TCR_Public/960826.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


August 26, 1996



  1. Final Approval Given To Settlement Agreement In Cajun Bankruptcy
  2. Lamonts Files Plan of Reorganization
  3. MK - Washington Construction Merger Approved
  4. Unsecured Creditors' Committee for I.C.H. Corp. Files a Chapter 11 Plan





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Final Approval Given To Settlement Agreement In Cajun Bankruptcy


        


            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



Lamonts Files Plan of Reorganization


        


            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
        million.  
        


            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)
        



MK - Washington
Construction Merger Approved


        


            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
        objectives.
        


            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
        world."
        


        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
        Association.
        


            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
        Holding Company.
        


            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.
        


        Executive Management


            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
        President.
        


        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
        field.
        


            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
        confidently forward."
        


            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



Official Unsecured Creditors' Committee for I.C.H. Corporation Files a Chapter 11 Plan
        


            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
        ICH."
        


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