TCR_Public/961204.MBX




InterNet Bankruptcy Library - News for December 4, 1996






Bankruptcy News For December 4,
1996



  1. Churchill Technology and its Subsidiary, Novon International, File for
    Protection Under Chapter 11 Bankruptcy Provisions

  2. Newton Man Charged with Bankruptcy Fraud, U.S. Attorney Reports

  3. Former Boston Lawyer Sentenced For $500,000 Fraud, U.S. Attorney Reports

  4. Seven-Up/RC Bottling Company of Southern California Reports Third Quarter
    Results Following Reorganization Efforts

  5. Tim Ryan resigns as Sizzler USA president




Churchill Technology and its Subsidiary, Novon International, File for Protection
Under Chapter 11 Bankruptcy Provisions


BUFFALO, N.Y., Dec. 4, 1996 - Churchill Technology, Inc. (Nasdaq: CHUR), and its
operating subsidiary, Novon International, Inc., announced today that they have filed
voluntary petitions seeking protection under Chapter 11 of the Bankruptcy Code. The
petitions were submitted Nov. 27 in the U.S. Bankruptcy Court for the Western
District of New York.


Robert H. Downie, president, said the filings will give both companies time to
restructure their financial situation to further develop their biodegradable plastics
business. "Demand for Novon's biodegradable products continues to grow steadily in
the United States, Europe and the Far East," said Downie, "and we fully expect to
meet that demand."


"We anticipate that this action will result in our emergence from Chapter 11 in a
strong and healthy financial situation to the benefit of our creditors and shareholders,"
Downie said. "We are in an exciting market and have a a very viable entity in Novon,
which is making enormous progress in the commercialization of its products. Chapter
11 will give us the time needed for these developments to come to fruition."


Churchill Technology, Inc., is the parent company of Novon International, Inc., a
leader in the development and production of specialty additives and resins that safely
make plastics biodegradable. The company's products are marketed as Poly-
NOVON(R), Degra-NOVON(R), and Aqua-NOVON(R).


Novon International, Inc., is a growth-stage company whose products include
additives, specialty polymers, and water-soluble materials that are used in packaging,
composting, agriculture, food service, pet products, and personal care applications.


SOURCE Churchill Technology, Inc. /CONTACT: Media Contact: Dick Shaner, Jr. of
Crowley Webb Public Relations, 716-856-2932; or Investor Contact: Maureen
Lehsten of Churchill Technology, Inc., 716-874-8696/




Newton Man Charged with Bankruptcy Fraud, U.S. Attorney Reports


BOSTON, MA - Dec. 4, 1996 - Charges were filed today against a Newton,
Massachusetts man for bankruptcy fraud for concealing his ownership interest in his
residence.


United States Attorney Donald K. Stern announced that a one- count criminal
information was filed today charging STEPHEN CARP, 51, of 824 Dedham Street,
Newton, Massachusetts, with concealing from his bankruptcy creditors his interest in
his residence.


The information alleges that in 1991, CARP entered into an oral agreement with a
friend concerning the purchase of the Newton property: the agreement was that the
friend would provide the down- payment, the property would be purchased in the
friend's name, CARP would obtain the funds to renovate the property, CARP would
make all the arrangements for renovations, CARP would live in the property and
CARP would pay the mortgage, taxes and other expenses of the property. The
agreement also provided that when the property was ultimately sold, CARP and his
friend would share the proceeds, if any. The Information further alleges that when
CARP filed for bankruptcy in February, 1995, he failed to disclose his equitable
interest in the Newton property.


CARP faces five years in prison, a $250,000 fine, a $100 special assessment and
three years supervised release.


The case was investigated by the Federal Bureau of Investigation, was referred by the
U.S. Trustee's Office in Boston, and is being prosecuted by Assistant U.S. Attorney
Mark J. Balthazard of Stern's Economic Crimes Unit.


SOURCE U.S. Attorney's Office /CONTACT: Amy Rindskopf or Joy Fallon of U.S.
Attorney's Ofice, 617-223-9445/




Former Boston Lawyer Sentenced For $500,000 Fraud, U.S. Attorney Reports


BOSTON, MA - Dec. 4, 1996 - A 77-year old lawyer, formerly practicing in Boston,
was sentenced today to eight months of home confinement and ordered to pay a
$30,000 fine for having engaged in a mail fraud scheme to defraud a bankruptcy
trustee of $500,000.


United States Attorney Donald K. Stern stated that attorney JEROME ROSEN, 77, of
36 Bullard Road, Weston, Massachusetts, who previously had a law office at 60 State
Street in Boston, was sentenced today by U.S. District Judge Robert J. Keeton to eight
months of home confinement as part of a two-year term of probation, and was also
ordered to pay a $30,000 fine.


ROSEN was convicted of 4 counts of mail fraud after a trial in September. The
evidence presented during the trial showed that ROSEN engaged in a scheme to
defraud the trustee of bankruptcy debtor N.E. Tri-State Development Corp., a
company which ROSEN represented. ROSEN negotiated the sale of N.E. Tri- State's
land in Maine for $500,000 to be paid to the bankruptcy trustee, but with an
undisclosed side agreement involving the payment of $25,000 to ROSEN, and
payments over several years totalling nearly $500,000 to the company's former
owners, who were also ROSEN's clients. The evidence showed that ROSEN made
material misrepresentations to the bankruptcy trustee and failed to disclose the side
agreement. When the trustee later learned about the side agreement from another
source, he had the sale cancelled and re-negotiated the price with the buyer, ultimately
receiving an additional $230,000.


This case is one of four bankruptcy fraud-related cases charged in Massachusetts in
February as part of a national Bankruptcy Fraud Initiative, also known as Operation
Full Disclosure. The defendants in the other cases all previously pled guilty.


The case was investigated by the Federal Bureau of Investigation, was referred by the
U.S. Trustee's Office in Boston, and was prosecuted by Assistant U.S. Attorney Mark
J. Balthazard of Stern's Economic Crimes Unit.


SOURCE U.S. Attorney's Office /CONTACT: Amy Rindskopf or Joy Fallon of U.S.
Attorney's Ofice, 617-223-9445/




Seven-Up/RC Bottling Company of Southern California Reports Third Quarter
Results Following Reorganization Efforts


VERNON, Calif., Dec. 4, 1996 - Seven-Up/RC Bottling Company of Southern
California, Inc.
(Nasdaq: SURC) reporting on its results for the third quarter ended
September 30, 1996, stated that the Company enjoyed significantly improved
EBITDA performance driven by the Company's efforts to restructure its core
direct-store-door and contract manufacturing businesses. On a comparable pro-forma
basis for the third quarter, EBITDA increased to $3.5 million from $0.2 million.
EBITDA for the nine months ended September 30, 1996 increased to $6.9 million
from $2.7 million, or 159%. EBITDA represents earnings before interest income and
expense, financial restructuring costs, reorganization items, other income, income
taxes, depreciation and amortization. EBITDA should not be considered as an
alternative to net income (as determined in accordance with GAAP). EBITDA is
presented because it is a widely accepted financial indicator of a company's ability to
service and/or incur indebtedness.


The Company's net loss before income taxes and extraordinary items decreased to
$12.3 million for the nine months ending September 30, 1996 from $23.6 million for
the comparable 1995 period as a result of the reorganization and recent restructuring
that included the sale of the Puerto Rico subsidiary, restructuring costs, reorganization
items and the elimination and downsizing of several product lines.


"We are extremely pleased with our Company's performance following the
implementation of our reorganization strategies during 1996," said Rick Ferguson,
executive vice president and chief financial officer of Seven-Up/RC Bottling. "The
improvement for both the third quarter and nine months year- to-date was driven by
the combined result of higher case volume, improved volume mix of higher margin
packages, lower raw material costs and a decrease in variable and fixed expenses,
again, due entirely to our reorganization efforts. The beverage trademarks in our
flavor portfolio continue to dominate their respective flavor categories with a
combined share of market in our franchise territories greater than the comparable
combined share of market nationally."


Seven-Up/RC Bottling Company of Southern California, Inc. is one of the largest
independent bottlers of franchised soft drink and beverage products in the United
States. The Company has the exclusive right within its territories of Southern
California, Central California and portions of Nevada and New Mexico to
manufacture and/or distribute, in a variety of packages, the trademarks of Seven-Up,
Royal Crown, A&W Sunkist, Hawaiian Punch, Schweppes, Evian, Perrier, Welch's,
Mistic and Yoo-Hoo.


SOURCE Seven-Up/RC Bottling Company of Southern California, Inc. /CONTACT:
Edward Whiting of Whitman, Heffernan, Rhein Co., Financial Advisor of Seven-Up,
213-267-6233/




Tim Ryan resigns as Sizzler USA president


LOS ANGELES, CA --Dec. 4, 1996--Sizzler International Inc. (NYSE:SZ) has
announced the resignation of Timothy J. (Tim) Ryan as president of Sizzler USA in
conjunction with the company's consolidation of international and domestic
responsibilities.


Kevin Perkins, Sizzler International president and chief executive officer, will assume
the additional responsibilities of heading Sizzler's domestic business. Ryan will
continue as a contracted consultant to Sizzler management.


In making the announcement, Perkins said: ``In developing our plan to reorganize our
business and emerge from Chapter 11 protection, it became clear that we had to
change Sizzler USA's organizational structure to meet current realities.


``Part of that plan, which was recommended by Tim Ryan, calls for consolidation
where possible of overlapping executive positions in international and domestic
operations, including that of Sizzler USA president.''


Sizzler is in the midst of a financial reorganization under the protection of a Chapter
11 filing initiated by the company on June 2, 1996. Sizzler has announced that it
expects to file a reorganization plan before year end and looks forward to emerging
from the Chapter 11 process by April 30, 1997, the end of its current fiscal year.


Sizzler International operates or licenses 438 Sizzler restaurants worldwide. In
addition, the company operates 93 Kentucky Fried Chicken (KFC) restaurants and one
Italian Oven restaurant in Queensland, Australia.


CONTACT: Sizzler International Inc. Christopher R. Thomas, 310/827-2300