TCR_Public/960624.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  June 24, 1996



  1. Fruehauf Trailer Reports Completion of Foreign Asset Sale
  2. MacGregor trustee withdraws Riddell settlement
  3. AD HOC COMMITTEE OF THE OLYMPIA & YORK MAIDEN LANE NOTEHOLDERS RELEASES INFORMATION





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Fruehauf Trailer Reports Completion of Foreign Asset Sale, Interest Payment on Senior Notes, and Improved Liquidity


        


            INDIANAPOLIS, IN -- June 24, 1996 -- Fruehauf Trailer
        Corporation (NYSE:FTC) today announced that it has completed the
        sale of the Company's foreign assets, excluding Mexico, generating
        proceeds of approximately $20.3 million.  
        


            The Company has made the $4.6 million interest payment on its
        Senior Notes originally scheduled for May 1, 1996 and as a result
        has cured the nonpayment default.  After payment of transaction fees
        and adjustments, proceeds of approximately $7.5 million will be used
        in an offer to repurchase the Company's Senior Notes.  This
        repurchase represents approximately 12 percent of the Senior Notes,
        leaving approximately $55 million outstanding.  
        


            In the sale transaction, the Company retained $6.0 million for
        general corporate purposes.  The sale also provides the Company an
        expansion of working capital availability under the revolving credit
        facility of up to $1.0 million.  Furthermore, the Company has
        entered into a new loan facility of $3.5 million for the payment of
        trailing liabilities.  These three actions have provided the Company
        with increased liquidity and financial flexibility.  
        


            Thomas B. Roller, President and Chief Executive Officer,
        commented, "The completion of the foreign asset sale is an important
        component of our strategic plan to deleverage the Company and allows
        us to fully focus on our core North American operations.  While we
        no longer have a direct financial interest, we will continue the
        longstanding and beneficial technology sharing arrangements with
        these affiliates that have served us so well in the past."  
        


            Fruehauf Trailer Corporation is one of the leading manufacturers
        of truck trailers, producing, marketing, and servicing the
        industry's widest range of dry freight van, refrigerated van,
        platform, dump and liquid and dry bulk tank trailers.  Among the
        largest suppliers of trailer parts in North America, Fruehauf
        products are sold throughout the truck trailer industry's largest
        Company-owned dealer and authorized independent dealer network in
        North America.  
        


        CONTACT:  Fruehauf Trailer Corp., Indianapolis
                  Michael D. Picchi, 317/630-3000
        



RIDDELL SPORTS INC. REMAINS CONFIDENT FRAUDULENT TRANSFER CASES ARE WITHOUT MERIT DESPITE TRUSTEE'S WITHDRAW OF SETTLEMENT


        


            NEW YORK, June 24, 1996  - Riddell Sports Inc. (Nasdaq:
        RIDL) today announced that the bankruptcy trustees of MacGregor
        Sporting Goods, Inc.
(now known as M Holdings Inc.) ("MAC I") and
        MGS Acquisition, Inc. withdrew their motion to approve the
        previously announced settlement of the two "fraudulent transfer"
        suits in which Riddell and certain others were named defendants.
        The trustees withdrawal was made after the Creditors' Committee
        proposed a Plan of Reorganization of MAC I.  This plan was recently
        proposed in opposition to the settlement entered into by the court-
        appointed trustees and Riddell, and seeks to replace the trustees
        and continue the fraudulent transfer litigations.
        


            The proposed Creditors' Committee Plan is subject to acceptance
        by the creditors and court approval.  The Company does not
        anticipate that an adjustment to the reserve previously established
        for these actions will be made due to this event, but cautions that
        there can be no assurance that the matters will ultimately be
        resolved at an amount within the reserve.
        


            The Company entered into the settlement as an alternative to the
        expense of litigation, and while disappointed that the settlement
        will not be submitted by the trustees for court approval, the
        Company remains confident that the fraudulent transfer cases are
        without merit and intends to vigorously defend against them.
        


            Riddell Sports Inc. is the world's leading manufacturer of
        football equipment.  The Company sells sporting goods products
        (including mini- and full-size helmets made for display purposes for
        collectors), shoulder pads and other sports protective equipment
        under the Riddell and ProEdge brands and provides reconditioning
        services under the Riddell/All-American name.  The Company also
        licenses the Riddell and MacGregor trademarks for use on athletic
        footwear, leisure apparel and sports equipment.
        


CONTACT:  Lisa Marroni of Riddell Sports, 212-826-4300



AD HOC COMMITTEE OF THE OLYMPIA & YORK MAIDEN LANE NOTEHOLDERS RELEASES INFORMATION


        
            NEW YORK, June 24, 1996  - The ad hoc Committee of the
        Olympia & York Maiden Lane Noteholders (the "Committee") has
        released the following information:
        


            Foreclosure.  On May 30, 1996, The Bank of New York, as Trustee
        for the holders of the 103/8% Secured Notes Due 1995 of Olympia &
        York Maiden Lane Finance Corp. (the "Issuer"), notified the holders
        that the Supreme Court of the State of New York had issued a
        decision granting the Trustee's motion for a judgment of foreclosure
        and sale, and that the Trustee had presented to the Court a proposed
        Order and Judgment of Foreclosure and Sale (collectively, the
        "Order") for the Court's signature.  The Trustee and the Committee
        are pleased to announce that the Court has signed the proposed Order
        which Order was entered today, June 24, 1996.  Pursuant to the
        Order, 59 Maiden Lane (the "Property") may be sold at public auction
        at the Rotunda of 60 Centre St. by the Referee appointed by the
        Court; and the Referee must give public notice of the time and place
        of the sale.  No date for the sale has been selected as yet.
        


            Home Insurance.  In the May 30 notice, the holders were also
        advised that The Home Insurance Company, which leases 583,000 square
        feet at 59 Maiden Lane, or 55% of the total building, and the New
        Hampshire Insurance Department had met recently with the Trustee and
        the Committee to discuss Home's financial situation, and that Home
        submitted a proposal to restructure its lease.  The proposal
        includes the following terms: (i) reducing the premises leased by
        returning 13 floors to the landlord; (ii) terminating the lease on
        December 31, 1997; and (iii) making a single upfront payment of $24
        million, plus an assignment of certain sublease rental payments of
        approximately $207,000 per month, which total $8.2 million.
        Inasmuch as the Committee does not believe that the foregoing
        proposal can be a realistic starting point for meaningful
        discussions concerning the lease, the Committee has not responded to
        date to the proposal.  The Committee understands that Olympia & York
        is of the same view and also has not responded to Home's proposal.
        Home's current annual base rent (excluding electric inclusion and
        additional rent) is $31,179,619.
        


            On June 1, 1996, Home failed to pay the monthly rent that was
        due and owing under its lease with Olympia & York.  On June 10,
        1996, the Trustee sent Home a Notice of Default.  Home has
        challenged the validity of the Trustee's Notice on the grounds that
        the Trustee is not the landlord of the property.  Rather than
        engaging in a prolonged legal debate on this issue, the Trustee
        requested Olympia & York to send a Notice of Default to Home.
        Olympia & York sent a Notice of Default to Home on June 18, 1996.
        Under the terms of Home's lease, the landlord can exercise rights
        and remedies against Home if Home fails to pay the rent within 10
        days from the giving of the Notice of Default.  The June rent has
        not been paid to date.  On June 20, 1996, Home issued a press
        release in which it announced that it had "stopped paying rent for
        its 59 Maiden Lane headquarters."
        


            Olympia & York has retained the law firm of Bachner, Tally,
        Polevoy & Misher LLP to represent it in connection with any actions
        taken against Home in this matter.  Olympia & York has promised to
        coordinate with the Trustee in connection with any action against
        Home.
        


            Restructuring of the Notes.  As previously reported, the
        Committee and the Trustee have been in discussions with Olympia &
        York, from time to time, concerning a consensual restructuring of
        the debt evidenced by the Notes.  At the present time, the Committee
        does not believe that  a consensual restructuring is likely to occur
        with Olympia & York's current management.  Separately, twenty
        Olympia & York affiliated companies have commenced cases with the
        United States Bankruptcy Court for the Southern District of New York
        under Chapter 11 of the Bankruptcy Code.  By orders of the
        Bankruptcy Court, those cases have been consolidated for procedural
        purposes only and are being jointly administered by the Bankruptcy
        Court (the "Affiliated Cases").  Neither the Issuer nor Olympia &
        York Maiden Lane Company, L.L.C., the Owner of 59 Maiden Lane, have
        commenced cases under Chapter 11 of the Code.  However, O&Y (U.S.)
        Development Company, L.P. and O&Y (U.S.) Development General Partner
        Corp., owners of all of the membership interests in the Owner, are
        among the twenty Olympia & York companies whose cases are being
        administered in the Affiliated Cases.  A Plan of Reorganization and
        Disclosure Statement were filed in the Affiliated Cases and provide
        for the liquidation of all "non-core" properties, including 59
        Maiden Lane, by one of three liquidating trusts to be formed under
        the Plan.
        


            In light of the impending foreclosure sale, the Home situation,
        the nature of the discussions with Olympia & York and the treatment
        of 59 Maiden Lane under the Affiliated Cases' Plan, the Committee
        has been principally focusing on the possibility of the filing of an
        involuntary bankruptcy petition against the Issuer.  The terms of a
        draft plan of reorganization being discussed by the Committee would
        allow for one of two options: either the transfer of the ownership
        of the Property to a real estate investment trust ("REIT"), whose
        equity interests would be owned solely by the Noteholders, which
        interests would be distributed to the holders in exchange for their
        Notes, or the Property would be sold in a public auction, and the
        net sales proceeds distributed to the holders.
        


            Transfer Taxes.  One of the considerations in choosing between
        the two options relates to the possible imposition of New York State
        and New York City transfer taxes in connection with any sale or
        transfer of the Property.  Normally, the N.Y.S. transfer tax is
        imposed at the rate of 0.4% of the consideration for the transfer,
        while the N.Y.C. tax is imposed at a rate of 2.625%.  While,
        ordinarily, the transfer tax would be assessed against the sales
        price or market value of the property transferred, if the Trustee
        were to bid-in the debt, the consideration against which the tax
        would be imposed would be at least the amount of the outstanding
        debt, for N.Y.S. (but not N.Y.C.) tax purposes.  In other words,
        since the total amount of principal and interest outstanding exceeds
        $200,000,000, the N.Y.S. tax alone would be at least $800,000.
        Pursuant to the Bankruptcy Code, transfer taxes are typically not
        imposed in connection with transfers made pursuant to a confirmed
        plan of reorganization.  While the Property is owned by the Owner,
        not the Issuer, in a similar situation involving a former Olympia &
        York property, the Committee understands that the taxing authorities
        did not impose taxes on the transfer of the property notwithstanding
        that only the issuer of the debt securities, not the property owner,
        reorganized under Chapter 11. Obviously, no assurances can be given
        that the taxing authorities will take the same position with respect
        to a transfer of the Property if only the Issuer went through a
        bankruptcy proceeding, not the Owner.  A double bankruptcy, of both
        the Issuer and the Owner, should exempt any transfer from these
        taxes, but without O&Y's cooperation, there might be practical
        difficulties in accomplishing the same.
        


            No decision has been made to date as to either of these options,
        i.e., transferring the Property to a REIT or selling the Property to
        a third party, or as to the filing of an involuntary petition.  The
        Trustee and the Committee await the views of the Noteholders at the
        June 25, 1996, meeting previously scheduled on this and other
        issues.
        


            Cash Collateral. On another matter, in the May 30 notice, the
        Trustee reported that it held at the time approximately $20 million
        in cash.  That amount fluctuates regularly as additional rental
        income is received and operating expenses are paid.  On June 21,
        that amount had declined to approximately $ 16.6 million due, in
        part, to the prepayment by the Trustee of the semi-annual real
        estate taxes which are payable on July 1, and to Home's non-payment
        of the June 1 rent.  Due to the prepayment of taxes, the holders
        were able to benefit from a special 5% discount offered by the City,
        which totaled over $13,000.
        


            Financial Statements.  Olympia & York has not delivered to the
        Trustee any audited or unaudited financial statements during the
        past four years. In connection with tax certiorari proceedings filed
        by O&Y with respect to 59 Maiden Lane, O&Y's accountants, Margolin,
        Winer & Evens LLP, have prepared Schedules of Income and Expenses
        for calendar years 1994-5.  The schedules show that for the 1995
        calendar year, total gross income was $52,428,303 and total
        expenses, including real estate taxes (but not including debt
        service payments on the Notes) was $21,567,519, leaving net income
        of $30,860,784 for the year.
        


            Federal Reserve Bank.  In addition to the $16.6 million in cash
        described above, the Trustee is holding a U.S. Treasury security in
        the face amount of $10,455,000, which represents collateral
        delivered by O&Y to secure payment of certain obligations owing to
        the Federal Reserve Bank ("FRB"), a tenant at 59 Maiden Lane, during
        the 1997 calendar year, in the event of a lease termination or a
        partial or total taking of the leased premises.  That collateral was
        delivered by O&Y pursuant to a Lease Amendment under which FRB
        prepaid to O&Y its 1997 rent obligation of $9.6 million back in
        1988.  If neither a lease termination nor a partial or total taking
        of the leased premises occurs during 1997, the Trustee would be
        entitled to receive and apply the collateral, on behalf of the
        holders, at any time after December 31, 1997, in which case the
        Noteholders would then receive the equivalent of the FRB lease
        payment for calendar year 1997.
        


            Under the Lease Amendment.  O&Y was also obligated to reimburse
        FRB $1.2 million in March of this year and $1.2 million in March of
        1998 for certain tenant improvements made and to be made by FRB on
        the Property. That obligation was supported by a Letter of Credit
        issued by Swiss Bank in the amount of $2.4 million which covered
        both the March 1996 and the March 1998 payment obligations.  In late
        February of this year, O&Y requested that the Trustee pay the $1.2
        million to FRB from the cash flow generated by the Property.  The
        Trustee, with the support of the Committee, rejected O&Y's request.
        Instead, FRB drew down the entire $2.4 million under its Letter of
        Credit, which extinguished the Owner's reimbursement obligations
        under FRB's lease for both 1996 and 1998.
        


CONTACT:  Mike Pascale of Abernathy MacGregor Scanlon, 212-371-5999