InterNet Bankruptcy Library - News for December 5, 1996

Bankruptcy News For December 5,

  1. biosys Chapter 11 status

  2. Brendle's To Commence Liquidation of Retail Store Operations

  3. AutoLend Group, Inc. Announces Purchase Of Option On 25% Of Stock Of
    International Thoroughbred Breeders, Inc. And Further Extension Of Expiration
    Date Of Debenture Exchange Offer To December 20, 1996

  4. Jay Jacobs Inc. reports profitable third quarter results

biosys Chapter 11 status

COLUMBIA, Md.--Dec. 5, 1996--biosys Inc. (Nasdaq: BIOSQ) Thursday released
the following statement with respect to events connected with its filing for
reorganization under Chapter 11 on Sept. 27, 1996.

Since filing for bankruptcy under Chapter 11 of the Bankruptcy Code, biosys has
been operating its business as debtor-in- possession. biosys continues to evaluate its
opportunities for reorganization and continued operations or for the sale of all or part
of its assets.

As part of this process, biosys has filed with the United States Bankruptcy Court for
the District of Maryland a motion for authority to sell, free and clear of liens, the
assets of all or some of its business segments, which include its microbial products
segment, botanical insecticides segment, pheromone segment, and KLEENTEK(R)

biosys will be using an auction process to obtain bids from interested purchasers,
and a preliminary hearing before the court has been scheduled for Dec. 20, 1996.
biosys will present and recommend bids to the court for approval or rejection.

Under the auction process the court may authorize the sale of the assets of all or some
of the business segments, with or without the recommendation of the
debtor-in-possession. Further, as to assets as to which no bid is accepted, certain of
biosys' creditors will have the right to solicit bids and file a motion to seek court
approval to sell all or part of such assets.

It is too early to determine whether a reorganization and continued operations or an
assets sale will be the course of action recommended to the court.

However, the auction process and potential solicitation of bids by certain creditors
could result in proceeds of sale which may not be greater than biosys' debt. In that
event biosys' equity holders (both preferred and common) and their recovery in the
bankruptcy process would be adversely affected without further notice to the equity

Notice of the motion has been served pursuant to a court-approved service list that
includes some but not all equity holders. The company will provide the notice to
equity holders not on the service list upon written request.

biosys is a leader in the development and commercialization of biological products
worldwide, primarily for insect control applications, based on multiple technologies,
including nematodes and baculoviruses, as well as environmentally benign
pheromone products.

biosys also has a contract fermentation business unit, which scales up and produces
fermentation products for third party clients. biosys has active research programs in a
variety of areas, including nematode and pheromone product development,
baculovirus production via both in vivo and in vitro methodologies, and applications
of recombinant virus technology.

CONTACT: biosys Inc. Dr. Edwin C. Quattlebaum, president/CEO or Michael R.N.
Thomas, vice president/CFO, 410/381-3800

Brendle's To Commence Liquidation of Retail Store Operations

ELKIN, N.C., Dec. 5, 1996 - Brendle's Incorporated ("Brendle's") (Nasdaq: BRDL)
announced today its intentions to commence a liquidation of all of its retail store
operations. Headquartered in Elkin, North Carolina, Brendle's has been in business
since 1919. By September, 1991, Brendle's had 58 stores and over 3,000 employees,
with its stores merchandise as if they were a group of specialty stores under one roof,
offering lines of jewelry, consumer electronics, small applicances, photographic
equipment, sporting goods, toys, gifts, housewares, juvenile items, silver, crystal,
lamps, clocks and other miscellaneous products. The Brendle's stores were operated
as hybrid "showroom" stores offering to consumers nationally advertised brand name
merchandise at prices substantially less than the manufacturer's suggested retail

Due to various adverse factors, on April 16, 1996, Brendle's filed for protection
under Chapter 11 of the United States Bankruptcy Code in order to implement a new
strategic business plan premised upon a significantly revised merchandising strategy
which eliminated certain departments of merchandise, presented new product lines in
the "Party Universe" and crafts departments and expanded offerings in "for the home"
merchandise. Brendle's also committed to a corporate downsizing, closing 18 of the
Company's 30 stores and renovating its 12 remaining stores. Brendle's had
previously filed a Chapter 11 reorganization petition in November, 1992, and
Brendle's successfully consummated the previous plan of reorganization in April,
1994, which involved the closing of 21 of its store locations.

Having given careful consideration to the Company's performance since its second
Chapter 11 filing, the Brendle's Board of Directors determined that there was no
reasonable alternative remaining for the Company except to discontinue its
operations. Joseph M. McLeish, the Company's President and Member of The Board
of Directors, indicated that "the recently adopted merchandising strategy was a very
promising one. In order to be successful, however, the merchandising strategy needed
time to mature." Mr. McLeish added that he was grateful for the effort put forth by the
Company's dedicated management and employees and for the patronage of the loyal
Brendle's customers that the Company has been privileged to serve.

Subject to Bankruptcy Court approval, Brendle's anticipates that it will commence
the liquidation of its stores' inventory through "going out of business" sales beginning
early this month.

SOURCE Brendle's Incorporated /CONTACT: Joseph M. McLeish, President and
CEO, Brendle's Incorporated, 910-526-6570/

AutoLend Group, Inc. Announces Purchase Of Option On 25% Of Stock Of
International Thoroughbred Breeders, Inc. And Further Extension Of Expiration Date
Of Debenture Exchange Offer To December 20, 1996

ALBUQUERQUE, N.M., Dec. 5, 1996 - AutoLend Group, Inc. (OTC Bulletin Board:
AUTL) (the "Company") announced today that it has obtained an option from NPD,
Inc. ("NPD"), a corporation controlled by Nunzio P. DeSantis, the Company's
chairman, to purchase stock owned by Robert Brennan in International Thoroughbred
Breeders, Inc. (AMEX: ITB) ("ITB") which operates two New Jersey horse racing
tracks and owns a casino site in Las Vegas, NV, which it intends to develop. Mr.
Brennan's sale of his ITB shares to NPD, which represents approximately 25% of the
outstanding shares of ITB, is subject to approval by the bankruptcy court responsible
for Mr. Brennan's personal Chapter 11 bankruptcy proceedings. Upon the approval of
the New Jersey Racing Commission and the New Jersey Casino Control Commission
and the dismissal of the involuntary bankruptcy petition which has been filed against
the Company in Albuquerque, NM, the Company will acquire all of the ITB stock
owned by NPD for a purchase price equal to that paid by NPD. The Company has
also entered into an agreement granting an option to a third party to purchase one-half
of the shares of ITB the Company acquires, and the Company will retain a proxy to
vote those shares for a three-year period. The third-party has extensive experience in
the gaming and horse racing industries.

The Company also announced that it has further extended the Expiration Date for its
Exchange Offer for its 9.5% Convertible Subordinated Debentures Due 1997 to 5:00
P.M., New York City time, on December 20, 1996. The Exchange Offer was
previously set to expire on December 6, 1996.

Copies of the Offering Circular and related materials, including the Letter of
Transmittal, may be obtained from the Company as well as from CEDEL BANK,
S.A. and EUROCLEAR. The Company expressly reserves the right to further extend
the period of the Exchange Offer, to terminate the Exchange Offer, or to otherwise
amend the Exchange Offer in any respect, subject to the terms set forth in the Offering
Circular dated October 22, 1996, as supplemented.

Mr. DeSantis stated that, "Subject to the required regulatory approvals, the dismissal
of the involuntary bankruptcy petition and the conversion of the debentures, the
Company will be developing a plan to move into the gaming industry."

SOURCE AutoLend Group, Inc. /CONTACT: Nunzio DeSantis, Chairman, AutoLend
Group, Inc., 505- 768-1000/

Jay Jacobs Inc. reports profitable third quarter results

SEATTLE, WA--Dec. 5, 1996--Jay Jacobs Inc. (JAYJ) today reported a profit of
$694,000, or 11 cents per share, for its third quarter ended Oct. 26, 1996.

This compared to a loss of $495,000, or 8 cents per share, for the same quarter last
year. For the nine months ended Oct. 26, 1996, the company lost $1,757,000, or 29
cents per share, compared to $3,072,000, or 51 cents per share.

Sales for the third quarter were $13,479,000 compared to $18,357,000 for the same
quarter last year. During the quarter the company operated 15 percent less stores than
the same quarter last year. Comparable store sales declined 16 percent during the
quarter, which was a result of inventory levels that were approximately 33 percent
below same store levels last year.

The third quarter and year to date results were positively impacted by a federal
income tax refund of $2,355,000, as a result of a net operating loss carryback, which
was received in October, 1996.

Sales for the first nine months were $43,776,000 compared to $54,261,000 last year.
During the first nine months the company operated 16 percent less stores than the
same period last year. Comparable store sales declined 7 percent during the period.
The decline in inventory and resultant decline in comparable store sales during the
third quarter, significantly impacted the year to date comparable store sales results.

As a result of the federal income tax refund received in October, 1996, the company
has been able to build inventory close to the anticipated level, for the holiday selling
season. While the refund has supplemented working capital requirements, the
company continues to seek additional sources of capital to enhance its working
capital position. The federal income tax refund referenced above, is subject to
review by the Internal Revenue Service.

Jay Jacobs Inc. is a Seattle based speciality apparel retailer selling to men and
women, currently operating through its 130 stores located in 20 states. During the
nine month period, the company opened 15 stores and closed 21 stores.

                        JAY JACOBS INC. AND SUBSIDIARIES
                           Consolidated Balance Sheet
                          (Dollar amounts in thousands)

                                      Oct. 26, 1996

        Current assets:   
         Cash and cash equivalents            $    78
         Accounts receivable                      528
         Inventories                            7,706
         Prepaid expenses                         244
           Total current assets                 8,556

        Property and equipment, net             5,648
           Total assets                       $14,204

        Liabilities and Shareholders' Equity
        Current Liabilities:
         Accounts payable                     $ 4,431
         Accrued payroll                          237
         Accrued restructuring expenses         2,725
         Other accrued expenses                 1,168
         Short Term Notes                       2,781
           Total current liabilities           11,342

        Deferred rental credits                   549

        Accrued reorganization liability          666

        Shareholders' equity:
         Common stock                          12,991
         Retained earnings                    (11,344)
         Total shareholders' equity             1,647
           Total liabilities and shareholders' ------
        equity                            $14,204

                        JAY JACOBS INC. AND SUBSIDIARIES
                      Consolidated Statement of Operations
                          (Dollar amounts in thousands)

                                         Three months ended
                                    Oct. 26, 1996  Oct. 28,

        Net sales                          $ 13,479      $
        18,357 Operating costs and expenses:
         Cost of sales, buying and
          occupancy costs                    10,883       
        Selling, general and
         administrative expenses              4,197        
        Interest expense                         60          
                                          -----         -----
        Net operating expenses               15,140       
                                         ------        ------
        Income (loss) before income
         taxes                               (1,661)        
        Federal income tax payment
         (refund)                             2,355           
        Net income (loss)                       694         
        (495) Earnings (loss) per share          11 cents     
        (8 cents) Weighted average number of
         shares outstanding                   6,127        

                                         Nine months ended
                                    Oct. 26, 1996  Oct. 28,

        Net sales                          $ 43,776      $
        54,261 Operating costs and expenses:
         Cost of sales, buying and
          occupancy costs                    34,579       
        Selling, general and
         administrative expenses             13,081       
        Interest expense                        228         
                                           ----          ----
        Net operating expenses               47,888       
                                         ------        ------
        Income (loss) before income
         taxes                               (4,112)      
        Federal income tax payment (refund)   2,355           
        -- Net income (loss)                    (1,757)      
        (3,072) Earnings (loss) per share         (29 cents)  
         (51 cents) Weighted average number of
         shares outstanding                   6,093        

CONTACT: Jay Jacobs Inc. Bill Lawrence, 206/622-5400 ext. 217