InterNet Bankruptcy Library - News for November 7, 1996

Bankruptcy News For November 7, 1996

  1. Brothers Gourmet Coffees, Inc. Announces Third Quarter Earnings

  2. Claridge Reports Third Quarter Results and Announces it is Formulating a Proposal to Restructure its
    11-3/4% Notes Due 2002

  3. Global Spill Management Inc. makes announcement

Brothers Gourmet Coffees, Inc. Announces Third Quarter Earnings

BOCA RATON, Fla., Nov. 7, 1996 - Brothers Gourmet Coffees, Inc. (Nasdaq: BEAN) today announced
improved results from continuing operations before a previously announced one-time non-cash charge of $5.5
million to settle all outstanding shareholder litigation. Excluding the non-cash settlement charge, the loss for the
quarter was reduced by over 40% to $1.1 million, or $.10 per share, as compared to $1.9 million, or $.17 per
share a year ago. Total loss for the third quarter, after giving effect to the shareholder litigation settlement, was
$6.6 million or $.59 per share. Net sales for the quarter were $16.7 million compared to $19.7 in 1995.

Donald D. Breen, President and CEO, said, "We are pleased with the progress the Company is making to
improve quarter to quarter sales and volume comparisons. Through the first six months of the year sales were
down approximately 30%. During the third quarter new customers helped cut that trend in half. Third quarter
sales volume improved to over 90% from a year ago, Our focus on product quality and improved packaging is
showing encouraging results. Additionally, the Company's attention to cost reduction continues to contribute to
bottom line improvement."

Brothers Gourmet Coffees, Inc. is the nation's leading wholesale supplier of branded gourmet coffees, offering 75
gourmet coffee roasts, blends and flavors in a variety of packages that meet specific customer brewing needs.
Brothers operates its own roasting facility in Houston, Texas and distributes its coffee products from local
distribution centers located throughout the United States.

                      BROTHERS GOURMET COFFEES, INC.
                 (In thousands, except per share amounts)

                          Three-Months Ended            Nine-Months Ended
                           Sept. 27,      Sept. 29,    Sept. 27,     Sept. 29,
                              1996           1995        1996           1995
        Net Sales          $   16,721    $   19,707    $  51,244     $  68,953
        Cost of goods
          sold                  9,063        10,321       27,782        39,855
               Gross profit     7,658         9,386       23,462        29,098
        Operating Expenses
          Selling, general and
            administrative      7,652         9,439       23,041        35,189
          Restructuring            42           445          263           945
          Amortization of
            intangibles           669           795        2,115         2,578
              Total operating
                expenses        8,363        10,679       25,419        38,712

        Operating loss from
          operations             (705)       (1,293)      (1,957)       (9,614)
        Litigation charge       5,500            --        5,500            --
        Interest expense, net     402           608        1,521         1,692
        Other (income) expense     15            22           (8)            4

        Loss from continuing
          operations           (6,622)       (1,923)      (8,970)      (11,310)
        Discontinued Operations:
           Loss from discontinued
            retail operations      --            --           --       (40,594)

        Net loss              $(6,622)      $(1,923)     $(8,970)     $(51,904)

        Loss per common share:
           Loss per common share
             from continuing
             operations       $ (0.59)      $ (0.17)     $($0.80)     $  (1.01)
           Loss per common share
             from discontinued
             operations            --            --           --         (3.62)

        Loss per common share $ (0.59)      $ (0.17)     $ (0.80)     $  (4.63)

        Weighted average common
          shares outstanding   11,202        11,230       11,202        11,212

SOURCE Brothers Gourmet Coffees, Inc./CONTACT: Barry Bilmes, VP Finance, Brothers Gourmet Coffees,
Inc., 561-995-2600/

Claridge Reports Third Quarter Results and Announces it is Formulating a Proposal to Restructure its 11-3/4%
Notes Due 2002

ATLANTIC CITY, N.J., Nov. 7, 1996 - The Claridge Hotel and Casino Corporation, operator of The Claridge
Casino Hotel here, today reported a $2.7 million loss for the third quarter of 1996 and announced that it is in the
process of formulating a proposal to restructure its obligations under its 11-3/4% Notes due 2002.

For the quarter ended September 30, 1996, earnings before interest, taxes, depreciation, and amortization, when
adjusted to eliminate the effects of Claridge's affiliated limited partnership structure ("Adjusted EBITDA"),
amounted to $1.6 million as compared to $8.2 million for the corresponding quarter in 1995. Casino revenues for
the Claridge were $42.8 million, a 9.2% decrease from casino revenues of $47.1 million for the same quarter in
1995. For the nine months ended September 30, 1996, the Corporation incurred a $9.0 million loss as compared
to a $166,000 loss for the same period a year ago. Adjusted EBITDA for the nine months ended September 30,
1996, was $2.3 million compared to $17.4 million in 1995.

"The Claridge's third quarter results were negatively impacted by the dilutive effects of the opening of the Trump
World's Fair Casino, increased marketing costs, and the temporary closing of our new 1,200-space self-parking
garage from July 10th through September 20th," said Robert M. Renneisen, president and chief executive officer.

The self-parking garage was closed in early July as a result of a fatal accident and did not reopen until certain
structural enhancements were complete.

In view of the operating results of the Claridge this year, the Corporation believes it is unlikely that it will be
able to meet its obligation to pay interest due on February 1, 1997, on its 11-3/4% Notes due 2002. As a result,
the Corporation is in the process of formulating a proposal to the holders of the Notes to restructure the
obligations under the Notes.

The completion of any consensual restructuring may be accomplished through a "prepackaged" bankruptcy
proceeding. If the Corporation is unable to reach a satisfactory agreement with its creditors, and the Noteholders
declare a default, the Corporation may be forced to seek the protection of the Court in a reorganization
proceeding under Chapter 11. This would permit the Company to continue business operations during the
reorganization proceeding.

In addition, the Corporation is pursuing other strategic alternatives, including a possible sale of the Company. On
August 29, 1996, the Corporation engaged Dillon Read & Co. Inc., as its financial advisors to assist the
Corporation's Board of Directors in evaluating various strategic options.

The Claridge Hotel and Casino Corporation, through its subsidiary, The Claridge at Park Place, Incorporated,
operates the Claridge Casino Hotel in Atlantic City. The casino hotel opened in July 1981, and has 59,000 square
feet of casino gaming space. The Claridge Hotel and Casino Corporation is a closely held public corporation. Its
Corporate Bonds are publicly traded on the New York Stock Exchange under the symbol CLAR02. Its quarterly
report on Form 1O-Q for the quarter ended September 30, 1996, will be filed on November 8, 1996, with the
Securities and Exchange Commission.

                            Selected Financial Information
                              (unaudited; in thousands)

                                           For the Quarter        For the
        Nine Months

                                            Ended                    Ended
                                        September 30,            September 30,
                                        1996      1995         1996        1995
         Casino                       $42,757   47,074        125,405   128,419
         Hotel, food, beverage
          and other                     3,940    4,813         10,804    12,858
         Interest from the Partnership  4,000    4,271         12,119    13,001
        Total net revenue              50,697   56,158        148,328   154,278

        Costs and expenses:
         Casino                        25,942   24,660         77,063    69,534
         Gaming taxes                   3,416    3,761         10,020    10,260
         Hotel, food, beverage
          and other                     4,547    4,975         12,997    13,866
         General and administrative     7,915    7,595         24,660    22,607
         Rent expense to the
          Partnership                   9,496    9,277         28,871    28,156
         Depreciation and amortization    896      739          2,337     2,149
         Interest expense               2,605    2,058          6,745     7,268
        Total costs and expenses       54,817   53,065        162,693   153,840

        (Loss) Income before
         income taxes                  (4,120)   3,093        (14,365)      438
        Income tax (benefit) expense   (1,467)   1,411         (5,398)      604

        Net (loss) income             $(2,653)   1,682         (8,967)     (166)

        Adjusted EBITDA                $1,589    8,167          2,338    17,431

SOURCE Claridge Hotel and Casino Corporation/CONTACT: Glenn Lillie, Robert Renneisen or Ray Spera of
Claridge, 609-340-3501, or fax, 609-340-3589/

Global Spill Management Inc. makes announcement

NEW YORK, NY--Nov. 7, 1996--Global Spill Management Inc. (GEGI) announced Thursday that, effective
Nov. 6, 1996, GEGI entered into a Recission Agreement with Phoenix Wrecking Corp. (Phoenix), pursuant to
which the acquisition by GEGI of Phoenix under an Agreement, dated June 27, 1996, has been cancelled nune pro

The consequences of such Recission Agreement are:

a) the cancellation of an aggregate of six million shares of GEGI issued on July 10, 1996, to acquire Phoenix (as
well as the later proposed issuance of four million shares of Preferred

Stock in lieu of such six million shares of Common Stock);

b) the cancellation of any and all Regulation S transactions entered into between various persons and the
management of Phoenix with indemnification by Phoenix to GEGI; and,

c) the pending request made to the SEC to cancel and permit the withdrawal of two Registration Statements on
Form S-8 filed by the management of Phoenix on behalf of GEGI with the SEC, covering an aggregate of
1,135,000 shares of GEGI Common Stock (which, if not granted, will be followed by a request for a stop transfer

One of the principal reasons for such Recission Agreement is the inability of Phoenix to provide GEGI with an
audited financial statement for the fiscal year ended June 30, 1996. Promptly upon learning of such fact, GEGI
itself retained an independent accounting firm to complete the audit of Global alone for the period ended June 30,

The discovery by GEGI that it would be required to conduct its own audit independently of Phoenix resulted,
among other things, in the late filing by GEGI of its audited 10-K for the year ended June 30, 1996.

That resulted in a hearing scheduled by NASDAQ for Nov. 21, 1996 to determine if delisting is justified. At such
hearing GEGI will make available to NASDAQ all of the pertinent facts surrounding the late filing, including a
presentation by its independent auditors. This accounts for the present trading symbol being GEGIE.

GEGI had, as of June 30, 1995, total liabilities of approximately $6.5 million. As a direct result of the
restructuring plan instituted early in April, 1996, and substantially completed on June 28, 1996, and thereafter,
accounts payable of Global as of this date amount to approximately $153,000 (exclusive of current billings from
professionals now working for GEGI).

GEGI believes that certain groups who have engaged in possible substantial short-selling of GEGI Common
Stock have been spreading rumors that GEGI is contemplating bankruptcy. Such rumors are unfounded; and the
present financial position of GEGI affords absolutely no basis for such rumors being circulated.

Giving pro forma effect to the cancellation of the 1,135,000 shares issued pursuant to the two improper Form S-8
filings, and giving further effect to the previous retirement of the proposed Regulation S shares, GEGI has issued
and outstanding today an aggregate of 2,516,466 shares of Common Stock and no Preferred Stock.

GEGI has been presented with several acquisition possibilities. These proposals are presently being studied and
will be determined upon prior to the hearing with NASDAQ scheduled for Nov. 21, 1996.

CONTACT: Global Spill Management Inc. Desiree Pierson, 610/495-6884