/raid1/www/Hosts/bankrupt/TCR_Public/960722.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For:  July 22, 1996



  1. Banyan Systems announces second quarter results
  2. ZENITH ANNOUNCES SECOND-QUARTER LOSS
  3. USG CORPORATION REPORTS 4 PERCENT INCREASE IN SALES
  4. 'FOUNDER' OF AQUA VIE BEVERAGE CORP. FILES PLAN OF REORGANIZATION





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Banyan Systems announces second quarter results


        


            WESTBORO, Mass.  --  July 22, 1996  --  Banyan Systems
        Inc. (NASDAQ:BNYN), a leading provider of enterprise networking
        services, today reported that net income for the second quarter
        ending June 30, 1996, was $186,000, or $0.01 per share, compared
        with a net loss of $3,292,000, or $0.20 per share, for the same
        period in 1995.  
        


            Revenues for the second quarter of 1996 were even with 1995's
        second quarter at $30.2 million.  
        


            For the first six months of 1996, Banyan reported net income of
        $555,000, or $0.03 per share, compared with net income of $265,000,
        or $0.01 per share, for the same period last year.  Revenues for the
        six months were $60.1 million, compared with $70.5 million in the
        first half of 1995.
        


            Banyan's software revenues in the second quarter of 1996 were
        $25.7 million, compared with $24.3 million for the same period in
        1995.  Banyan's international business reported sales of $6.4
        million, compared with last year's second-quarter level of $7.1
        million.
        


            David C. Mahoney, Banyan's president and chief executive
        officer, stated, "Banyan's second-quarter performance reflects a
        substantial improvement over last year's second quarter.  The steps
        that we have taken over the past year to restructure Banyan, reduce
        costs and streamline our operations are allowing us to extend our
        technologies into new markets while also meeting the expanding needs
        of our existing end user customers.  The second quarter was marked
        by an increased level of business with existing customers as well as
        by the addition of a number of new accounts, and the announcement of
        several major partnering agreements.  
        


            Mahoney continued, "Our recent minority investment in
        Software.com, a leading provider of Internet messaging server
        software, underscores our commitment to develop innovative directory-
        based and messaging-based solutions for the Internet and intranet
        marketplaces.  In addition to our capital investment, we also have
        established a partnership to jointly develop intranet-based mail
        solutions which will integrate and leverage the strength of our
        world-class StreetTalk directory technology.
        


            "From both a visibility and marketing perspective,
        Coordinate.com, our Internet Products Division, continues to attract
        strong interest from both businesses and consumers as it has firmly
        established Switchboard as one of the Internet's most popular sites
        for locating people and information," commented Mahoney.  "In recent
        months, Coordinate.com also has introduced several new BeyondMail
        offerings for the Internet marketplace, such as the Personal
        Internet Edition for home consumers and BeyondMail Internet Edition
        for intranet-based messaging.  These initiatives clearly demonstrate
        the strength and applicability of Banyan's technology in the rapidly
        expanding market for Internet/intranet applications.  We are pleased
        that the response to these products has been enthusiastic."
        


            Mahoney added, "Since last year's second quarter, we have taken
        substantial action to revitalize our core end user software
        business.  Organizations worldwide that are looking to build and
        expand their enterprise networks continue to depend on Banyan's
        enterprise solutions.  In particular, we have been encouraged by the
        market's response to our NT-based StreetTalk solutions, which allows
        businesses to integrate Windows NT environments into their
        enterprise."
        


            Mahoney concluded, "Moving forward, we are focused on maximizing
        visibility for Switchboard, and expanding its business content,
        functionality and revenue potential.  We also see significant
        opportunities to broaden the use of BeyondMail's messaging solutions
        for both consumer and business Internet e-mail applications.  Our
        product development strategy also calls for the continued
        enhancement of our NT, VINES and other core enterprise networking
        solutions."
        


            The company noted that each of the above forward-looking
        statements were subject to change based on various important
        factors, including, without limitation, competitive actions in the
        marketplace and buying trends by businesses.  Further information on
        potential factors which could affect the company's financial results
        are included in the company's Form 10-K for the 1995 fiscal year,
        which was filed with the SEC at the end of March 1996, and the
        company's Form 10-Q for the period ended March 31, 1996, which was
        filed with the SEC at the end of April.
        


            The consolidated statements of operations and condensed balance
        sheets are attached.


        
                           Banyan Systems Incorporated
                       Consolidated Statements in Operations

                      (in thousands, except per share amounts)
        
                                 Three months ended       Six months ended
                                      June 30,                 June 30,
                                1996           1995       1996        1995
                                    (Unaudited)              (Unaudited)
        
        Revenues:
          Software               $25,745        $24,342    $50,676
        $58,021
          Support and training     3,895          5,209      8,364
        10,527
          Hardware                   561            603      1,093
        1,955
        Total revenues        30,201         30,154     60,133      70,503
        
        Cost of related revenues   6,270          7,020     12,241
        14,704
        
        Gross margin              23,931         23,134     47,892
        55,799
        %                        79%            77%        80%         79%
        
        Operating expenses:
          Sales and marketing     15,425         19,968     30,604
        38,691
          Product development      5,639          5,850     10,972
        11,556
          General & administrative 2,732          2,969      5,832
        6,158
        Total operating
           expenses           23,796         28,787     47,408      56,405
        
        Income (loss) from
          operations                 135        (5,653)        484
        (606)
        
        Other income, net            155            418        382
        896
        
        Income (loss) before
          income taxes               290        (5,235)        866
        290
        
        Provision (benefit) for
          income taxes               104        (1,943)        311
        25
        
        Net income (loss)           $186       ($3,292)       $555
        $265
        
        Net income (loss) per
          common share             $0.01        ($0.20)      $0.03
        $0.01
        
        Weighted average number
          of common and dilutive
          common equivalent shares
          outstanding             17,262        16,836       17,264
        17,657
        
       
        
                      Condensed Consolidated Balance Sheets
                                (in thousands)
        
                                             June 30,        Dec. 31,
                                               1996            1995
                                            (Unaudited)
        
        ASSETS
        
        Cash and marketable securities           $24,446         $31,263
        Accounts receivable, net                  28,857          24,288
        Income tax receivable                        233           6,042
        Other current assets                       7,821          10,454
        Property, equipment and other assets      25,406          21,896
        Deferred tax asset                        10,545          12,366
          Total assets                           $97,308        $106,309
        
        LIABILITIES AND STOCKHOLDERS' EQUITY
        
        Current liabilities                      $23,928         $36,378
        Deferred revenue                          24,771          22,323
        Other liabilities                          3,428           3,266
        Stockholders' equity                      45,181          44,342
          Total liabilities and stockholders'
        equity                               $97,308        $106,309
        

About Banyan Systems Inc.

        
        Banyan Systems (NASDAQ:BNYN) is a pioneer and leader in enterprise
        network services.  These products make it easy to find, share and
        manage information and resources within enterprise networks.
        Founded in 1983 and headquartered in Westboro, Mass., USA, the
        company markets products worldwide through authorized network
        integrators, resellers and international distributors.  Banyan can
        be reached on the World Wide Web at http//www.banyan.com.  StreetTalk
        is a product of Banyan Systems Inc. and not a product of McCarthy,
        Crisanti & Maffei Inc.
        


CONTACT: Banyan Systems Inc., Westboro
                 Jeffrey D. Glidden or Richard M. Spaulding    508/871-2271
        



ZENITH ANNOUNCES SECOND-QUARTER LOSS


        


            GLENVIEW, Ill., July 22, 1996 - Zenith Electronics
        Corporation (NYSE: ZE) today reported a second-quarter 1996 net loss
        of $33.2 million or 51 cents per share, compared with a net loss of
        $45.3 million or 97 cents per share, in the 1995 quarter.  (Second-
        quarter 1995 results included $18 million, or 39 cents per share, of
        restructuring charges.)
        


            Total second-quarter sales were $282 million in 1996 and $285
        million in 1995.
        


            The 1996 quarterly loss reflected continuing soft color TV
        industry conditions, lower prices and higher advertising expenses
        (resulting from distribution changes), as well as $5 million of one-
        time items, primarily consulting fees.  Major cost reductions from
        re-engineering programs, reduced material costs and improved
        efficiencies helped off- set some of the negative factors in the
        quarter.
        


            In consumer electronics, Zenith's sales increased in the
        quarter, although selling prices declined by $14 million, compared
        with the 1995 quarter.
        


            Domestic industry direct-view color TV sales to dealers, which
        were weaker in the quarter than in 1995, rebounded in June to a
        record pace.  Industry sales to dealers of giant-screen projection
        television sets were up again in the quarter.  Zenith's domestic
        color TV market share increased during the quarter in both key
        categories.
        


            Zenith's color TV unit sales in international markets were
        higher compared with the 1995 quarter, as were sales of commercial
        TV products for lodging, educational and health care markets.  Sales
        of color picture tubes to other manufacturers declined in the
        quarter.
        


            Sales of Network Systems products - primarily set-top boxes sold
        mostly to the cable television industry - declined in the quarter as
        industry demand for analog set-top boxes softened.  However, Zenith
        and industry sales of cable modems, while still relatively small,
        rose in the quarter.
        


            New alliances, products and technologies were announced in the
        second quarter:
        


            For the first six months of 1996, Zenith reported a net loss of
        $68.5 million, or $1.06 per share, compared with a loss of $69.6
        million, or $1.50 per share.  First-half sales were $520 million in
        1996 and $547 million in 1995.
        


                          ZENITH ELECTRONICS CORPORATION
                STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)
                     (In millions, except per share amounts)
        
                                   Three months ended    Six months ended
                                   June 29,   July 1,   June 29,   July 1,
                                     1996      1995       1996      1995
        
        Net sales                  $282.1    $284.6     $519.5     $546.7
        Costs, expenses and other
          cost of products sold     269.7     274.6      449.0      520.8
        Selling, general and
          administrative             37.0      26.7      71.8        55.7
        Engineering and
          research                   11.7      11.6      22.9        23.4
        Other operating expense
          (income), net              (5.8)     (5.9)     (9.9)      (10.4)
        Restructuring and other
          charges                      --      18.0         --       18.0
        
        Operating income
         (loss)                     (30.5)    (40.4)    (64.3)      (60.8)
        Gain on asset sales,
         net                           --        --        0.3         --
        Interest expense             (3.6)     (5.3)      (6.9)      (9.4)
        Interest income               0.9       0.2        2.4        0.4
        
        Income (loss) before
          income taxes              (33.2)    (45.5)     (68.5)     (69.8)
        Income taxes (credit)          --      (0.2)        --       (0.2)
        Net income (loss)         $ (33.2)  $ (45.3)   $ (68.5)   $ (69.6)
        Net income (loss)
          per common share        $ (0.51)  $ (0.97)   $ (1.06)   $ (1.50)
        
        Weighted average shares
          outstanding                65.0      46.9       64.3       46.4
        

            NOTE:  Certain prior-year amounts have been reclassified to
        conform with the presentation currently used.
        


CONTACT:  John Taylor, 847-391-8181, or Bill McNitt, investors,
        847-391-7713, both of Zenith Electronic Corporation



USG CORPORATION REPORTS 4 PERCENT INCREASE IN SALES, 7 PERCENT INCREASE IN EBITDA(A) DURING SECOND QUARTER OF 1996


        


            CHICAGO, July 22, 1996 - USG
Corporation
(NYSE: USG)
        today reported 1996 second-quarter EBITDA of $110 million and net
        sales of $642 million, both records since its 1993 restructuring.
        These results compare favorably with 1995's second-quarter EBITDA of
        $103 million and net sales of $615 million.  Net sales for the first
        six months of 1996 were $1,244 million, up 3 percent from net sales
        of $1,213 million for the same period in 1995.  EBITDA for the six
        months was $189 million, down 10 percent from $209 million last
        year.
        


            Commenting on USG's performance, Chairman William C. Foote said,
        "After the difficult winter weather of the first quarter, earnings
        rebounded sharply in the second quarter driven by strong demand for
        USG's gypsum wallboard and suspended ceilings products.  As we enter
        the third quarter, shipments of these products continue to be at
        high levels.  Based upon demand, we implemented in July an $8 per
        thousand square foot wallboard price increase and a 3 percent price
        increase on ceiling tile and suspension grid.  Our outlook is
        positive for the balance of 1996.  The U.S. construction market
        should continue to benefit from ongoing moderate economic growth and
        relatively low interest rates.  Conditions in Asia and Latin America
        are expected to remain favorable.  Finally, Europe and Canada are
        starting to show some signs of gradual economic improvement.
        


            USG made further progress in the second quarter toward its two-
        prong strategy of investing for growth and increasing financial
        flexibility," added Foote.  "Capital spending during the first six
        months was $73 million, and the corporation reduced the principal
        value of its debt by $62 million."
        


            Capital investments under way or completed to date at United
        States Gypsum Company include various projects to lower
        manufacturing costs, increase wallboard-paper manufacturing capacity
        and increase joint compound capacity.  USG's worldwide ceilings
        business completed its new Auratone ceiling tile production line at
        the Greenville, Miss., plant three months ahead of schedule and
        started ceiling suspension grid manufacturing in Taiwan and Saudi
        Arabia.  It continues to work on reducing the manufacturing cost of
        ceiling tile.
        


        NORTH AMERICAN GYPSUM

            USG's North American gypsum business recorded net sales of $512
        million and EBITDA of $102 million, increases of 6 percent and 7
        percent, respectively, over the second quarter of 1995.  Record
        second-quarter U.S. shipments of gypsum wallboard, joint treatment
        and DUROCK cement board,  recently improved  activity in the
        Canadian construction industry,  and lower wastepaper furnish costs
        were the primary reasons for these increases.  Lower wastepaper
        furnish prices positively affected EBITDA by about $16 million vs.
        the second quarter of 1995.
       


            U.S. Gypsum's wallboard plants ran at 93 percent of capacity in
        the second quarter, and its average selling price of $106.78 per
        thousand square feet was about 3 percent higher than in the first
        quarter of 1996, but was 5 percent lower than in the second quarter
        of 1995.  The company's second-quarter shipments of gypsum wallboard
        totaled 1.969 billion square feet, a record for any second quarter
        and 9 percent above second-quarter 1995 shipments of 1.801 billion
        square feet.  The first six months shipments totaled 3.850 billion
        square feet, a record for the period.
        


        WORLDWIDE CEILINGS


            USG's worldwide ceilings business recorded net sales of $154
        million compared with $153 million in the second quarter of 1995,
        while EBITDA of $17 million was unchanged.   Worldwide ceilings'
        1996 second quarter and first six months results reflect record
        ceiling tile shipments attributable to the improving U.S. commercial
        renovation market and strong demand from Latin America and Asia.
        However, soft economic conditions in Europe continued to negatively
        affect EBITDA for the second quarter and first six months of 1996.
       


        CONSOLIDATED EARNINGS AND EARNINGS-PER-SHARE ADJUSTMENTS

            
Interest expense declined $5 million, or 20 percent, compared
        with the second quarter of 1995, primarily reflecting a lower level
        of debt in 1996.  Selling and administrative expenses increased $5
        million, or 8 percent, largely because of a joint initiative by
        USG's worldwide ceilings and North American gypsum units to upgrade
        their order entry and fulfillment computer systems as well as
        increased compensation and benefits expenses and marketing program
        expenditures.
       


            Excess reorganization value, which was established in connection
        with USG's financial restructuring in May 1993, is currently being
        amortized over a five-year period.  Another adjustment relating to
        the difference between the face value and the market value of the
        corporation's debt also was recorded.  The amortization of these
        non- cash, no-tax-impact adjustments reduced USG's second-quarter
        1996 net earnings by $43 million, or $0.91 per share.
        


            USG Corporation is a Fortune 500 company with subsidiaries that
        are market leaders in their key product groups of gypsum wallboard,
        joint compound and related gypsum products; ceiling tile and grid;
        and building products distribution.  For more information about USG
        Corporation, visit the USG home page at http://www.usgcorp.com.
        



                                USG CORPORATION
                 (dollars in millions except per share figures)
        
        Periods ended June 30             Three Months       Six Months
                                          1996    1995     1996       1995
        Condensed Consolidated Statement of Earnings:
        
        Net sales                         $642    $615   $1,244     $1,213
        Cost of
         products sold                     482     466      953        912
        Gross profit                       160     149      291        301
        Selling and
         administrative
         expenses                           65      60      132        120
        Amortization of excess
         reorganization
         value (a)                          42      42       84         84
        Operating profit                    53      47       75         97
        Interest expense                    20      25       39         52
        Interest income                     (1)     (1)      (1)        (3)
        Other
         expense, net                        1      --        1         --
        Taxes on income                     29      26       47         53
        Net earnings/
         (loss) (b)                          4      (3)     (11)        (5)
        Net earnings/
         (loss)
         per common
         share (b)(c)                     0.09   (0.07)   (0.23)     (0.12)
        
        Other Financial Information:
        EBITDA (d)                         110     103      189        209
        EBITDA margin %                   17.1%   16.7%    15.2%      17.2%
        Depreciation
         and depletion                      15      14       30         28
        Capital
         expenditures                       31      32       73         56
        Cash and cash
         equivalents
        
        (As of June 30)                                      54        103
        Principal amount
         of total debt
        (As of June 30)                                     864      1,022
        Average common
         shares outstanding(c) 45,506,148 45,088,163 45,466,664 45,086,916
        

            (a) In 1993, in connection with a debt restructuring, USG
        Corporation recorded $851 million of reorganization value in excess
        of identifiable assets, which is currently being amortized against
        earnings over a five-year period.
        


            (b) The noncash amortization of excess reorganization value and
        reorganization debt discount (included in interest expense) reduced
        reported net earnings by $43 million, or $0.91 per share, in the
        three months ended June 30, 1996 and by $86 million, or $1.88 per
        share, in the six months ended June 30, 1996.  The noncash
        amortizations reduced earnings for the respective 1995 periods by
        $43 million, or $0.95 per share, and $86 million, or $1.92 per
        share.
        


            (c) Net earnings per common share of $0.09 in the three months
        ended June 30, 1996 was calculated using diluted common shares of
        47,465,887 which included common stock equivalents of 1,959,739.  In
        accordance with APB Opinion No. 15, net earnings per common share is
        subject to the impact of dilution.  Dilution is not calculated when
        net losses are incurred, which, in the case of USG Corporation, have
        occurred in previous quarters and may occur in future quarters as a
        result of the restructuring-related amortizations described in
        footnotes (a) and (b).
        


            (d) EBITDA represents earnings before interest, taxes,
        depreciation, depletion and amortization and items classified as
        other expense, net. The Corporation believes EBITDA is helpful in
        understanding cash flow generated from operations that is available
        for taxes, debt service and capital expenditures.
        



                                USG CORPORATION
                             (dollars in millions)
        
        Core Business Results:
        Periods ended June 30
        Net Sales
                                           Three Months    Six Months
                                           1996   1995      1996  1995
        U.S. Gypsum
        Company                           $ 338   $325     $660   $657
        L&W Supply
        Corporation                         212    191      400    365
        CGC Inc. (gypsum)                    28     27       51     52
        Other
        subsidiaries (a)                     19     16       35     33
        Eliminations                        (85)   (76)    (161)  (154)
        North American
        Gypsum                              512    483      985    953
        USG Interiors, Inc.                 100     95      196    190
        USG International                    57     61      112    117
        CGC Inc. (interiors)                  7      6       15     14
        Eliminations                        (10)    (9)     (20)   (19)
        Worldwide
        Ceilings                            154     153     303    302
        Eliminations                        (24)    (21)    (44)   (42)
        Total USG
        Corporation                         642     615   1,244  1,213
        
        Core Business Results:
        Periods ended June 30                 EBITDA
                                           Three Months      Six Months
                                           1996   1995       1996  1995
        U.S. Gypsum
        Company                            $ 84    $81       $154  $167
        L&W Supply
        Corporation                           7      7         12    11
        CGC Inc. (gypsum)                     4      2          6     5
        Other
        subsidiaries (a)                      7      5         11    10
        North
        American Gypsum                     102     95        183   193
        USG
        Interiors, Inc.                      14     15         26    30
        USG International                     2      1         (3)    3
        CGC Inc.
        (interiors)                           1      1           2    2
        Worldwide Ceilings                   17     17          25   35
        Corporate                            (9)    (9)        (19) (19)
        Total USG
        Corporation                         110    103         189  209
        


            (a) Includes Yeso Panamericano, S.A. de C.V., a Mexican building
        products business, Gypsum Transportation Limited, a Bermuda shipping
        company and USG Canadian Mining Ltd., a mining operation in Nova
        Scotia.


CONTACT:  USG Corporation:  Matthew P. Gonring, vice president,
        Corporate Communications, 312/606-4124, or Keith E. Kahl, manager,
        Investor Relations Department, 312/606-4125.



'FOUNDER' OF AQUA VIE BEVERAGE CORPORATION GOES THE DISTANCE, AND FILES HIS PLAN OF REORGANIZATION


        


            BELLEVUE, Wash., July 22, 1996 - AQUA VIE ADVANCE
        COMPANY, announced today that Tom Gillespie, the Founder and past
        CEO of Aqua Vie Beverage Corporation, filed a proposed Plan of
        Reorganization and Disclosure Statement with the Federal Bankruptcy
        Court, to recommence the Company's operations, subject to Court
        approval.  Mr. Gillespie's proposed Plan of Reorganization was filed
        18 months to the day, from the filing of an "Involuntary chapter 11
        petition" against Aqua Vie Beverage Corporation that was part of an
        unsuccessful hostile takeover attempt of the Company, in January
        1995.
        


            At the time of the original petition, an interim trustee was
        appointed which technically eliminated the Company's ability
        complete the launch of its "all natural" functional beverage line
        called Hydrators(TM).
        


            Through Aqua Vie Advance Company, Mr. Gillespie, is presently
        completing an initial administrative loan of up to $750,000, which
        along with his proposed Plan, appears to have the full support of
        the office of the trustee.
        


            In commenting on the announcement, Mr. Gillespie said, "with the
        forces that have been working against this reorganization, it would
        have been difficult to even propose a Plan, if it hadn't been for
        the support of many creditors, shareholders, professionals, and
        friends of the Company."
        


            In May, 1996 the Assistant U.S. Attorney filed a motion to
        convert the case to chapter 7, or to dismiss it.  On June 15, 1996,
        the trustee, who has managed the affairs of the Company for the past
        17 months recommended, and filed a Plan of Liquidation for Aqua Vie
        Beverage Corporation.
        


            On July 17, 1996, Tom Gillespie, Founder of Aqua Vie Beverage
        Corporation, filed a proposed Plan of Reorganization and Disclosure
        Statement for Aqua Vie Beverage Corporation, for the benefit of
        creditors and shareholders in the Company, and for the restart of
        the Company's operations.
        


            Additional information about Aqua Vie Beverage Corporation can
        be found on the Internet at:
        


          " target=_new>http://ourworld.compuserve.com/homepage/aquavie/aviea.htm">http://ourworld.compuserve.com/homepage/aquavie/aviea.htm


CONTACT:  Tom Gillespie of Aqua Vie, 206-990-6411