TCR_Public/960730.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


July 30, 1996



  1. Teleport Communications Group Reports 2nd Quarter Results
  2. Cambridge Biotech: Temporary Stay Issued by Bankruptcy Appellate Panel
  3. HUNTWAY PARTNERS, L.P. REPORTS SECOND QUARTER PROFIT





Return To The InterNet Bankruptcy Library Homepage


TELEPORT COMMUNICATIONS GROUP INC. REPORTS SECOND QUARTER 1996 RESULTS


        


            NEW YORK  --  July 30, 1996  --  The following are the
        "pro forma"  results assuming the completion of the reorganization
        as described in the company's initial public offering prospectus.  
        


            TCG (TCGI) reports second quarter revenue of $65.1 million, a
        51% increase over $43.2 million for the same period in 1995.
        Operating cash flow (earnings before interest, taxes, depreciation
        and amortization or EBITDA) was $2.3 million for the second quarter
        compared with $186 thousand for the same quarter in 1995.  From the
        $21.9 million in revenue growth in the second quarter, TCG increased
        operating cashflow (EBITDA) by $2.16 million.  


            For the six months ending June 30, 1996 versus the same period
        in 1995, revenues grew $40.3 million or 49% while EBITDA improved by
        $4.8 million.  "The second quarter demonstrates our ability to
        maximize the operating leverage on our 5,770 route miles of fiber
        while simultaneously growing the top line.  Our top priority is to
        grow revenues and cashflow concurrent with managing network and
        product expansion,"  said Bob Annunziata, TCG's Chairman and CEO.  
        


        Revenue Growth:  


            The growth in the second quarter was internally generated with
        service in 51 markets.  With its 21 digital telephone switches, TCG
        continues to transition the revenue mix to switched services, which
        grew at 17% over 1Q 1996 and 82% over 2Q 1995 and now represents 40%
        of total revenues.  At midyear 1995, switched services represented
        33% of total revenues.  
      

  
            TCG's focus continues to be a full service local provider with
        year-to-date construction in Cleveland, Ohio; Portland, Oregon; and
        Salt Lake City, Utah.  In the second half of 1996, construction is
        planned for Chattanooga, Knoxville, and Nashville, Tennessee and
        Birmingham, Alabama.  Completion of construction is expected by
        first quarter 1997 and our service will reach 55 markets.  
        


        Network Expansion:


            For the six months ending June 30, 1996, capital expenditures
        totaled $127 million.  Use of funds was primarily for expansion of
        the network by an additional 342 route miles; 3 new markets and
        locations in 339 additional on-net buildings.  In April, 1996 TCG
        successfully completed the installation of the South Florida switch,
        which began generating Switch Revenues for the second quarter.  For
        the second half of 1996, we anticipate switch revenue from 2
        additional cities currently under installation.  
        


        Operating Results:


            Sales, General and Administrative (SG&A) expenses grew at a
        slower rate in the second quarter than revenues.  SG&A was 34% of
        revenues in the second quarter versus 38% for the same period a year
        ago.  For six months year to date, SG&A was 35% compared to 40% a
        year ago.  Operating expenses as a percentage of revenues remain
        steady in the 62% range.  
      

  
            The net loss for the second quarter 1996 was $24.9 million
        compared with $13.9 million for the same period in 1995.  The
        expansion in net loss is due primarily to increased depreciation and
        interest expense associated with network and product expansion.  
        


        Financing:


            On June 27, TCG successfully completed the offering of the 27
        million shares of public Class A Common stock on the NASDAQ National
        Market.  The equity offering raised $432 million from an initial
        offering price of $16 per share.  Concurrently, TCG issued $925
        million of Senior Debt; $300 million in Senior Notes due July 1,
        2006 at 9.875% and $625 million in Senior Discount Notes at 11.125%.
        Total proceeds from the equity and debt financing totaled $1.3
        billion.  
      

  
        Historical Results:


            Historical results, which are presented in company's 10-Q, do
        not reflect the completion of the reorganization.  For the second
        quarter 1996, revenues totaled $57.1 million, an $18.3 million or a
        47% increase over the same period in 1995.  For six months ended
        June 30, 1996, revenues were $107.5 million or a 42% increase over
        the same period in 1995.  For the second quarter 1996 , EBITDA was
        $8.1 million and net loss was $19.7 million.  For year to date June
        30, 1996, EBITDA was $15.8 million and net loss was $38.4 million.  
      

  
            This press release, other than historical financial information,
        contains forward - looking statements that involve risks and
        uncertainties detailed in the company's SEC reports and registration
        statements.  Actual results may vary materially.  
      




                            TELEPORT COMMUNICATIONS GROUP, INC.
                           CONSOLIDATED STATEMENTS OF OPERATIONS

                                  ( Pro Forma(a) - unaudited)
        
        ($ in millions)
                                       Three Months Ended
                                            June 30
                                        1996        1995
        
        Revenue                           $ 65.1       $ 43.2
        Expenses:
         Operating                          40.6         26.6
         Selling, Gen, & Admin.             22.1         16.4
        Total Expenses                      62.7         43.0
        Depreciation/Amort.                 22.6         13.2
        Operating loss                     (20.2)       (13.0)
        Interest Income                       .6          1.4
        Interest Expense                   ( 5.4)        (2.7)
        Minority Interest                    1.0           .7
        Equity of Unconsol. Affiliates     (  .3)        ( .3)
        Loss Before Taxes                  (24.3)       (13.9)
        Income Tax Provision               (  .6)           -
        Net Loss                           (24.9)       (13.9)
        EPS (for shares as of 6/30/96)    $(  .16)        N.M.
        Shares outstanding (6/30/96)        158.9         N.M.
        
        (a) The proforma reflects the "managed" results assuming the
        completion of the Reorganization.

        
                   TELEPORT COMMUNICATIONS GROUP, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                        ( Pro Forma(a) - unaudited)
        
        ($ in millions)
                                       Six Months Ended
                                            June 30
                                        1996       1995
        Revenues                           $123.2      82.9
        Expenses:
        Operating                        77.1      51.3
        Selling, Gen, & Admin.           42.8      33.1
        Total Expenses                      119.9      84.4
        Depreciation/Amort                   43.9      24.7
        Operating loss                     ( 40.6)    (26.2)
        Interest Income                       1.6       2.6
        Interest Expense                    (10.9)    ( 4.5)
        Minority Interest                     2.0       1.4
        Equity of Unconsol. Affiliates      (  .6)     ( .8)
        Loss Before Taxes                   (48.5)    (27.5)
        Income Tax Provision                (  .8)    (  .3)
        Net Loss                            (49.3)    (27.8)
        EPS (for shares as of 6/30/96)      (0.31)      N.M.
        Shares outstanding (6/30/96)        158.9       N.M.


                   TELEPORT COMMUNICATIONS GROUP, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                        ( Historical - unaudited)
        ($ in millions)
                                       Three Months Ended
                                            June 30
                                        1996        1995
        Revenues:
          Telecom Service                 $ 45.2        32.0
          Management Fees                   11.9         6.8
        Total Revenues:                     57.1        38.8
        Expenses:
          Operating                         33.4        21.9
          Selling, Gen, & Admin.            15.6        11.5
          Depreciation/Amort                14.1         2.8
        Operating Loss                    (  6.0)      ( 2.8)
        Interest Income                      1.5          .9
        Interest Expense                  (  9.5)      ( 5.5)
        Minority Interest                    0.7         0.2
        Equity of Unconsol. Affiliates     ( 5.9)      ( 4.5)
        Loss Before Taxes                  (19.2)      (11.7)
        Income Tax Provision               (  .5)         --
        Net Loss                          ( 19.7)      (11.7)


                   TELEPORT COMMUNICATIONS GROUP, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                        ( Historical - unaudited)
        
        ($ in millions)
                                       Six Months Ended
                                            June 30
                                        1996      1995
        Revenues:
          Telecom Service                 $ 84.7      61.9
          Management Fees                   22.8      13.7
        Total Revenues:                    107.5      75.6
        Expenses:
          Operating                         62.3      43.0
          Selling, Gen, & Admin.            29.4      23.6
          Depreciation/Amort                26.9      15.5
        Operating Loss                     (11.2)    ( 6.5)
        Interest Income                      2.7       2.0
        Interest Expense                   (17.6)    (10.1)
        Minority Interest                     .8        .4
        Equity of Unconsol. Affiliates     (12.4)   (  8.7)
        Loss Before Taxes                  (37.6)    (22.9)
        Income Tax Provision               (  .8)    (  .3)
        Net Loss                           (38.4)    (23.2)
        

        CONTACT: Teleport Communications Group Inc.
                 Nancy Huson, Investor Relations
                 718/355-2154
                 Roger Cawley, Media
                 718/355-2122



CAMBRIDGE BIOTECH CORPORATION: TEMPORARY STAY ISSUED BY BANKRUPTCY APPELLATE PANEL


        


            WORCESTER, Mass., July 30, 1996  --  Cambridge Biotech
        Corporation
(OTC BULLETIN BOARD: CBCXQ) today announced that the
        Bankruptcy Appellate Panel for the First Circuit issued on July 29,
        1996, a temporary twenty-one day stay pending appeal of the United
        States Bankruptcy Court's July 18, 1996 order confirming CBC's plan
        of reorganization.   The stay was requested by Institut Pasteur and
        Pasteur Sanofi Diagnostics, who are appealing the Bankruptcy Court's
        confirmation of CBC's reorganization plan over their objections to
        CBC's assumption of various patent licenses owned by IP and PSD and
        licensed to CBC.  CBC has requested that IP and PSD be required to
        post a $57.5 million cash bond, plus interest, for the pendency of
        the appeal, and the Appellate Panel has given the parties seven days
        to submit memoranda regarding CBC's request for a bond.
        


            Cambridge Biotech Corporation, which filed for protection under
        Chapter 11 of the United States Bankruptcy Code on July 7, 1994, is
        a therapeutics and diagnostics company focusing on infectious
        diseases and cancer.  The company is developing and commercializing
        therapeutic and prophylactic vaccines for infectious diseases and
        immunotherapeutics for cancer.  The company's therapeutics business
        includes the Stimulon(TM) family of adjuvants, the most advanced of
        which, QS-21, is in clinical development through corporate and
        academic partners, and proprietary vaccines.  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, bovine mastitis and canine Lyme disease.
        Cambridge Biotech's remaining diagnostic business (to be sold to
        bioMerieux Vitek under the Chapter 11 plan) is primarily focused on
        retroviral and Lyme diseases.
        


            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 company's 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.
        


CONTACT:  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



HUNTWAY PARTNERS, L.P. REPORTS SECOND QUARTER PROFIT VERSUS LOSS A YEAR AGO


        


            NEWHALL, Calif., July 30 /PRNewswire/ - Huntway Partners, L.P.
        (NYSE: HWY) today reported a net profit of $1,251,000, or $.11 per
        unit, in the second quarter of 1996 versus a loss of $2,286,000, or
        $.20 per unit, a year ago.  Revenues increased 24% to $26,099,000
        from $21,061,000 in 1995.  For the first half of 1996, the
        partnership's loss declined to $968,000, or $.08 per unit, on
        revenues of $43,308,000 from a loss of $5,674,000, or $.49 per unit,
        on revenues of $33,339,000 in 1995.
        


            The Company attributed the improved operating performance for
        the quarter and the first half of the year to better operating
        margins on all products, particularly its light-end products.
        Prices for Huntway's light-end products rose in the second quarter
        commensurate with the dramatic rise in wholesale gasoline and diesel
        prices in California. Margins for the Company's asphalt products
        also improved during the first half of the year when compared to the
        prior year.  In 1995, asphalt margins were negatively impacted by
        the unusual level of rainfall that forced us to sell significant
        amounts of low-margin fuel oil.
        


            Huntway President and Chief Executive Officer, Juan Forster,
        said, "We enjoyed a strong second quarter as evidenced by earnings
        before interest and depreciation improving to $3,099,000 from a
        negative $381,000 last year.  For the first half of the year
        earnings before interest and depreciation improved to $2,684,000
        from a negative $1,951,000.  This improvement reflects improved
        operating margins on all products, particularly light-end products.
        Asphalt margins have also improved, although asphalt prices in
        Southern California remain depressed."
        


            As previously announced, on April 15, 1996, the Company outlined
        the terms of its restructuring agreement reached with the holders of
        86% of its senior debt and with its junior noteholder.  Under the
        terms of the agreement, in exchange for 13.8 million units, debt
        will be reduced to $25.6 million from $95.5 million effective
        January 1, 1996.  It also reported at that time that one lender,
        representing 14% of senior debt, has refused to approve the
        agreement and, as a result, the Company may be forced to file a
        "prepackaged" reorganization plan under the U.S. Bankruptcy Code to
        implement the restructuring.  The Company has continued to be unable
        to reach an agreement with this senior debt holder on a consensual
        plan of reorganization.  Therefore, on July 24, 1996, in order to
        effectuate the "prepackaged" reorganization plan, Huntway filed with
        the Securities and Exchange Commission a Consent Solicitation
        Disclosure Statement and related consent materials.  The consent
        solicitation materials seek the approval by common unitholders of
        the prepackaged reorganization plan and certain other matters.  The
        partnership anticipates that it will distribute definitive consent
        solicitation materials to common unitholders promptly following the
        applicable SEC review period.  Any such prepackaged plan will
        provide for the continuing and timely payment in full of all of the
        partnership's obligations to suppliers, other trade creditors and
        employees under normal trade terms.
        


            Had the debt restructuring described above been in place at the
        beginning of the first quarter of this year, interest expense for
        the second quarter and first half of 1996 would have been reduced
        $470,000 and $924,000, respectively, improving operating results by
        $.04 and $.08 per unit, respectively.
        


            Commenting on the restructuring, Mr. Forster added that, "The
        Company has expended considerable time and resources in order to
        complete the restructuring reached with the holder of 86% of its
        senior debt.  Additional expenses will be incurred in future months
        in completing the Securities and Exchange Commission filing,
        soliciting unitholder votes and filing and completing the
        prepackaged reorganization plan with the U.S. Bankruptcy Court."
        


            Huntway Partners, L.P. owns and operates two refineries at
        Wilmington and Benicia, California, which primarily process
        California crude oil to produce liquid asphalt for use in road
        construction and repair, as well as smaller amounts of gas oil,
        naphtha, kerosene distillate and bunker fuels.  The company's third
        refinery, at Coolidge, Arizona, is shut down although it may be
        reopened as a terminal in 1997 or beyond.
        


            The company's preference units are traded on the New York Stock
        Exchange under the symbol HWY.
        



                             HUNTWAY PARTNERS, L.P.
                            SELECTED FINANCIAL DATA

                FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996
                      (In Thousands Except per Unit Data)
        
                                   Three Months Ended  Six Months Ended
                                      June 30 June 30  June 30 June 30
                                      1996       1995    1996     1995
        
          Revenues                  $26,099  $21,061   $43,308  $33,339
          Crude Oil & Processing     22,076   20,527    38,834   33,366
          Selling & Administration      924      915     1,790    1,924
          Interest Expense            1,316    1,300     2,605    2,555
          Depreciation and
           Amortization                 532      605     1,047    1,168
          Net Gain/(Loss)            $1,251 $(2,286)    $(968) $(5,674)
          Gain/(Loss) per unit         $.11   $(.20)   $ (.08)   $(.49)
          Equivalent Units
           Outstanding               11,673   11,673    11,673   11,673
          Barrels Sold                1,157    1,137     2,044    1,887
        

                      CONSOLIDATED STATEMENT OF CASH FLOW
                             (Dollars in Thousands)
        
                              For the Six Month Period Ended
                                   June 30        June 30
                                      1996           1995
        
           Net Loss                     $(968)       $(5,674)
           Add: Depreciation
        & PIK Notes                  1,047          2,860
           Changes in Working Capital      417           (63)
           Cash Provided/(Used)
        by Operating Activities        496        (2,877)
           Cash Used by Investing
        Activities                 (1,965)          (297)
           Cash Used by Financing
        Activities                   (100)          (242)
           Net Decrease in Cash        (1,569)        (3,416)
           Cash at Beginning of Year     4,304          5,984
           Cash at End of Period        $2,735         $2,568
        

                           CONSOLIDATED BALANCE SHEET
                             (Dollars In Thousands)
        
                                     June 30    December 31
                                        1996           1995
                                 (Unaudited)      (Audited)
        
        Cash                          $2,735         $4,304
        Accounts Receivable            6,079          4,820
        Inventory                      6,150          3,320
        Prepaid Expenses                 929            676
        Current Assets                15,893         13,120
        Non-Current Assets            62,144         61,273
        Total Assets                 $78,037        $74,393
        
        Current Portion --
         Long-Term Debt               94,345        $94,445
        Accounts Payable               8,815          6,582
        Accrued Liabilities            6,009          3,530
        Current Liabilities          109,169        104,557
        Long-Term Obligations            350            350
        Partners Capital            (31,482)       (30,514)
        Total Liabilities and
         Partners Capital            $78,037        $74,393


CONTACT:  Warren J. Nelson, Executive Vice President and Chief
        Financial Officer of Huntway Partners, 805-286-1582; or Thomas E.
        Siebert of Siebert & Associates, 818-865-1594