InterNet Bankruptcy Library - News for October 8, 1996

Bankruptcy News For October 8, 1996

  1. Marvel 1996 Third Quarter Preliminary Results

  2. FoxMeyer Responds to Incorrect Reuters Report

  3. NationsBank, N.A. and private investor group file joint plan of reorganization for Pic 'N Pay Stores,

Marvel 1996 Third Quarter Preliminary Results

NEW YORK, NY - Oct. 8, 1996 - Marvel Entertainment Group, Inc. (NYSE: MRV) announced that it
expects to report a net loss for its third quarter ended September 30, 1996 of a range of ($0.07) to ($0.12)
per common share including a non-recurring pre-tax gain of approximately $22 million from the sale of
shares of Toy Biz, Inc. (NYSE: TBZ) in August 1996. For the third quarter of 1995, Marvel reported net
income of $0.19 per common share. The Company attributes the third quarter loss to continuing weakness
in its trading card, publishing and consumer products licensing businesses and expects the current market
conditions to also result in net losses for the fourth quarter and full year ending December 31, 1996.

As a result of the greater than expected operating losses, the Company has failed to satisfy certain
financial covenants contained in its bank credit facilities and has commenced discussions with its agent
bank seeking waivers of these covenants and a restructuring of the facilities to provide for its cash
requirements. The Company believes that such a restructuring will ultimately require an infusion of new
equity capital and has also begun discussions with certain affiliated entities to obtain the necessary funds
to meet its current and long term needs.

The Company said it expects to report its results for the third quarter in early November 1996.

Marvel Entertainment Group, Inc. is a leading youth entertainment company. Operations include
publishing of comic books, trading cards and activity stickers; marketing and distribution of toys; and
licensing of its characters for consumer products, media and advertising promotions.

Forward Looking Statements: Statements in this news release which are not historical are
forward-looking statements that involve risks and uncertainties. Such statements include, without
limitation, Marvel's expectations to financial performance for the remainder of 1996 and for 1997. In
addition to factors that may be described in the Company's Securities and Exchange Commission filings,
the following factors, among others, could cause the Company's financial performance to differ materially
from that expressed in any forward-looking statements made by, or on behalf of, the Company: (i) the
failure of fan interest in baseball to return to traditional levels prior to the 1994 baseball strike, thereby
negatively impacting the Company's baseball card business; (ii) continued weakness in the comic book
market which cannot be overcome by the Company's new editorial and production initiatives in comic
publishing; (iii) continued weakness in the trading card market; (iv) the effectiveness of the Company's
changes to its trading card and publishing distribution; (v) a decrease in the level of media exposure or
popularity of the Company's characters resulting in declining revenues based on such characters; (vi) the
lack of continued commercial success of properties owned by major licensors which have granted Marvel
licenses for its sports and entertainment trading cards and sticker businesses; (vii) unanticipated costs or
delays in completing projects associated with the Company's new ventures including media production,
interactive software and on-line services and theme restaurants; and (viii) the outcome of Marvel's
discussions with its lenders and the ability of Marvel to provide for its cash requirements.

SOURCE Marvel Entertainment Group, Inc. -0- 10/08/96 /CONTACT: Gary Fishman and David
Pasquale, Investor Relations for Marvel Entertainment Group, Inc., 212-685-6890/ (MRV TBZ)

FoxMeyer Responds to Incorrect Reuters Report

DALLAS, NY - Oct. 8, 1996 - FoxMeyer Drug Company today issued the following statement in response
to an inaccurate report by Reuters News Service.

In a report today, the Reuters News Service said that 'a federal bankruptcy judge approve an
agreement for the sale of FoxMeyer Health Corp's assets to McKesson Corp. and instead ordered the
assets to be auctioned...'

The report is incorrect:

- FoxMeyer Health Corp. is not a party to the action.

- The Court today issued an order approving auction procedure and establishing the date, time, and place
for a hearing on the approval of the sale of assets of FoxMeyer Drug Company and its affiliated

-- The Court was not asked today to rule, nor did it rule, on the sale of the company's assets. The hearing
to consider the sale of the assets to McKesson or to a higher bidder is scheduled for November 8, 1996.
Prior to the hearing, the company will conduct an auction under the Bankruptcy Code.

SOURCE FoxMeyer Drug Co. -0- 10/08/96 /CONTACT: Sandra Sternberg or Ann Julsen, both of Sitrick
and Company, 310-788-2850/

NationsBank, N.A. and private investor group file joint plan of reorganization for Pic 'N Pay Stores, Inc.

CHARLOTTE, N.C., AND EDISON, N.J.-- October 8, 1996 -- Sussex Holdings, Inc., a private investor
group led by turnaround specialist William F. Taggart, and NationsBank, N.A. today announced that they
have jointly filed a consensual plan of reorganization and disclosure statement for Pic 'N Pay Stores, Inc.
Sussex owns all of the equity of Pic 'N Pay and NationsBank is the company's largest creditor.

Based in Charlotte, N.C., Pic 'N Pay Stores is one of the largest footwear and accessories retailers in the
southeastern United States, operating stores under the Pic 'N Pay, Shoe World and Shoe City names. The
company filed a voluntary petition for reorganization under chapter 11 of the Federal Bankruptcy Code on
February 15, 1996.

Since its chapter 11 filing, Pic 'N Pay has completed a major turnaround, closing more than 250
underperforming stores with poor or deteriorating real estate locations and downsizing the organization
substantially. The company has developed a new merchandising strategy for the 509-store chain,
including a dramatically different store concept that features a more contemporary design and a more
appealing merchandise presentation.

"We are in the process of reinventing the self-select footwear retail business," said Joseph Gajda,
President and Chief Executive Officer of Pic 'N Pay. "Our objective is to make our stores more
compelling and convenient for our time-pressed, value-conscious customers."

"We are in the early stages of an aggressive remodeling and upgrading program that will enable Pic 'N
Pay to emerge from chapter 11 as a strong competitor and major force in the footwear retail industry," Mr.
Gajda said. "The remodeling of our first 15 stores is now underway, with the rest of the chain to follow
over the next two years."

The U.S. Bankruptcy Court for the District of Delaware in Wilmington has scheduled a hearing to review
the adequacy of Pic 'N Pay's disclosure statement on November 15, 1996. With the court's approval, Pic
'N Pay will then solicit acceptances of the proposed plan of reorganization from its creditors. The
company hopes to emerge from chapter 11 protection by the end of the year.

CONTACT: Kekst and Company Michael Freitag (212) 593-2655