary, Tri-Lite
Inc.,
in Chapter 11 bankruptcy
        since Feb. 26, 1996, Thursday said it has reached an agreement with
        its primary secured lender (Star Bank, Cincinnati) and the unsecured
        creditors' committee and plans to file its plan of reorganization
        and disclosure statements with the U.S. Bankruptcy Court, Santa Ana,
        this month.  

        
            The company said it expects to have a hearing on the adequacy of
        the disclosure statement in early August and emerge from bankruptcy
        in September 1996 "debt free, operationally profitable and with a
        positive cash flow."
   

     
            As part of the plan, Helionetics Inc., Van Nuys, Calif., will
        contribute its AIM Energy Inc. subsidiary to Tri-Lite and most Tri-
        Lite directors, now essentially officers of Helionetics, will resign
        on confirmation of the plan and will be replaced by independent,
        outside directors.  Helionetics will remain the company's majority
        shareholder.

        
            The plan additionally includes a provision that A. Alvin Katz,
        Tri-Lite president and chief operating officer, will automatically
        resign his position if the company reports a loss in any one fiscal
        year.  The board also will have the right to request his resignation
        if operating profits fall below 10% pre-tax in any one fiscal year.
   

     
            The company said it plans to bring all of its filings up to date
        prior to or simultaneous with its emergence from bankruptcy and,
        thus, to have its shares trading in the public marketplace.  At the
        time Tri-Lite filed for bankruptcy protection, its shares were
        trading on the American Stock Exchange.
      

  
            The AIM filter, developed by AIM Energy Inc., mitigates
        harmonics, a pollutant of electrical systems often resulting in the
        disabling of transformers and are regarded a potential cause of
        fires.


        CONTACT:  Paul Keil or Andy Malone --
                  714/487-1988 or 714/366-5803,
                        or
                  A. Alvin Katz, 800/421-6102
        



SANCTUARY WOODS REPORTS TRANSITION QUARTER
RESULTS; ANNOUNCES NEW CHAIRMAN OF THE BOARD


        


           SAN MATEO, Calif., June 20, 1996 - Charlotte Walker,
        president and CEO of Sanctuary Woods Multimedia Corporation (Nasdaq:
        SWMFC; Vancouver), was elected chairman of the board, it was
        announced today.  A member of the Board of Directors since March
        1995, Walker was appointed president and CEO in January.  As
        chairman, she replaces Brian Beninger who relinquished his seat on
        the board.  Under the direction of Walker, Sanctuary Woods has sold
        its entertainment studio, and streamlined its organization to focus
        on the development and publishing of its children's curriculum-based
        educational software products.
        


            Other personnel changes include the promotion of Peter Nichter
        from assistant controller to controller, with responsibility for the
        Company's financial operations and reports.  Nichter joined
        Sanctuary Woods as assistant controller in 1995 from the ImagiNation
        Network where he served as interim controller.

        
            Sanctuary Woods today also announced results for its quarter
        ended March 31, 1996.  This quarter is a stub period, as the Company
        changed its fiscal year end to March 31.  Net revenues from consumer
        titles decreased to $931,805 in the transition quarter from
        $1,302,125 in the first quarter of 1995.  This decrease reflects a
        $390,000 charge for price protection and product returns, largely
        for entertainment titles. The net loss for the Transition Quarter
        was ($4,514,171) compared to ($2,896,992) in the quarter ended March
        31, 1995, resulting in a net loss per share of ($0.25) in the
        Transition Quarter compared to ($0.18) in the period ended March 31,
        1995.  "The increase in the net loss resulted from substantial
        severance costs and other costs related to the reorganization of the
        Company's operations, as well as additional inventory reserves and
        write-offs related to the Company's assessment of the salability of
        entertainment products in its inventory," noted Charlotte Walker,
        the Company's President and Chief Executive Officer.

        
            Approximately $2.5 million of operating expenses in the
        Transition Quarter were associated with operations which have since
        been sold, shut-down or consolidated.  This amount, in addition to
        $640,000 in charges taken against accounts receivable and
        inventories, represented over $3.1 million in expense related to
        curtailed operations.  Other expenses related to ongoing operations
        have also been reduced.
   

     
            At June 14, 1996, the Company had cash of $290,000, and bridge
        notes of $1.550 million had been converted to equity.  Of the total
        bank borrowings of $1,191,000 outstanding at June 14, $191,000 is
        due by June 30, 1996, with the remaining balance payable in full by
        December 31, 1996.  No additional bank borrowings are currently
        available.  Although the Company has made substantial progress since
        March 31, 1996, in improving its balance sheet condition, the
        Company continues to explore a number of options to improve its
        capital resources and fund its 1996 operating plan.  If the Company
        is unable to successfully do so, management believes that the 1996
        operating plan may be materially adversely affected.

        
            This announcement contains forward looking statements within the
        meaning of section 27A of the Securities Act of 1933 as amended, and
        Section 21E of the Securities Exchange Act of 1934, as amended.  In
        addition to the potential risks and uncertainties discussed herein,
        reference is made to the additional discussion and risk factors in
        the Company's Report on Form 10-Q, and Report on Form 10-K, as
        amended, on file with the Securities and Exchange Commission.
   

     
            Sanctuary Woods is a registered trademark and the Sanctuary
        Woods tree logo is a trademark of Sanctuary Woods Multimedia.  The
        NASD and Vancouver Stock Exchange have not reviewed and do not
        accept responsibility for the adequacy or accuracy of the contents
        of the foregoing.
      


  
                       Condensed Consolidated Balance Sheets
                     As of March 31, 1996 and December 31, 1995
                                     (unaudited)
        
                                                   March 31,  December 31,
                                                        1996          1995
         ASSETS
        
         CURRENT ASSETS:
         Cash                                         $8,455       $11,484
         Accounts receivable                         800,701     1,308,603
         Inventories                               1,384,840     1,977,858
         Deferred royalties                          127,000        80,000
         Prepaid expenses                            294,203       662,179
        
         Total current assets                      2,615,199     4,040,124
        
         PROPERTY AND EQUIPMENT                    1,834,266     2,367,589
        
         DEFERRED ROYALTIES                          134,000       181,000
        
         LICENSES AND OTHER INTANGIBLES               10,396         9,921
        
         TOTAL ASSETS                             $4,593,861    $6,598,634
        
         LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
        
         CURRENT LIABILITIES:
         Bank line of credit                      $2,226,781    $1,800,000
         Notes payable                             1,563,666           ---
         Accounts payable                          3,087,886     2,486,497
         Accrued expenses                          1,395,359     1,557,648
         Royalty obligations                         611,905       480,884
         Current portion of capital lease obligations 28,715        29,626
        
         Total current liabilities                 8,914,312     6,354,655
        
         LONG-TERM ROYALTY OBLIGATIONS               534,000       581,000
         CAPITAL LEASE OBLIGATIONS                    13,781        20,359
        
         Total liabilities                         9,462,093     6,956,014
        
         COMMITMENTS AND CONTINGENCIES
        
         STOCKHOLDERS' EQUITY (DEFICIT):
         Authorized, 100,000,000 common shares,
          no par value, issued outstanding,
          22,158,580 at March 31, 1996,
          and 22,153,580 at December 31, 1995     31,763,839    31,754,188
         Accumulated deficit                    (35,874,113)  (31,359,942)
         Accumulated translation adjustments       (757,958)     (751,626)
         Total stockholders' equity (deficit)    (4,868,232)     (357,380)
        
         TOTAL LIABILITIES AND STOCKHOLDERS'
          EQUITY (DEFICIT)                        $4,593,861    $6,598,634
        
             See notes to consolidated financial statements.
        
        
                   Condensed Consolidated Statements of Operations
                     Three Months Ended March 31, 1996 and 1995
                                     (unaudited)
        
                                                        1996          1995
        
         SALES:
         Consumer titles                            $931,805    $1,302,125
         Publisher services                            5,807       202,990
        
         Total sales                                 937,612     1,505,115
        
         COST OF SALES:
         Consumer titles                             759,288       501,696
         Technology amortization                           0        80,308
         Publisher services                          164,922       145,173
        
         Total cost of sales                         924,210       727,177
        
         GROSS MARGIN                                 13,402       777,938
        
         OPERATING EXPENSES:
         Research and development                  1,261,391     1,008,334
         Marketing and sales                       1,789,866     1,737,749
         Administration                            1,196,553       719,049
         Depreciation                                210,932       211,449
        
         Total operating expenses                  4,458,742     3,676,581
        
         LOSS BEFORE OTHER INCOME
         (EXPENSE)                               (4,445,340)   (2,898,643)
        
         OTHER INCOME (EXPENSE)
         Foreign exchange gain (loss)                  (203)      (10,833)
         Interest expense and other                 (68,628)        12,484
        
         Total other income (expense)               (68,831)         1,651
        
         NET LOSS                               $(4,514,171)  $(2,896,992)
        
         NET LOSS PER SHARE                          ($0.25)       ($0.18)
        
         SHARES USED IN COMPUTATION               18,158,085    15,739,957
        
         See notes to consolidated financial statements.
        
        
                  Condensed Consolidated Statement of Cash Flows
                     Three Months Ended March 31, 1996 and 1995
                                     (unaudited)
        
                                                        1996          1995
        
         CASH FLOWS FROM OPERATING ACTIVITIES
         Net loss                              $ (4,514,171) $ (2,896,992)
         Adjustments to reconcile net loss to
          net cash used in operating activities:
         Depreciation and amortization               211,457       356,622
         Stock option compensation                    12,381           ---
         Loss on disposals of assets                 401,658           ---
         Changes in assets and liabilities:
         Accounts receivable                         507,902     1,018,926
         Inventories                                 593,018      (80,748)
         Deferred royalties and prepaid expenses     451,997     (333,220)
         Licenses and other intangibles              (1,000)      (57,477)
         Accounts payable                            601,389     (623,330)
         Accrued expenses                          (162,289)        73,357
        
         Net cash used in operating activities   (1,897,658)   (2,542,862)
        
         CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of property and equipment         (79,267)     (272,123)
        
         Net cash used in investing activities      (79,267)     (272,123)
        
         CASH FLOWS FROM FINANCING ACTIVITIES
         Issuance of common stock-net of issue costs (2,730)       214,106
         Net borrowings on bank line of credit       426,781       200,000
         Proceeds from issuance of notes payable   1,556,177           ---
        
         Net cash provided by financing activities 1,980,228       414,106
        
         EFFECT OF EXCHANGE RATE CHANGES ON CASH     (6,332)           ---
        
         NET INCREASE (DECREASE) IN CASH             (3,029)   (2,400,879)
        
         CASH, BEGINNING OF PERIOD                    11,484     2,669,431
        
         CASH, END OF PERIOD                          $8,455      $268,552
        
         CASH PAID DURING THE PERIOD FOR:
         Interest                                    $57,985       $73,972
         Income taxes                                    ---         1,600


        CONTACT:  Charlotte Walker, President and CEO, 415-286-6025, or
        Jeremy Salesin, Vice President, Business Affairs, 415-286-6169, both
        of Sanctuary Woods


CAMBRIDGE
BIOTECH TO SELL ENTERIC PRODUCT LINE TO MERIDIAN DIAGNOSTICS, INC.


        


            WORCESTER, Mass., June 20, 1996 - href="chap11.cambridge.html">Cambridge Biotech
        Corporation
(NASD-OTC-BB: CBCXQ) today announced that Meridian
        Diagnostics, Inc. (Nasdaq-NNM: KITS) was the successful bidder
        approved yesterday by the Bankruptcy Court to purchase its enteric
        product line for $5.5 million in cash plus a $200,000 advance of
        royalties and certain other considerations including inventory
        purchases and a supply agreement.  The current annual sales volume
        of the product line is approximately 4 million dollars.  The parties
        expect the transaction to close next week.

        
            Alison Taunton-Rigby, President and CEO of Cambridge, said, "We
        are very pleased with the increased purchase price, and are
        confident that Meridian will provide excellent service to our
        customers."
   

     
            William J. Motto, Chairman and Chief Executive Officer, said
        "This acquisition is consistent with Meridian's well-established
        growth strategy."  He went on to say, "This acquisition broadens
        Meridian's product line and will produce near- and long-term sales
        and profit opportunities both domestically and internationally.
      

  
            Meridian Diagnostics, Inc. develops, manufactures and markets a
        variety of immunodiagnositic test kits, purified reagents such as
        antigens and monoclonal and polyclonal antibodies, and related
        diagnostic products.  All Meridian products are used outside the
        human body and require little or no special instrumentation or
        equipment. Domestic and international market segments consist of
        hospital, commercial and reference laboratories, and physicians'
        offices.

        
            Cambridge Biotech Corporation (CBC) is a therapeutics and
        diagnostics company focusing on infectious diseases and cancer.  CBC
        filed for protection under Chapter 11 of the United States
        Bankruptcy Code on July 7, 1994, and filed a reorganization plan
        with the bankruptcy court on April 10, 1996.  After bankruptcy court
        approval of CBC's reorganization plan, for which a court hearing is
        scheduled for July 15, 1996, the assets, liabilities and
        intellectual property of CBC, relating to its biopharmaceutical
        business, will transfer to Aquila Biopharmaceuticals.  Aquila will
        focus on developing and commercializing therapeutic and prophylactic
        vaccines for infectious diseases, and immunotherapeutics for cancer.
        Aquila's therapeutics business will include the Stimulon(TM) family
        of adjuvants and proprietary vaccines. The most advanced adjuvant,
        QS-21, is in clinical development through corporate and academic
        partners.  The proprietary vaccines include a feline leukemia
        vaccine currently on the market and vaccines in development in the
        areas of tick-borne diseases, streptococcal infections, malaria,
        bovine mastitis and canine Lyme disease.  CBC recently announced an
        agreement to sell its retroviral diagnostic business to bioMerieux
        Vitek, Inc. for $6.5 million in cash.

        
            Statements in this release which relate to plans and objectives
        of management for future operations or which otherwise relate to
        future performance are forward looking statements.  Actual results
        may differ from those projected as a result of the companyAs success
        in emerging from bankruptcy, product demand, pricing, market
        acceptance, the effect of economic conditions, intellectual
        property, competitive products, risks in product and technology
        development, and other risks identified in the Company's Securities
        and Exchange Commission filings.
   

     
        Contacts: Alison Taunton-Rigby, President, Chief Executive Officer
        of Cambridge Biotech Corporation, 508-797-5777, or Robert Gottlieb,
        Senior Vice President of Feinstein Partners, Inc., 617-577-8110



CliniCorp announces
decision to
pursue reorganization under Chapter 11 of the Federal Bankruptcy Code.


        


            WEST PALM BEACH, Fla. -- June 20,
1996 -- CliniCorp, Inc. (OTC:CLNI)
announced Thursday that the board
        of directors voted unanimously to petition the Federal Court for
        protection under Chapter 11 of the United States Bankruptcy Code.  
        


            The decision to file for reorganization under Chapter 11
        resulted, among other things, from extensive litigation and claims
        related to past history, the costs of defense related to a purported
        class action filed over two years ago, a decline in clinic
        productivity and doctor morale, and an inability to attract new
        capital under current circumstances.  

        
            The company also announced the execution of a contract to sell
        off all of its owned and operated healthcare clinics, together with
        all accounts receivable related to such clinics, to a Florida based
        clinic operator in exchange for (i) the assumption of approximately
        $2,500,000 of debt, (ii) cash in an amount which is the greater of
        $50,000 a month or 10% of collections from the sold units for 12
        months, and (iii) preferred stock of the Buyer having a face value
        of $600,000.  The Buyer also agreed to help secure satisfactory
        financing for the continued operation and expansion of Medical
        Diagnostic Imaging of America Inc. a wholly owned subsidiary of the
        company.  Completion of the transaction is subject to due diligence
        and Buyer financing, and will need to be approved by the Bankruptcy
        Court.  
   

     
            The company intends to complete the divestiture of its
        owned/operated clinic line in order to devote its time, energy and
        working capital primarily to the continued development of its
        previously announced Integrated Healthcare Center ("IHC") strategy.
        Under that strategy, CliniCare Wellness Centers Inc., the company's
        wholly owned subsidiary, provides value added management services to
        independently owned IHCs which employ chiropractors, medical doctors
        and physical therapists to render healthcare services to patients at
        a common office site.  The company intends to establish IHCs in
        geographically logical clusters in order to market their services to
        managed care plans.  

        
            CliniCorp is a clinic management company listed on the OTC
        Bulletin Board (symbol:CLNI) with corporate headquarters located at
        1601 Belvedere Road, West Palm Beach, Fla. 33406.  Telephone 407/684-
        2225.  
   



        CONTACT:  CliniCorp, West Palm Beach -
                  Chris Harkins, CFO -
                  407/684-2225, ext. 18
        



Board of Supervisors Approves
Restructuring Plan for the County of Orange


        


            SANTA ANA, Calif. -- June 20, 1996 -- The County of
        Orange has emerged from bankruptcy, and today the Board of
        Supervisors unanimously approved an internal restructuring plan that
        updates an outdated system of governance and leads Orange County
        government into the 21st century.  The Board also voted to authorize
        Orange County Chief Executive Officer Jan Mittermeier to initiate
        the external restructuring process.  
        


            Mittermeier's two-pronged restructuring effort begins
        immediately by redesigning the CEO's office, then progresses to
        every department.  The second prong -- external restructuring
        -- involves discussions among the county and the cities, special
        districts and transportation agencies to define who will provide
        what services.

        
            "We are beginning a new era of good government in Orange
        County," said Mittermeier.  "We're cutting layers of management,
        streamlining services and reducing or eliminating counter-productive
        overhead charges.  In their place, we're instituting something I
        can't believe we've functioned without -- business plans for each
        department.  Everything I've learned in a career of public
        administration tells me this is a good move."  
   

     
        The phased plan begins immediately by:

  
        The county expects the internal restructuring effort to be
        completed by July 1, 1997.
       


        CONTACT:  County of Orange
                  Pat Ware, 714/834-6203
                     or
                  Laer Pearce & Associates, Irvine
                  Laer Pearce or Linda Martin, 714/753-1111

BEN FRANKLIN RETAIL STORES, INC. REPORTS
YEAR-END AND FISCAL FOURTH QUARTER RESULTS


        


            CAROL STREAM, Ill., June 20, 1996 - Ben Franklin
Retail
        Stores, Inc. (Nasdaq: BFRS), today reported net losses for the
        fiscal 1996 fourth quarter and full-year ended March 31, 1996 due
        primarily to a softened retail environment, weak wholesale operating
        performance due to lower service levels and restructuring
        initiatives to strengthen its retailing/wholesaling business.
        


            Robert Kendig, President and Chief Operating Officer stated,
        "While fiscal 1996 was a disappointing year for Ben Franklin, we
        took significant actions to strengthen the Company's future
        operating performance and provide additional liquidity.  While we
        anticipate lower sales in fiscal 1997, we believe the cost
        reductions that are now in place will make it possible to achieve
        improved future operating results."

        
        YEAR-END RESULTS


            Net sales for fiscal 1996 increased to $374.7 million as
        compared with $354.8 million in fiscal 1995, primarily as a result
        of increased retail sales from new openings of Company-owned craft
        stores.  Operating loss for fiscal 1996 was $34.5 million, as
        compared to operating income of $4.7 million in the prior fiscal
        year.  The operating loss of $34.5 million includes $13.2 million of
        charges and adjustments to cover costs associated with the closing
        of seven Company-owned craft superstores, relocation costs for
        certain facilities and adjustments and provisions for uncollectible
        trade receivables.  The operating loss also reflects reduced margins
        on retail sales from its Company-owned craft superstores due to
        heavy promotional activity.

        
            The Company reported a net loss of $27.1 million or $4.95 per
        share including the charges and adjustments of $13.2 million on a
        pre-tax basis as explained above.  For fiscal 1995, the Company
        reported net income of $1.6 million, or $.28 per share.
   

     
            Net sales for the fourth quarter of fiscal 1996 decreased to
        $68.6 million from $93.25 million in the prior year's quarter as a
        result of slow retail sales due to a weak retail environment in
        January and February, 1996 and weak wholesale sales due to low
        service levels. The operating loss for the fourth quarter of fiscal
        1996 was $20.9 million as compared to operating income of $1.4
        million in the fourth quarter of fiscal 1995.  The fourth quarter
        operating loss reflects primarily operating losses from lower sales
        as explained above and operating losses during the closing process
        of 7 Company-owned craft superstores.

        
            Net loss for the fourth quarter ended March 31, 1996 was $14.8
        million, or $2.71 per share as compared to net income of $420,000,
        or $.07 per share, in the prior year's quarter.
   

     
            Ben Franklin Retail Stores is a franchisor to more than 300
        craft stores, including craft superstores, and more than 530 variety
        stores, and wholesaler to holders of over 700 merchandise agreements
        throughout the United States and internationally.  In addition, the
        Company currently owns and operates 34 Ben Franklin Crafts
        Superstores, which are expanded-format, full service stores
        providing craft products and craft classes for their customers.  The
        Company is headquartered in Carol Stream, Illinois.
      


  
              BEN FRANKLIN RETAIL STORES, INC. AND SUBSIDIARIES
          CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
                 AND SUMMARIZED BALANCE SHEET DATA (UNAUDITED)

                   (In thousands, except per share amounts)
        
                              Fourth Quarter Ended   Twelve Months Ended
                                   March 31,              March 31,
                               1996        1995       1996        1995
        
        Income Statement Data:
        
        Net sales             $68,645    $93,237    $374,739    $354,788
        Operating costs
          Cost of sales,
            buying and
            occupancy          75,856     81,513     350,234     316,883
        General and
          administrative
          expenses             10,474      9,240      41,092      29,609
        Restructuring Charge       --         --      11,213          --
        Depreciation
          and amortization      3,187      1,114       6,703       3,585
        Total operating
          expenses             89,517     91,867     409,242     350,077
        Operating  income
          (loss)              (20,872)     1,370     (34,503)      4,711
        Interest expense - net (2,407)    (1,156)     (7,691)     (3,020)
        Other income            2,385        328       2,607         644
        Income (loss) before
          income tax expense
          (benefit)           (20,894)       542     (39,587)      2,335
        Income tax expense
          (benefit)            (6,052)       122     (12,524)        777
        Net Income (Loss)    $(14,842)      $420    $(27,063)     $1,558
        
                BEN FRANKLIN RETAIL STORES, INC. AND SUBSIDIARIES
            CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
                  AND SUMMARIZED BALANCE SHEET DATA (UNAUDITED)

                    (In thousands, except per share amounts)
        
                               Fourth Quarter Ended      Twelve Months Ended
                                      March 31,                 March 31,
                                  1996         1995          1996      1995
        
        Primary earnings
          per share
        Net Income             $ (2.71)     $   .07       $  (4.95)  $  .28
        Average Common Shares
          Outstanding            5,463        5,613           5,463   5,536
        
        Summarized Balance Sheet Data:
                                                      As of
                                     March 31, 1996           March 31, 1995
        Total Assets                     $205,200                 $219,500
        Working Capital                   60,900                   66,300
        Long-Term Obligations
          Excluding Current Portion       94,600                   61,000
        Stockholders' Equity              32,400                   59,500


        CONTACT:  David A. Brainard, Senior Vice President - Chief
        Financial Officer, of Ben Franklin Retail Stores, 708-462-6345