TCR_Public/960807.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


August 7, 1996



  1. Forest Oil Corp. releases second quarter 1996 results
  2. Finger/Matrix announces first product test ties
  3. Holly Products announces year end results
  4. Fleming Companies, Inc. and Megafoods Stores, Inc. Joint Statement
  5. PBGC Urges Smith Corona to Keep Pensions Ongoing





Return To The InterNet Bankruptcy Library Homepage



Forest Oil Corp. releases second quarter 1996 results


        

       
            DENVER, CO  --  Aug. 7, 1996  --  Forest Oil Corporation
        announced today a pre-tax loss of $1.9 million in the second quarter
        of 1996, compared to a pre-tax loss of $4.8 million in the second
        quarter of 1995.  
        


            The pre-tax loss in the first six months of 1996 was $153,000
        compared to a pre-tax loss of $8.0 million in the first six months
        of 1995.  For the second quarter of 1996, Forest's net loss was $2.9
        million and the net loss attributable to common stock after
        preferred stock dividends was $3.4 million or $.14 per share,
        compared to a net loss of $4.8 million and a net loss attributable
        to common stock after preferred stock dividends of $5.4 million or
        $.94 per share for the second quarter of 1995.  
        


            For the first six months of 1996, Forest's net loss was $3.3
        million and the net loss attributable to common stock after
        preferred stock dividends was $4.4 million or $.19 per share,
        compared to a net loss of $8.0 million and a net loss attributable
        to common stock after preferred stock dividends of $9.0 million or
        $1.59 per share for the first six months of 1995.  
        


            The improved results for the second quarter and first six months
        of 1996 were attributable primarily to increased natural gas and
        liquids production as a result of significant Canadian acquisitions
        completed in December 1995 and January 1996, and the contribution
        made by Forest's Canadian marketing and processing subsidiary,
        ProMark, that was also acquired in January 1996.  
        


            Earnings from Forest's oil and gas operations (consisting of oil
        and gas sales less oil and gas production and general and
        administrative expense) were $17.8 million and $35.8 million in the
        second quarter and first six months of 1996, respectively, while
        marketing and processing operations earned $1.0 million and $2.9
        million in the second quarter and first six months of 1996,
        respectively.  
        


            Oil and gas operations earned $12.7 million in the first quarter
        of 1995 and $27.6 million in the first six months of 1995; there
        were no marketing and processing operations in 1995.  
        


            Oil and gas sales revenue increased 42% to $28.9 million for the
        second quarter of 1996 from $20.4 million in the second quarter of
        1995, and increased 32% to $56.5 million for the first six months of
        1996 from $42.7 million for the first six months of 1995.  The
        increases are attributable to higher production as a result of the
        Canadian acquisitions.  
        


            Production volumes for natural gas in the second quarter of 1996
        and first six months of 1996 increased 18% and 8%, respectively,
        over the comparable 1995 periods.  Production volumes for liquids
        (consisting of oil, condensate and natural gas liquids) were 102%
        and 89% higher in the second quarter and first six months of 1996,
        respectively, than in the comparable 1995 periods.  
        


            Oil and gas production expense was $8.4 million in the second
        quarter of 1996 and $15.9 million in the first six months of 1996,
        representing increases of 42% over the comparable periods of 1995,
        due primarily to acquisition of Canadian properties.  On a per unit
        basis, production expenses were $.60 and $.59 per mcfe during the
        second quarter and first six months of 1996, respectively,
        representing increases of approximately 7% and 16%, respectively,
        compared to amounts incurred during the comparable 1995 periods.  
        


            The increases are due to higher per unit costs in the United
        States where fixed costs in the Gulf of Mexico are being allocated
        over a lower production base.  
        


            Total overhead costs, including amounts related to exploration
        and development activities, increased 70% to $5.6 million for the
        second quarter of 1996 and increased 44% to $10.2 million for the
        first six months of 1996 as compared to $3.3 million for the second
        quarter of 1995 and $7.1 million for the first six months of 1995.
        The increase is due to the addition of Canadian operations, which
        increased Forest's salaried workforce to 173 at June 30, 1996
        compared to 115 at December 31, 1995.  
        


            Interest expense of $6.4 million in the second quarter of 1996
        and $12.2 million in the first six months of 1996 was comparable to
        the amount recorded in the comparable 1995 periods.  Depreciation
        and depletion expense increased 27% to $14.1 million for the second
        quarter of 1996 and increased 15% to $27.0 million for the first six
        months of 1996 from the comparable periods of 1995.  
        


            On a per-unit basis, depletion expense was approximately $.93
        per mcfe in the second quarter of 1996 and $.94 per mcfe in the
        first six months of 1996 compared to $1.05 per mcfe for the second
        quarter of 1995 and $1.06 for the first six months of 1995.  The
        decrease in per unit depletion expense is the result of lower than
        average cost of reserves acquired in Canada.  
        


            Income tax expense increased to $1.2 million in the second
        quarter of 1996 and $3.3 million in the first six months of 1996
        from zero a year ago.  The increase is due to income tax expense
        resulting from Canadian operations.  Forest's U.S. operations remain
        in a non-taxable position.  
        


            Robert Boswell, President and Chief Executive Officer, stated
        "We are pleased to report increased production volumes resulting
        from our Canadian acquisitions.  With the addition of the recently
        announced production from the High Island 116 platform starting in
        August, Forest expects to maintain an upward production trend over
        the next several quarters as we bring additional discoveries on
        line.


            "Second quarter results were in line with expectations and
        should improve markedly in the coming quarters with increased
        production.  Our 1997 capital expenditure target has been set at $90
        million, approximately 50% higher than the 1996 budget.  We intend
        to invest this amount without increasing the Company's financial
        leverage.  In addition, we continue to pursue acquisitions in Canada
        to gain critical mass in the Western Sedimentary Basin."  
      

  
            "While year-to-date results are in line with expectations, we
        believe beginning in the third quarter our investors will see the
        positive results of our drilling success.  The early exercise of the
        Anschutz option is indicative of their view of the prospects for
        Forest Oil and provides Forest with the capital required to continue
        its successful drilling program."  
        


            This news release includes forward looking statements within the
        meaning of Section 27A of the Securities Act of 1933 and Section 21E
        of the Securities Exchange Act of 1934.  Although the company
        believes that its expectations are based on reasonable assumptions,
        it can give no assurance that its goals will be achieved.  
        


            Important factors that could cause actual results to differ
        materially from those in the forward looking statements herein
        include the timing and extent of changes in commodity prices for oil
        and gas, the need to develop and replace reserves, environmental
        risks, drilling and operating risks, risks related to exploration
        and development, uncertainties about the estimates of reserves,
        competition, government regulation and the ability of the company to
        meet its stated business goals.  
        


            Forest Oil Corporation is engaged in the acquisition,
        exploration, development, production and marketing of natural gas
        and crude oil in North America.  Forest's principal reserves and
        producing properties are located in the Gulf of Mexico, Texas,
        Oklahoma and Canada.  Forest's common and preferred stocks are
        traded on the Nasdaq National Market tier of the Nasdaq Stock Market
        under the FOIL and FOILO symbols, respectively.


        
                                FOREST OIL CORPORATION
                         Condensed Consolidated Balance Sheets

                                      (Unaudited)
                                           
                                                  Pro Forma
                                      June 30    December 31  December 31
                                        1996        1995         1995  
                                                (In Thousands)
        ASSETS
        Current assets:
          Cash and cash equivalents        $4,176        3,287       3,287
          Accounts receivable              44,104       35,763      17,395
          Other current assets              3,636        4,612       2,557
         
         
          Total current assets         51,916       43,662      23,239
         
        Net property and equipment,
          at cost                         418,278      429,584     277,599
         
        Investment in affiliate            11,307       11,301      11,301
         
        Goodwill and other intangible
         assets, net                       30,617       24,539           -
         
        Other assets                        8,716        8,904       8,904
         
                                     $520,834      517,990     321,043
        
        LIABILITIES AND SHAREHOLDERS' EQUITY
        Current liabilities:
          Cash overdraft                   $1,010        2,055       2,055
          Current portion of long-term debt 1,507        2,263       2,263
          Current portion of gas balancing
           liability                        2,730        4,700       4,700
          Accounts payable                 48,066       37,561      17,456
          Accrued interest                  5,233        4,219       4,029
          Other current liabilities         2,418        1,917       1,917
         
          Total current liabilities    60,964       52,715      32,420
         
        Long-term debt                    201,886      192,848     193,879
        Gas balancing liability             3,328        3,841       3,841
        Other liabilities                  24,366       25,824      23,298
        Deferred revenue                    9,985       15,137      15,137
        Deferred income taxes              33,124       38,502           -
         
        Minority interest                   8,644        8,882       8,171
         
        Shareholders' equity:
          Preferred stock                  24,345       24,359      24,359
          Common stock                      2,460        2,280       1,066
          Capital surplus                 372,659      366,431     241,241
          Common shares to be issued in
           debt restructuring                   -       6,073        6,073
          Accumulated deficit            (220,783)   (217,495)    (217,495)
          Foreign currency translation      (144)      (1,407)      (1,407)
          Treasury stock, at cost               -            -      (9,540)
         
          Total shareholders' equity  178,537      180,241      44,297
         
                                     $520,834      517,990     321,043
         
        
                             FOREST OIL CORPORATION
         Condensed Consolidated Statements of Production and Operations

                                   (Unaudited)
         
                                    Three Months Ended     Six Months Ended
                                     June 30, June 30,    June 30,  June 30,
                                       1996     1995        1996      1995
                        (In Thousands Except Production and Per Share Amounts)
        PRODUCTION
         Gas, including deliveries under
           volumetric
        production payments (mmcf)     10,202   8,640       19,444   17,937
        
        Oil, condensate and natural gas
           liquids (thousands of barrels)     610     302        1,233
        651
        
        STATEMENTS OF CONSOLIDATED OPERATIONS
         Revenue:
           Marketing and processing       $50,842       -       83,589
        -
           Oil and gas sales:
        Gas                            17,533  15,267       35,467   32,002
        Oil, condensate and natural
         gas liquids                   11,330   5,122       21,055   10,696
         
          Total oil and gas sales      28,863  20,389       56,522   42,698
         
         Miscellaneous, net                  (161)    161          303
        213
         
         Total revenue                 79,544  20,550      140,414   42,911
         
         Expenses:
        Marketing and processing       48,986       -       79,165       -
        Oil and gas production          8,369   5,888       15,856  11,197
        General and administrative      3,607   1,761        6,337   3,861
        Interest                        6,423   6,627       12,220  12,421
        Depreciation and depletion     14,051  11,089       26,989  23,398
         
         Total expenses                81,436  25,365      140,567  50,877
         
        Income (loss) before income taxes  (1,892) (4,815)        (153)
        (7,966)
         
        Income tax expense (expense)
          benefit                          (1,225)      -       (3,305)
        7
         
        Minority interest in loss of
         subsidiary                           216       -          171
        -
         
        Net loss                          $(2,901) (4,815)
        (3,287)(7,959)
        
        Weighted average number of common shares
          outstanding                      24,576   5,694       22,477
        5,670
        
        Net loss attributable to common
         stock                       $     (3,441) (5,355)
        (4,367)(9,039)
        
        Primary and fully diluted loss per
          common share               $       (.14)   (.94)        (.19)
        (1.59)
        
         
                                FOREST OIL CORPORATION
                       Selected Production and Price Information

        
                                                   Three Months Ended
                                              June 30,              June 30,
                                                1996                  1995
                                   United States Canada    Total  United States
          Natural Gas
           Total production (MMCF)         6,667      3,535    10,202
        8,640
           Sales price received (per MCF) $ 2.18       1.22      1.85
        1.67
           Effects of energy swaps (per MCF)(.17)      (.05)     (.13)
        .10
         
           Average sales price (per MCF) $  2.01       1.17      1.72
        1.77
         
          Liquids
           Total production (MBBLS)          228        382       610
        302
           Sales price received (per BBL) $18.22      21.91     20.54
        17.48
           Effects of energy swaps
        (per BBL)                      (1.85)     (2.25)    (2.10)     (.85)
         
           Average sales price (per BBL)$  16.37      19.66     18.44
        16.63
         
                                                  Six Months Ended
                                               June 30,              June 30,
                                                 1996                  1995
         
                                 United States   Canada    Total  United States
          Natural Gas
           Total production (MMCF)        13,092      6,352    19,444
        17,937
           Sales price received
        (per MCF)                 $     2.27       1.43      1.99      1.63
           Effects of energy swaps
        (per MCF)                       (.24)      (.03)     (.17)      .15
           Average sales price (per MCF)$   2.03       1.40      1.82
        1.78
         
          Liquids
           Total production (MBBLS)          481        752     1,233
        651
           Sales price received (per BBL)$ 17.36      19.02     18.37
        16.79
           Effects of energy swaps
        (per BBL)                      (1.46)     (1.30)    (1.36)     (.61)
         
           Average sales price (per BBL) $ 15.90      17.72     17.01
        16.18


        CONTACT:  Forest Oil Corp., Denver
                  Zack Hager, 303/812-1610


Finger/Matrix announces first product test ties



            TARRYTOWN, N.Y.  --  Aug. 7, 1996  --  Finger/Matrix
        Inc.
(NASDAQ EBB:FINX), the electronic fingerprinting pioneer that
        came out of Chapter 11 bankruptcy last year under new management
        announced here Wednesday, establishment of product test
        relationships with EDS, in El Monte, Calif., and IBM in Great
        Britain.  
        


            Thomas T. Harding, president and CEO, told stockholders at their
        first annual meeting in four years that last month's introduction of
        the company's two major electronic fingerprinting systems already
        has produced these initial results.  
        


            Both companies will soon receive Finger/Matrix Chek/One access
        control systems for extensive testing, Harding said.  
        


            Harding also reported the company's first distribution contract,
        agreed in principle, with Engineered Security Systems Inc., of
        Whippany, N.J.  Under the agreement, ESS Inc. will market Chek/One
        systems to commercial and industrial security system customers
        throughout the New York - New Jersey - Connecticut area.  
        


            Such access control systems verify the identity of individuals
        in less than two seconds by electronically matching one fingerprint
        against a computer file.  They will be applied increasingly to
        controlling access to data networks, physical areas, and to assuring
        the identity of employees, bank depositors and store customers,
        Harding said.  
        


            Shareholders were escorted to the company's Dobbs Ferry
        headquarters after the meeting for demonstrations of its second
        major access system, the Chek/Ten, which scans all 10 fingers,
        digitizes the fingerprint images and stores them in a computer.
        This large system is intended for use in the law enforcement
        community and will soon undergo certification tests for the FBI.  
        


            In their official actions, the shareholders approved stock
        option plans for both employees and directors, and returned all
        current members to the board of directors.  They are:
        


        Thomas T. Harding, President & CEO Gordon R. Molesworth, Secretary
        Seth M. Lukash, Chairman & CEO, Tridex Corp. Lewis S. Schiller,
        Chairman & CEO, Consolidated Technologies Inc. Fred I. Sonnenfeld,
        General Counsel & Partner, Sonnenfeld & Richman.
        


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



Holly Products announces year end results


        


            BALA CYNWYD, Pa.  --  Aug.  7, 1996  --  Holly Products
        Inc. (NASDAQ:HOPR,HOPRW,HOPRP; BSE:HOP,HOPP) today announced results
        of its year ended March 31, 1996.  
        


            As previously stated in the December 1995 10Q, the company
        experienced a substantial loss for the year attributable primarily
        to its woodworking business, HollyWood Manufacturing Inc. and cost
        of ceasing operations thereof.
        


            Additionally, the company experienced one time costs and a loss
        due to the reorganization and move of its wholly owned subsidiary,
        Navtech Industries Inc. to substantially larger quarters on the
        Navajo Reservation in Shiprock, N.M.  Preliminary results for the
        April through June 1996 quarter show a substantial turn-around and a
        return to profitability for this subsidiary.
        


            Lastly, the company experienced substantial legal expenses, loan
        fees and costs associated with its majority owned subsidiary,
        Country World Casinos Inc. to support and defend its right to
        maintain control of its main asset and to satisfy a court order in
        conjunction with Country World bankruptcy proceeding.  We anticipate
        its emergence from Chapter 11 in short order.
        


            William H. Patrowicz, president of Holly Products Inc., said,
        "On July 21, 1995, we committed to divest ourselves of HollyWood
        Manufacturing Inc. and reduce the associated losses.  This was
        accomplished during 1995.  The company then proceeded to reorganize
        and move Navtech to substantially larger quarters, equip Navtech
        with modern equipment and expand their customer base such that
        Navtech can realize their true potential.  Accordingly, preliminary
        first quarter results are showing a significant turnaround.  Country
        World, after much difficulty this past year, will shortly emerge
        from Chapter 11 and allow the company and its shareholders to
        realize the true potential.  After significant effort and expenses
        this past year, Holly is positioned solidly for the future."
        


            Holly Products Inc., headquartered in Bala Cynwyd, has a wholly
        owned subsidiary, Navtech Industries Inc. of Blanding, Utah and a
        majority owned subsidiary, Country World Casinos Inc. of Denver.
        Navtech is a manufacturer and tester of electronic components for
        casino equipment, hotel equipment and signage.  Country World
        Casinos Inc. is a development corporation, whose plan is to
        construct a casino in Black Hawk, Colo., as well as a hotel complex.




                    Holly Products Inc. and Subsidiaries
                 Consolidated Balance Sheet as of March 31, 1996

        
        Assets:
        Current assets:
        Cash and cash equivalents                $934,462
        Accounts receivable trade - (net of
         allowance for doubtful accounts  
         of $157,893)                             378,450
        Inventory                                 915,512
        Prepaid expenses                          446,980
        Other current assets                        4,534
        Total current assets                    2,679,938
        
        Property and equipment - (net of
         accumulated depreciation and
         amortization of $152,851)              9,687,312
        
        Deposits                                  246,462
        Investments                               363,355
        Intangible assets - net                   685,137
        Other assets                              246,157
        Total assets                          $13,908,361
        

        Liabilities and Stockholders' Equity:
        Current Liabilities:                                
          Notes Payable - Related Party                $ 3,896,504
          Demand Notes Payable - Bank                      858,353
          Notes Payable - Others                           680,396
          Accounts Payable                               1,535,888
          Accrued Expenses                               1,400,833
          Payroll Taxes Payable                             81,823
          Current Portion of Long-Term Debt                 58,748
          Current Portion of Capital Lease Obligations      61,237
          Other Current Liabilities                         14,182
          Net Liabilities of Discontinued Operations       575,007
        
          Total Current Liabilities                      9,162,971
        
        Long-Term Debt                                      61,765
        
        Long-Term Portion of Capital Lease Obligations     165,081
        
        Minority Interest                                2,217,191
        
        Commitments and Contingencies                        --
        
        Stockholders' Equity:
          Preferred Stock - Authorized 2,000,000 Shares:
        
          Series D: Convertible $10.00 Par Value,
           $1.00 Per Share Per Annum Cumulative Dividends,
           389,975 Shares Issued and Outstanding         3,899,750
        
          Series E: Convertible $10.00 Par Value 587,000
           Shares Issued and Outstanding                 5,870,000
        
          Additional Paid-in Capital (Preferred)        (1,939,548)
        
          Common Stock - No Par Value, Authorized
           20,000,000 Shares, 10,350,460 Shares Issued
        and Outstanding                             10,214,387
        
          Additional Paid-in Capital (Common)              (83,947)
        
          Accumulated (Deficit)                        (15,659,289)
        
          Total Stockholders' Equity                     2,301,353
        
          Total Liabilities and Stockholders' Equity   $13,908,361


                  Holly Products Inc. and Subsidiaries
                 Consolidated Statements of Operations

        
                                               
                                                    Years ended
                                                      March 31,
                                                 1996         1995
                                
        Net Sales                                $ 4,110,443  $ 5,279,766
        
        Cost of Sales                              4,805,819    4,013,435
        
        Inventory Reserve                            338,000        ---
        
          Total Cost of Sales                      5,143,819    4,013,435
        
          Gross Profit (Loss)                     (1,033,376)   1,266,331
        
        Operating Expenses:
          General, Selling, and Administrative     4,779,264    1,362,308
          Bad Debt Expense                           434,496        8,881
        
          Total Operating Expenses                 5,213,760    1,371,189
        
          Operating (Loss)                        (6,247,136)    (104,858)
        
        Other (Expense):
         Other Expenses                              (24,469)      (8,264)
         Interest Expense                           (468,483)    (265,272)  
        
        Other (Expense) - Net                       (492,952)    (273,536)
        
        Equity in Earnings of Unconsolidated
         Affiliate                                    85,355         --
        
        Minority Interest Share in Loss of
         Subsidiary                                  143,101         --
        
        (Loss) Income from Continuing Operations  (6,511,632)    (378,394)
        
        Discontinued Operations:
        (Loss) from Operations of Woodworking
         Business                                 (2,196,078)  (2,276,863)
        
        Estimated (Loss) on Disposal of Woodworking
         Business Including Provision of $666,224
          for Operating Losses During the Phase Out
           Period                                 (2,709,280)        --
        
        Net (Loss)                               (11,416,990)  (2,655,257)
        
        Preferred Stock Dividends                    402,500      219,250
        
         Net (Loss) Available to Common
          Stockholders                          $(11,819,490)  (2,874,507)
        
        Loss Per Common Share:
         (Loss) from Continuing Operations      $       (.97)  $     (.14)
         (Loss) from Discontinued Operations    $       (.33)  $     (.86)
         Estimated (Loss) on Disposal of
          Woodworking Business                  $       (.40)  $       --
        
         Net Income (Loss) Per Common Share     $      (1.75)  $    (1.08)
         
         Weighted Average Number of Common
          Shares Outstanding                        6,739,161   2,649,874
        

        CONTACT:  Holly Products Inc., Bala Cynwyd
                  William H. Patrowicz, 610/617-0400
                             or
                  Martin E. Janis & Co., Chicago
                  Elliot Jacobson, 312/943-1100



Fleming Companies, Inc. and Megafoods Stores, Inc. Joint Statement


        


            OKLAHOMA CITY, Aug. 7, 1996  --  On August 17, 1994,
        Megafoods Stores, Inc., Handy Andy, Inc., Megafoods Real Estate,
        Inc. and Texas National Food Stores Leasing Company ("Debtors")
        filed for Chapter 11 bankruptcy protection in the United States
        Bankruptcy Court for the District of Arizona.
        


            In October, 1995, Debtors filed a complaint against Fleming
        Companies, Inc. (NYSE: FLM).  The trial was scheduled to begin on
        August 12, 1996.  On June 11, 1996, the Court approved the
        disclosure statement for the Debtors' Joint Plan of Reorganization
        (the "Joint Plan"), which has been sent out to creditors.
        


            On August 6, 1996, the parties entered into a written Settlement
        Agreement to amicably and reasonably resolve fully the parties'
        disputes.  Both parties believe that the terms of the Settlement
        Agreement are in their respective best interests and will avoid
        further litigation.
        


            The parties intend to present the Settlement Agreement to the
        Court for approval on Monday, August 12, 1996, in lieu of proceeding
        with trial.  The Settlement Agreement explicitly contemplates that
        its terms shall be incorporated into the Debtors' Joint Plan and
        that anything currently in the Debtors' proposed Joint Plan that is
        inconsistent with the parties' Settlement Agreement will be deleted.
        Fleming will support the Debtors' efforts to reorganize consistent
        with the terms of the parties' Settlement Agreement.
        


CONTACT: Shane Boyd of Fleming Cos., 405-858-5956



PBGC Urges Smith Corona to Keep Pensions Ongoing


        


            WASHINGTON, Aug. 7, 1996  --  The Pension Benefit Guaranty
        Corporation (PBGC) said today that it is prepared to review Smith
        Corona Corporation's
request to terminate its pension plans but
        urged the company to continue pursuing avenues that would result in
        continuation of the underfunded pension plans that cover about 4,600
        workers and retirees.
        


            "PBGC encourages solutions that keep plans ongoing since this
        minimizes losses to workers as well as the insurance program," said
        PBGC Executive Director Martin Slate.
        


            Smith Corona, which hopes to emerge from bankruptcy in October,
        has also informed PBGC that it intends to file a motion with the U.S
        Bankruptcy Court in Wilmington, Delaware, requesting approval to
        terminate both its salaried and hourly pension plans.
        


            Under pension law, a company in financial distress may terminate
        its pension plan only if the plan sponsor as well as each of its
        corporate affiliates has satisfied a financial distress test.  If
        the pension plans are terminated, PBGC would be the largest creditor
        in the bankruptcy court, with claims for the pension underfunding of
        nearly $30 million, and would pursue its claims vigorously.
        


            The manufacturer of personal word processors and electric
        typewriters has been seeking a solution to its financial problems
        since it filed for Chapter 11 bankruptcy in July, 1995.
        


            In the event of termination, PBGC would take over the pension
        plans and pay benefits up to the legal limit, which for plans
        terminating in 1996 is $2,642.05 per month.  The 3,000 workers who
        have participated in the hourly plan for at least five years would
        probably see no reduction in their benefits.  However, some of the
        1,500 workers in the salaried plan would exceed the guarantee limit
        and experience reductions in their benefits.
        


            PBGC is a federal corporation created under the Employee
        Retirement Income Security Act of 1974 to guarantee payment of basic
        pension benefits earned by nearly 42 million American workers and
        retirees participating in about 55,000 private-sector defined
        benefit pension plans.  The agency receives no funds from general
        tax revenues.  Operations are financed largely by insurance premiums
        paid by companies that sponsor pension plans and by investment
        returns.
        


CONTACT: Judith Welles, director communications & public affairs, or Andy Gasparich, public affairs officer, of the Pension Benefit Guaranty Company, 202-326-4040