NEW ORLEANS, LA -- Aug. 26, 1996 -- Entergy Corporation (NYSE:
ETR) announced that U.S. District Court Judge Frank J. Polozola
today in Baton Rouge, Louisiana, approved the terms of a settlement
agreement among Entergy Gulf States, the trustee in the Cajun
Electric Power Cooperative bankruptcy, and representatives of the
Rural Utilities Service (RUS).
The settlement gives the RUS several options for disposing of
Cajun's 30 percent ownership of the River Bend nuclear unit. It
also commits Cajun to fund its full share of the estimated
decommissioning obligation for River Bend by setting aside the sum
of $125 million in a decommissioning trust fund, regardless of the
option the RUS chooses.
Under the options provided in the settlement, RUS may seek a
buyer of Cajun's 30 percent interest in River Bend, take title to
Cajun's interest in its own name, or forego both of these options
and relinquish Cajun's interest at no cost to Entergy Gulf States,
which owns the other 70 percent. Under all of these options, Cajun
will be released from its unpaid past, present, and future liability
for River Bend costs and expenses.
Another provision of the settlement allows Entergy Gulf States
to recover all funds previously paid by it into the registry of the
court. These funds have been accumulating from payments made by
Entergy Gulf States, under a preliminary injunction entered by the
court, for its share of operations and maintenance expenses
associated with its 42 percent share of the Big Cajun 2, Unit 3,
coal-fired generating facilities, of which Cajun is the majority
owner and operator.
Other provisions of the settlement involve the mutual release
and forgiveness of several hundred million dollars of claims among
the parties. All litigation between Cajun and Entergy Gulf States
will be dismissed and released, and a small portion of Cajun's
transmission assets will be transferred to Entergy Gulf States.
Entergy Gulf States will also release its claims against the RUS.
The settlement agreement approved today was announced on April
29 by Trustee Ralph R. Mabey, who submitted it to Judge Polozola.
Entergy Corporation's on-line address is " target=_new>http://www.entergy.com">http://www.entergy.com.
CONTACT: Joe Holwager, news media, 504-576-4235; E-mail:
jholwagentergy.com; or Stuart Ball, investor relations, 504-576-
4817, or E-mail: sballentergy.com, both of Entergy Corporation
KIRKLAND, Wash. -- Aug. 26, 1996 -- Lamonts
Apparel, Inc., which operates 42 family apparel stores in six
northwestern states, announced today that it has filed a consensual
Plan of Reorganization and Disclosure Statement with the Bankruptcy
Court in Seattle, Wash. These documents set forth the details of
the company's plan for satisfying creditor claims and for future
business operations. A Court hearing to approve the Disclosure
Statement is scheduled for October 24, 1996.
According to Alan Schlesinger, chairman and chief executive
officer of Lamonts, "in the 19 months since the commencement of
Chapter 11, the company has made major changes in its business,
including implementation of a highly focused and effective
merchandising strategy, creation of an entirely new senior
merchandising team, closing of nine unprofitable stores, opening of
one new store, streamlining of our corporate headquarters staff and
facilities and cutting operating costs by more than $10.0 million.
In addition, the company has established a new financing arrangement
with The First National Bank of Boston which provides the working
capital to support its operations.
"These and other improvements in our business have positioned
Lamonts to emerge from Chapter 11 and to operate successfully in the
future. Our Spring season operating results reflect these
improvements with a like store sales increase of 5.6 percent and a
gross margin improvement of 1.75 percent of sales compared with the
same period last year."
Mr. Schlesinger further stated that "we are especially pleased
that the Plan of Reorganization filed today is supported by the
official committees representing the company's trade creditors,
bondholders, and shareholders. These constituents and Lamonts'
management agree that the Plan offers the highest possible
recoveries to all classes and should be approved."
The Plan provides that secured claims will be paid in full.
Unsecured claims (including those of the company's bondholders),
estimated to total approximately $90 million, will be satisfied by
the issuance of new common stock of the reorganized company and
warrants to purchase additional stock in certain circumstances.
Specifically, the Plan contemplates an initial distribution of 9
million shares of new common stock of which between 4.05 million and
5.67 million shares will be allocated to the company's trade
creditors (depending on the final determination of the allowed
amount of these claims); between 4.75 million and 3.13 million
shares will be allocated to bondholders and other unsecured non-
trade creditors (depending on the final determination of the allowed
trade creditor claims); and 200,000 will be allocated to the
company's existing shareholders in exchange for all existing stock
of the company.
The company's bondholders and other unsecured non-trade
creditors will receive warrants entitling them to approximately 2.2
million shares when the company's market capitalization reaches $20
million. Bondholders, other unsecured non-trade creditors, and
existing shareholders will receive warrants entitling them to
approximately 800,000 shares when the company's market
capitalization reaches $25 million. Management will receive options
to purchase 10 percent of the company's outstanding common stock
(with protection against dilution) at an option exercise price of $1
Founded in 1967, Lamonts Apparel, Inc. is headquartered in the
greater Seattle area. The company employs approximately 1,600
employees at its new corporate headquarters in Kirkland and at 42
stores located in Alaska, Idaho, Montana, Oregon, Utah, and
Washington. Lamonts filed under Chapter 11 on January 6, 1995.
CONTACT: Rivian Bell at Sitrick And Company, Inc. - 310/788-2850 (24 hours) or 800/686-1910 (pager)
BOISE, Idaho -- Aug. 26, 1996 -- href="chap11.mk.html">Morrison Knudsen
Corporation (NYSE: MRN) announced today that the company's plan of
reorganization was approved by Judge Peter Walsh of the U.S.
Bankruptcy Court, District of Delaware. The plan calls for the
merger of Morrison Knudsen and Washington Construction Group, Inc.
(NYSE: WAS) and an exchange of MK's approximately $360 million in
secured debt and contingent liabilities for new equity in the
company and other assets. The plan received the unanimous approval
of MK's secured creditors and was supported by 90% of the
shareholders who responded to the solicitation.
The company also announced that it has reached agreement with
Bank of Montreal, as agent, for a $200 million credit facility with
a five year term. MK has also reached agreement on a bonding
arrangement with a surety syndicate led by Federal Insurance
Company, The St. Paul Surety and American Home Insurance Group (AIG)
which provides complete bonding support to meet MK's business
After the merger, Morrison Knudsen will be essentially debt
free, with bonding capacity as required, a net worth of more than
$300 million and an established $200 million line of credit. MK's
core engineering & construction, heavy civil construction,
environmental and mining groups will have revenue approaching $2
billion annually and a backlog of $4 billion. The combined company
has 10,000 employees at work throughout the United States and in 25
countries. The merger will be effective on September 11, 1996.
"The MK-Washington merger combines the strength of two great
companies. Washington Construction's financial strength, bonding
capacity and operating expertise in heavy construction and contract
mining are a perfect fit with Morrison Knudsen's Heavy Construction
and Mining Groups, and complements MK's design, engineering and
construction capabilities in the industrial process, power and
environmental markets," said Robert A. Tinstman, MK's President and
Chief Executive Officer. "We emerge as a company with operational
focus, financial strength and proven management. All of our clients
- 100% of them - stayed with MK during our recent challenges and our
10,000 employees have consistently rewarded that loyalty by
providing the best engineering and construction expertise in the
Board of Directors
Following the merger of the two companies, Dennis R. Washington
will serve as Chairman of the Board and Robert A. Tinstman will
serve as President and Chief Executive Officer. The newly merged
company will be named Morrison Knudsen Corporation and be
headquartered in Boise, Idaho. The companies also announced that
Robert S. Miller and Dorn Parkinson have each been designated to
serve as Vice Chairman of the Board.
Washington, 61, is a 45-year veteran of the construction
industry and founded Washington Construction Company in 1964. He is
founder and owner of Washington Corporations of Missoula, Montana, a
holding company with interests in construction, marine and rail
transportation, mining, and environmental remediation. He is a
member of the American Academy of Achievement, Horatio Alger
Association and is Past President of the Montana Contractors
Tinstman, President and Chief Executive Officer of Morrison
Knudsen Corporation since 1995, will continue to serve in that
capacity and as a Director of the company. He previously served as
President of MK's Mining Group and earlier as President of Morrison
Knudsen Engineers, Inc. Tinstman, who also headed MK's
environmental operations and has more than 27 years of engineering
and construction experience, is a 21-year MK veteran.
In addition to his duties as Vice Chairman, Robert S. Miller
will also serve as Chairman of the Executive Committee. Miller,
who has served as MK Chairman since April 1995, oversaw MK's
financial restructuring and previously served as the architect and
principal negotiator of the Chrysler turnaround in the 1980's.
Formerly Vice Chairman of Chrysler Corporation, he served as that
company's Chief Financial Officer from 1981-1990.
"Steve's leadership and credibility in dealing with MK's
creditors were essential in forging and implementing a restructuring
strategy," said Tinstman. "He kept his eye on the ball and guided
MK through the most challenging times in the 84-year history of our
company. We are deeply grateful for his service and look forward to
working with him as MK emerges even stronger than before."
Dorn Parkinson, currently Chairman of the Board of Washington
Construction Group, Inc. and Washington Corporations, will serve as
Vice Chairman of Morrison Knudsen Corporation following the merger.
Parkinson has been the President of Washington Corporations since
1986 and previously served as President and Chief Operating Officer
of Washington Construction Group, Inc., formerly named Kasler
Terry W. Payne, has been Chairman of Terry Payne & Co., Inc., an
insurance and construction bonding agency, since 1994 and owner
since 1972. He has served as a Director of Washington Corporations
and several other affiliates since 1984.
Leonard R. Judd has served as a Director of Washington
Construction since 1993 and of Washington Contractors from 1992-
1993. From 1989-1991, he served as Director, President and Chief
Operating Officer of Phelps Dodge Corporation, a major copper mining
and manufacturing corporation and previously, as President of Phelps
Dodge Mining Company.
David H. Batchelder has been the President, Secretary and
Director of Batchelder & Partners, an investment advisory and
consulting firm, and Batchelder Company, an investor in acquisition
partnerships, since 1988. He has been a Director of Washington
Construction since 1993.
John D.C. Roach, Chairman, President and Chief Executive Officer
of Fibreboard Corporation since 1991, formerly served as President
of Manville Corporations Mining and Minerals Group and earlier as
Vice Chairman and Managing Director of Braxton Associates.
William C. Langley served with Chemical Banking Corporation from
1964-1996, most recently as Executive Vice President, Chief Credit
and Risk Policy Officer and previously as Executive Vice President
and Vice Chairman of Chemical's Credit Policy Committee.
Stephen G. Hanks, a 17-year MK veteran, has been designated to
serve as Executive Vice President, Chief Legal Officer and
Secretary. He earlier served as Executive Vice President
- Administration and Finance, Senior Vice President and Secretary.
Denis M. Slavich, will serve as Executive Vice President and
Chief Financial Officer. Formerly Vice President - Marketing of
Fluor Daniel, Inc., Slavich previously held senior management
positions with Bechtel Group, Inc. for more than 20 years, including
corporate Director, Chief Financial Officer and Senior Vice
Group Operations Management
Thomas H. Zarges will serve as Senior Vice President of Morrison
Knudsen and President of MK's Engineering and Construction Group.
Zarges joined MK in 1991 from United Engineers and Constructors
where he had served as Vice President of Business Development.
Darrol N. Groven, Executive Vice President of Washington
Construction and formerly President of Kasler, a wholly owned
subsidiary of Washington Construction Group, Inc. will serve as
Senior Vice President of Morrison Knudsen and President of MK's
Heavy Civil Construction Group.
Stephen Allred, a 15-year MK veteran who has overseen MK's
environmental operations since 1991, will remain President of MK's
Environmental Group. Allred is former Director of the State of
Idaho's Department of Water Resources, Chairman of the U.S. Water
Resources Council and has 28 years experience in the environmental
Steven Chi will serve as President of MK's Mining Group. Chi
has 30 years of experience in the mining industry and previously
served as Vice President - Marketing and New Ventures for the
Mining Group. He is a 17-year veteran of MK.
"This Board and management team reflect the strength the merged
company will have in the engineering and construction industry,"
said Robert A. Tinstman. "Dennis Washington's decision to serve as
Chairman of the company underscores his commitment to MK and our
clients. His construction experience and reputation for building
strong, competitive companies will prove invaluable as MK moves
Under the approved plan, MK's secured creditors will receive
$13.3 million in cash, approximately 24.1 million shares of common
stock of the newly merged company and certain non-core assets,
including MK's 11.1 million shares of MK Rail Corporation common
stock (Nasdaq: MKRL), $34.5 million in cash proceeds from the sale
of a note receivable from MK Rail and preferred stock of reorganized
MK of $18 million. Further, Washington Construction will assume
MK's debtor-in-possession loan, not to exceed $50 million.
The existing shareholders of Morrison Knudsen will receive a
warrant package that entitles them to purchase 2,765,000 shares of
common stock, or approximately 5% of the common stock of the newly
merged company, at $12.00 per share for a term of 6+ years. The
plan, which was amended to enhance recovery for MK shareholders,
also allows shareholders to purchase, through primary and
oversubscription rights, the assets which would otherwise be
exchanged for approximately 50% of MK's secured debt for the par
value of the debt.
Washington Construction Group, Inc., based in Highland,
California, brings to the merger operations in infrastructure,
contract mining, environmental remediation, commercial construction
and construction material markets serving both government and
private customers in the western United States.
Morrison Knudsen Corporation, founded in 1912, serves the
world's environmental, industrial process, mining, operations &
maintenance, power, transportation and heavy construction markets as
an engineer and contractor.
CONTACT: Brent Brandon, Vice President of Corporate Communications of
Morrison Knudsen, 208-386-6612
MINNEAPOLIS, MN -- Aug. 26, 1996 -- The Official Unsecured
Creditors' Committee (the "Creditors' Committee") of I.C.H.
Corporation ("ICH") has filed a chapter 11 plan of reorganization
today calling for the orderly liquidation of all of the remaining
assets of ICH. The Plan filed by the Creditors' Committee proposes
to create a liquidating trust which will liquidate the balance of
ICH's non-cash assets and make distributions to ICH's creditors and,
only if creditors are paid in full together with post-petition
interest, equity security holders. Pursuant to a scheduling order
that has been entered by the Bankruptcy Court, a disclosure
statement relative to the Creditors' Committee's Plan is not due
until September 24, 1996.
Despite the filing of the Plan, the Co-Chairmen of the
Creditors' Committee, John Tobin and Jeff Schultz, expressed their
hope that continuing discussions with the Equity Committee, ICH and
representatives of the Shaw Group would result in a consensual plan.
Mr. Tobin, a representative of BEA Associates, one of the largest
bondholders of ICH, commented: "While we are working diligently to
explore alternatives for a consensual plan, the filing today of the
Creditors' Committee's Plan signifies our willingness to pursue a
contested plan, if a reasonable agreement cannot be reached, and our
commitment to press for rapid distributions to the creditors of
CONTACT: Jeffrey I. Werbalowsky or P. Eric Siegert of Houlihan Lokey
Howard & Zukin, Advisors for the Official Unsecured Creditors'
Committee of I.C.H. Corporation, 612-338-2910; Michael A. Rosenthal, Esq., or I.
Richard Levy, Esq. of Gibson, Dunn & Crutcher, Attorneys for the Official
Unsecured Creditors' Committee of I.C.H. Corporation, 214-698-3100; or John M.
Tobin of BEA Associates, Co-Chairman of the Official Unsecured Creditors'
Committee of I.C.H. Corporation, 212-326-5418