TCR_Public/960910.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


September 10, 1996



  1. Samsonite Corporation Reports On Earnings
  2. MK Rail Repays Morrison Knudsen Note At Discount
  3. FoxMeyer Health Corporation sells its position in FoxMeyer Canada, Inc.





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Samsonite Corporation Reports Adjusted Operating Income Increased 11.8 Percent On A Sales Increase Of 7.0 Percent During The Second Quarter


        


            DENVER, CO  --  Sept. 10, 1996  --  Samsonite Corporation (Nasdaq:
        SAMC) today announced that results for the three months ended July
        31, 1996 reflect an 11.8% increase in adjusted operating income on a
        7.0% increase in net sales.
        


            Operating earnings, adjusted to exclude $2.6 million in
        separation expenses associated with the departure of the Company's
        former Chief Executive Officer and prior to the effects of
        amortization of reorganization value in excess of identifiable
        assets ("Reorganization Amortization"), increased 11.8% to
        $11,078,000 during the second quarter of the current year versus
        $9,907,000 during the same quarter of the prior year.  Net sales for
        the three months ended July 31, 1996 increased 7.0% to $179,440,000
        versus $167,670,000 in the same period during the prior year.
        


            Earnings before minority interest, interest expense, taxes,
        depreciation and amortization, separation expenses associated with
        the CEO departure, and other income ("Adjusted EBITDA"), a measure
        of core business cash flow, for the three months ended July 31, 1996
        was $18,787,000 compared to $17,425,000 for the same period in the
        prior year, an increase of 7.8%.  For the three months ended July
        31, 1996 the Company reported a net loss of $6,183,000 or $.39 per
        share which improved from a net loss of $17,491,000 or $1.10 per
        share during the second quarter of the prior year.  Excluding the
        effects of Reorganization Amortization and the extraordinary item
        during the prior year, the Company's net income would have been
        $2,996,000 or $.18 per share and $4,502,000 or $.28 per share for
        the three months ended July 31, 1996 and 1995, respectively.  This
        decrease results primarily from higher nonrecurring other income in
        the previous year.
        


            Chief Financial Officer Tom Sandler stated, "Looking to the
        future, we are embarking on a comprehensive corporate strategy that
        we believe will accelerate financial performance.  This program will
        enable us to continue to achieve strong top line growth driven by
        new product introductions with progressively stronger margins.
        Margin improvements will be driven by increases in product pricing,
        which we already announced effective October 1st, and cost structure
        reductions, which began impacting the Company's business in August."
        


            For the six month period ended July 31, 1996 net sales increased
        7.3% to $349,307,000 from $325,423,000 for the same period in 1995.
        Most recent six month operating income, adjusted to exclude
        separation expenses associated with the departure of the Company's
        former Chief Executive Officer and prior to the effects of
        Reorganization Amortization, was $24,108,000 compared to $21,234,000
        for the same period in the previous year, an increase of 13.5%.
        Adjusted EBITDA for the six months ended July 31, 1996 improved to
        $39,217,000 compared to $36,062,000 for the same period in the prior
        year, an increase of 8.7%.  For the six months ended July 31, 1996,
        the Company reported a net loss of $16,985,000 or $1.07 per share,
        which improved from $30,848,000 or $1.97 per share for the same
        period in the prior year.  The net loss during the second quarter of
        the prior year includes an extraordinary item charge of $8,042,000
        or $.52 per share for the early extinguishment of debt.
        


            Excluding the effects of Reorganization Amortization and the
        extraordinary item in the prior year, the Company's net income for
        the six months ended July 31, 1996 and 1995 would have been
        $5,962,000 or $.37 per share and $4,730,000 or $.30 per share,
        respectively.
        


            Chief Executive Officer Richard Nicolosi stated, "I am convinced
        that we are on track to an increasingly successful future for
        Samsonite."  He added, "From a growth in sales standpoint, all three
        of our brands are now introducing an innovative and highly consumer-
        preferred upright product called EZ CART(TM), which incorporates a
        four wheel transport system that is more maneuverable and more
        stable than traditional upright luggage products and shifts the
        weight load of luggage from the consumer to the ground.  Customer
        acceptance of EZ CART(TM) has been excellent and its introduction
        will be supported by television and co-op trade advertising during
        the peak Christmas season.
        


            "From a product pricing standpoint, by October 1996 we will have
        completed implementation of increased pricing on a global basis.
        


            "As to our cost structure, we are implementing some cost and
        balance sheet improvements which will begin impacting performance
        throughout the balance of the year.  While we have not yet completed
        an assessment of the full magnitude of our cost restructuring
        activities, this too will certainly be completed by the end of the
        year.  Net, we believe we will quickly accelerate Samsonite's
        financial performance."
        


            Samsonite is a leading manufacturer and distributor of luggage
        and business cases, marketing the majority of its products under the
        Samsonite, American Tourister and Lark brand names.
        



                        Samsonite Corporation Earnings Summary
                                July 31, 1996 and 1995
                         (in thousands except per share data)
         
                                  Three months ended      Six months ended
                                        July 31               July 31
                                  1996          1995      1996        1995
         
        Net sales               $179,440      $167,670  $349,307    $325,423
        Cost of goods sold       110,748       103,503   211,950     197,291
        Gross profit              68,692        64,167   137,357     128,132
        Selling, general and
         administrative expenses  57,986        52,073   111,391     102,534
        Amortization of intangible
         assets                   11,407        16,138    27,405      31,900
        Operating loss              (701)       (4,044)   (1,439)     (6,302)
        Interest expense          (8,924)      (10,301)  (18,034)    (19,924)
        Other income, net          4,997         8,430     7,331       6,985
        Loss before income taxes
         and minority interest    (4,628)       (5,915)  (12,142)    (19,241)
        Income taxes              (1,403)       (3,474)   (4,400)     (3,368)
        Minority interest in
         earnings of subsidiaries   (152)          (60)     (443)       (197)
        Extraordinary item            --        (8,042)       --      (8,042)
        Net loss                 ($6,183)     ($17,491) ($16,985)   ($30,848)
         
        Net loss per share
        Loss before extraordinary
         item                     ($0.39)        (0.59)    (1.07)      (1.45)
        Extraordinary item            --         (0.51)       --       (0.52)
        Net loss                  ($0.39)       ($1.10)   ($1.07)     ($1.97)
        EPS (as adjusted ..)        $0.18         $0.28     $0.37       $0.30
         
        .. Excludes Reorganization Amortization and extraordinary item.


CONTACT:  Michael W. Kempner, e-mail: mkempnermww.com, or Robert E.
        Swadosh, e-mail: rswadoshmww.com, both of MWW-Strategic Communications, Inc.
        for Samosnite Corporation, 201-507-9500


MK Rail Completes Debt-Reduction Transaction By Repaying Morrison Knudsen Note At Discount


        


            PITTSBURGH,  PA  --  Sept. 10, 1996  --  MK Rail Corporation (Nasdaq:
        MKRL) today completed a debt-reduction transaction by repaying a
        note owed to Morrison Knudsen Corporation (NYSE: MRN) at a discount
        to face value.  In the transaction, MK Rail repaid $57.3 million of
        debt, including accrued interest, for $34.6 million.
        


            As a result of this debt repayment, non-core asset sales and MK
        Rail's improved cash flow from operations in 1996, the company will
        have reduced total debt from about $120 million at the beginning of
        the year to about $65 million by the end of the third quarter.
        During the same period, stockholders' equity will have increased
        from $94.5 million to about $115 million and book value per share of
        common stock will have increased from $5.38 to about $6.55.  In
        addition, through the note repayment the company expects to reduce
        annual interest expense by about $1 million.
        


            "This debt-reduction transaction represents the final step in
        the turnaround plan that we articulated at the beginning of this
        year," said John C. (Jack) Pope, the company's chairman.  "MK Rail
        is now profitable and has a very strong balance sheet which should
        enable us to invest in the future growth of our businesses."
        


            In conjunction with the Morrison Knudsen note repayment,
        Morrison Knudsen expects to emerge from bankruptcy and merge with
        Washington Construction Inc. (NYSE: WAS).  As part of its bankruptcy
        plan, Morrison Knudsen plans to distribute its 63 percent ownership
        of MK Rail stock, about 11.1 million shares, to its creditors and,
        in certain circumstances, its current stockholders.
        


            The stock distribution is expected to occur during the first
        week of October 1996, at which time Morrison Knudsen will no longer
        be an MK Rail stockholder.
        


            Also, Robert S. Miller Jr. will resign from the MK Rail Board of
        Directors, effective Sept. 11.  Miller had been the chairman of
        Morrison Knudsen and will be the vice chairman of Morrison Knudsen
        following its merger with Washington Construction.
        


            MK Rail is a leader in the manufacturing and distribution of
        engineered locomotive components; provides locomotive fleet
        maintenance and overhauls; and manufactures switcher locomotives.
        


CONTACT:  Tim Wesley of MK Rail, 412-237-2250, ext. 161



FoxMeyer Health Corporation sells its position in FoxMeyer Canada, Inc.


        


        DALLAS, TX  --  Sept. 10, 1996  --   FoxMeyer Health Corporation (NYSE:FOX) today announced that
        Gordon Capital has agreed to purchase 14.25 million special warrants
        from FoxMeyer Health Corporation at a purchase price of C$4.85 per
        special warrant. Each special warrant is convertible into one common
        share of FoxMeyer Canada, Inc. for no additional consideration. Of
        the common shares to be sold, 4.8 million will be acquired by
        FoxMeyer Health Corporation through the exercise of 4.8 million
        options for an aggregate consideration to FoxMeyer Canada of C$14.4
        million. The transaction, which is scheduled to close on September
        20, 1996, will result in the disposition of FoxMeyer Health
        Corporation's entire position in FoxMeyer Canada and will generate
        for FoxMeyer Health Corporation approximately US$38 million in cash,
        after expenses.   
        


            In addition, FoxMeyer Canada has agreed to acquire U.S.
        HealthData Interchange, Inc. ("USHDI"), a medical and hospital
        claims management subsidiary of FoxMeyer Health Corporation and part
        of the Company's remaining CareStream operations, for US$10 million
        and warrants to purchase 1,500,000 common shares of FoxMeyer Canada
        at price of C$4.85 per share. Of the US$10 million in proceeds, the
        Company expects to receive US$6 million in cash and a US$4 million,
        18-month secured note. The transaction, which is expected to close
        on September 20, 1996, is subject to FoxMeyer Canada's Board of
        Directors, regulatory and other approvals and is conditioned upon
        entering into a definitive agreement.   
        


            The Company said that consistent with the plans it has outlined
        for FoxMeyer Health's asset portfolio, the Company is capitalizing
        on several timely opportunities to monetize its holdings. As a
        result of the sale of its FoxMeyer Canada position and the
        disposition of USHDI, FoxMeyer Health Corporation expects to realize
        cash proceeds of approximately $44 million, as well as a sizable
        capital gain associated with these transactions. While the proceeds
        from these asset sales have yet to be earmarked for any specific
        purpose, the Company will continue to evaluate every alternative for
        recognizing the value of FoxMeyer Health's assets for shareholders.
        


            FoxMeyer Health Corporation is a leading provider of health care
        products and information-based services in North America.   
        


        CONTACT: Morgen-Walke Associates:
                 Betsy Brod/Alex Gleeson ;  
                 Media: Michelle Zawrotny
                 (212) 850-5600