InterNet Bankruptcy Library - News for December 19, 1996

Bankruptcy News For December 19,

  1. Global Casinos Inc. announces successful reorganization

  2. Granny Goose Negotiations with Country Club Bog Down

  3. Chic By H.I.S. announces earnings

  4. Krause's Furniture Inc. reports progress following restructuring and announces
    third-quarter results

  5. Whittaker Corporation announces fourth- quarter and FY1996 results

Global Casinos Inc. announces successful reorganization

DENVER, CO--Dec. 19, 1996--Global Casinos Inc. (NASDAQ:GBCSD) announced
today that its wholly owned subsidiary, Casinos USA Inc., which operates the Bull
Durham Saloon & Casino ("Bull Durham") in Black Hawk, Colo., has received
Bankruptcy Court approval for its Plan of Reorganization (the "Plan") under Chapter

As a result of the confirmation of the Plan, Global Casinos will report a one-time
gain from the reorganization of approximately $1.3 million. In addition, the Plan will
reduce total liabilities of the Bull Durham from $5.4 million to $2.9 million and
requires Bull Durham to write-off a note receivable and accrued interest from one of
the secured lenders of approximately $1.2 million.

Stephen G. Calandrella, president of Global Casinos Inc., stated: "We are extremely
pleased with the results of the restructuring. Since the filing of the Chapter 11 case,
the Bull Durham Saloon & Casino has exceeded its financial projections. We expect
this trend to continue as we move forward. Further, we would like to thank all the
employees of the Bull Durham for their patience and hard work during the
reorganization and to thank the creditors for their cooperation which has resulted in
the Plan being confirmed."

CONTACT: Global Casinos Inc., Denver 303/756-3777

Granny Goose Negotiations with Country Club Bog Down

OAKLAND, Calif.--Dec. 19, 1996--Negotiations between Granny Goose Foods, Inc.
and the bankrupt Country Club Foods, Salt Lake City, have encountered difficulties
which may delay or prevent the acquisition of the Utah snack foods company
announced by Granny Goose in November.

While Granny Goose remains the high bidder, there is disagreement between Country
Club as debtor in possession and Granny Goose over the ultimate valuation of the
combined two entities and the feasibility of the Granny Goose plan for

"We continue to believe that combining these two fine companies would be in the
best interests of the employees, the communities and the customers of both, and are
trying to make that happen," said Jack Doty, chief financial officer at Granny Goose.

"We have sufficient funding in place to do the deal, and our expanding markets would
benefit from the addition of the Country Club manufacturing and distribution capacity.
However, as the negotiations have taken place under the court approval process,
difficulties have developed. As a result we think it is doubtful the acquisition can be
completed in its present form by the January 31, 1997 target date."

Doty noted that while these negotiations have proceeded, Granny Goose distribution
and revenues have grown substantially, with the addition of more than 1200 stores in
Southern California. He said that the company is now projecting 1997 revenues of
$140 million even without the added Country Club volume, and is exploring
distribution and production opportunities in the Pacific Northwest and the Mountain

Country Club Foods is a $40-million snack foods producer headquartered in Salt
Lake City with distribution throughout the mountain states.

Founded in 1946, Granny Goose Foods is the largest independent snack food
producer in the West. The company, which employs 550 people in Northern and
Southern California, makes a complete line of snacks including potato chips, corn
chips, tortilla chips, pretzels and other salted treats.

CONTACT: Granny Goose Foods, Inc. Jack Doty, 510/635-5400 or The Amidei
Group Neal Amidei, 415/956-2830

Chic By H.I.S. announces earnings

NEW YORK, NY--Dec. 19, 1996--Chic by H.I.S Inc. (NYSE:JNS) announced that it
will record a $15 million non-cash restructuring charge against earnings in the fourth
quarter of fiscal 1996 in connection with its previously announced plan to establish
manufacturing operations in Mexico.

The company has now completed the acquisition of a manufacturing facility in
Mexico, which will produce apparel for the domestic market, and expects such
facility to be in operation early in fiscal 1997. The $15 million restructuring charge
is expected to cover costs to be incurred in connection with the shifting of a portion
of the company's domestic manufacturing operations to Mexico, the write- off of
equipment in connection with the downsizing of the company's domestic
manufacturing operations, and the write-off of certain deferred financing costs.

The company believes that by transferring a portion of its manufacturing operations to
Mexico, it will be able to improve its profit margins and enhance its ability to
compete in the U.S. market.

        Income Statement Data
        (In thousands, except share
        and per share amounts)

                                            Year Ended      
                                            Year Ended
                                           Nov. 2, 1996    
                                           Nov. 4, 1995

        Net sales                                 318,790     

        Gross profit                               70,062     

        Licensing revenues                          6,359     

           Selling, general & admin. expenses      61,295     
                69,415 Restructuring and non-recurring
        charges                                30,000         
                 Operating income             (14,874)        

           Interest and finance cost                6,544     

           Income (loss) before provision
        for income taxes and extraordinary
         items                                (21,418)        


        Provision for taxes                     4,146         

        Cumulative effect on prior years of     
        change in accounting for income taxes       0         
            Net income (loss)                 (25,564)        

        Earnings per common share data:

        Earnings before restructuring and 
         non-recurring charges                   $0.45        

        Net income (loss)                       $(2.62)       

        Average number of common shares           9,753,868   

CONTACT: CHIC by H.I.S., New York Burt Rosenberg, 212/302-6400, ext. 335

Krause's Furniture Inc. reports progress following restructuring and announces
third-quarter results

BREA, Calif.--Dec. 19, 1996--Krause's Furniture Inc. (Nasdaq:SOFA) Thursday
reported progress in returning the company to profitability following a previously
announced restructuring in August 1996, in which it received approximately $17
million from GE Capital Services and a group of investors led by Philip M. Hawley,
the company's recently appointed chairman and chief executive officer.

The company announced that EBITDA (earnings before interest, taxes, depreciation
and amortization), which had been a negative $2.8 million in the first quarter and a
negative $5.3 million in the second quarter, improved to a negative $1.7 million in
the 13 weeks ended Oct. 27, 1996.

``We have made considerable progress in managing our margins and our variable
selling expenses,'' said Hawley, ``and we expect to see further improvements in
EBITDA during the current quarter.''

Hawley noted that prior to the restructuring, the company's most immediate problem
was a severe shortage of cash, which curtailed its ability to purchase the raw
materials necessary to match customer orders.

``Because the refinancing did not occur until well into the third quarter, the effects of
the earlier reduced liquidity are reflected in the results now reported. However, with
the liquidity problem behind us, we are working toward returning the company to

``Due in large part to a planned reduction in our promotional discounting, revenues
declined during the quarter. However, even with lower sales, the reduction in
promotional discounting resulted in an encouraging improvement in gross margins,
which were 52.4 percent of net sales, compared with 47.1 percent in the six months
ended July 28, 1996.

``We also reconfigured our selling commissions to better reflect industry norms,
which has led to an improvement in our variable selling expenses. In fact, variable
selling expenses as a percentage of net sales, which were 12.7 percent as recently as
July, were down to 11 percent for the quarter.''

Revenues for the quarter ended Oct. 27, 1996, were $26.9 million vs. $31.3 million
in the same period last year. The net loss was $2.5 million, or 24 cents per share, vs.
a net loss of $1.4 million, or 34 cents per share, in the same period a year ago.

The $2.5 million net loss for the quarter compares with a net loss of $3.6 million
reported in the first quarter of 1996, and a net loss of $6.2 million reported in the
second quarter of 1996. The average number of shares outstanding was 10.6 million
vs. 4.1 million a year ago.

Revenues for the 39 weeks ended Oct. 27, 1996, were $82.7 million vs. $92.5
million in the same period a year ago, and the net loss was $12.4 million, or $1.62
per share, compared with a net loss of $4.5 million, or $1.15 per share, a year ago.
The average number of shares outstanding was 7.7 million vs. 3.9 million a year ago.

The increase in average shares outstanding stems from the August 1996 restructuring.
On Oct. 27, 1996, there were 19 million shares outstanding.

The company's strategic objectives include: improving its manufacturing processes,
upgrading and remodeling retail showrooms to provide a more appealing
environment for customers, reducing showroom square footage to control occupancy
expenses, remerchandising, refocusing advertising expenditures and an overall
reduction in corporate expenses.

Krause's Furniture wholly owns Krause's Sofa Factory, a vertically integrated
manufacturer and retailer of made-to-order upholstered furniture. Krause's sells its
furniture under the names Krause's Sofa Factory and Castro Convertibles through 83
furniture showrooms and four dealers in 12 states.

Except for historical information contained herein, the statements in this release are
forward-looking statements that are made pursuant to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve known and unknown risks and uncertainties
which may cause the company's actual results in future periods to differ materially
from forecasted results.

These risks include, among others, the change in the retail environment and the ability
of the company to execute its operating strategies. Those and other risks are
described in the company's filings with the Securities and Exchange Commission
(SEC), copies of which are available from the SEC or may be obtained upon request
from the company.

                        Krause's Furniture Inc.
                Consolidated Statement of Operations
                (in thousands, except per share data)

                               13 Weeks Ended      39 Weeks
                             Oct. 27,  Oct 29,    Oct. 27,  
                             Oct. 29
                               1996     1995       1996      

        Net furniture sales     $26,865    $31,286   $82,738  
         $92,465 Cost of sales            12,781     15,031   
        42,364     44,620

        Gross profit             14,084     16,255    40,374  

        Operating expenses:
         Selling                 14,081     14,915    43,556  
           44,532 General and
          administrative          2,084      2,385     7,852  
         Amortization of
          goodwill                  255        255       765  
                             16,420     17,555    52,173    

        Loss from operations     (2,336)    (1,300)  (11,799) 

        Interest expense           (296)      (165)     (782) 
            (528) Other income                111         70  
            207        259

        Loss before income 
         taxes                   (2,521)    (1,395)  (12,374)
        Income tax benefit          -          -         -    

        Net loss                ($2,521)   ($1,395) ($12,374) 

        Net loss per share      (24 cents) (34 cents) ($1.62) 

        Average number of common
         shares outstanding      10,556      4,082     7,661  

CONTACT: Krause's Furniture Inc. Philip M. Hawley, 714/990-3100 or Silverman
Heller Associates Eugene G. Heller/Philip Bourdillon, 310/208-2550

Whittaker Corporation announces fourth- quarter and FY1996 results

SIMI VALLEY, Calif.--Dec. 19, 1996--Whittaker Corporation (NYSE:WKR)
Thursday announced the results of its operations for the fourth quarter and fiscal year
ended Oct. 31, 1996.

The net loss for the quarter was $8,181,000, or 74 cents per share. Net income for
the quarter ended Oct. 31, 1995, was $4,237,000, or 44 cents per share. Sales for the
current quarter were $67,690,000, compared with $56,764,000 for the fourth quarter
of fiscal year 1995.

For the 1996 fiscal year, after pre-tax charges for acquired in-process research and
development of $11.7 million (75 cents per share after tax), the net loss for 1996 was
$17,127,000, or $1.70 per share, compared with net income of $7,865,000, or 82
cents per share, in fiscal 1995. Sales for the year were $221,877,000, compared with
$159,479,000 for the previous year.

The company's Aerospace Group's sales and operating profit of $130,372,000 and
$20,286,000, respectively, for 1996, compared with sales and operating profit of
$128,954,000 and $29,278,000, respectively, for the prior year, included substantial
increases in the sales and operating profits of its two aircraft products units, but a
substantial reduction in 1996 in sales and a substantial loss in its defense electronics
unit, compared with an operating profit for the unit in the prior year.

The company's bank lending group has waived compliance until Feb. 28, 1997, with
certain financial ratio covenants in the company's credit agreement. The waiver
requires the company to pay additional fees and, in certain circumstances, additional

Commenting on the results, Whittaker Chairman and Chief Executive Officer Joseph
F. Alibrandi said: ``The past year has been one of difficult transition for us.

``We are taking the right steps needed to focus our efforts, increase our sales and
reduce our expenses in both of our operating segments so that we can return to
profitability in 1997, and lay the foundation for significant growth. Although it will
take time and energy, we believe that substantial rewards lie ahead.''

Whittaker Corporation provides products and services with a high technology and
engineering content to the aerospace and communications industries, through its two
principal operating segments. For additional information on Whittaker, contact the
Internet home page at

                              Whittaker Corporation
                        Consolidated Statements of Income
                                   ($ in 000)

                              For the three months       For
                              the year
                                  ended Oct. 31,         ended
                                  Oct. 31, 1996     1995      
                                     1996     1995

        Sales                      $ 67,690 $ 56,764     
        $221,877 $159,479

        Costs and expenses   
         Cost of sales               40,682   31,778      
         129,890   89,974 Engineering and
           development                6,108    3,300       
           19,964    7,741
         Selling, general and
           administrative            27,522   13,065       
           78,562   39,608
         Acquired in-process
           research and development      --       --       
           11,700    3,250
         Restructuring costs          1,168       --        
         2,574      382

        Operating profit (loss)      (7,790)   8,621      
        (20,813)  18,524

        Interest expense              3,958    1,742       
        11,018    5,897 Interest income                (198)  
          (89)       (6,299)    (568) Other expense           
               342       35           684      169

        Income (loss) before
          provision for taxes       (11,892)   6,933      
          (26,216)  13,026
        Provision (benefit) for
          taxes                      (3,711)   2,696       
          (9,089)   5,161
        Net income (loss)          $ (8,181) $ 4,237     
        $(17,127) $ 7,865 Net income (loss) per
          share                   (74 cents) 44 cents     $
          (1.70) 82 cents

        Average common and common
          equivalent shares
          outstanding (000)          11,029    9,674       
          10,065    9,625

        Note:  Certain reclassifications have been made to
        1995 numbers to
           conform to 1996 presentation.

                       Whittaker Corporation
                    Consolidated Balance Sheets
                             ($ in 000)

                                          As of Oct. 31,
                                       1996           1995
        ASSETS                          (unaudited)
        Current Assets
        Cash                              $  1,566      $   
        161 Receivables                         74,258       
        64,708 Inventories                         46,087     
          38,975 Other current assets                 2,319   
             2,053 Income taxes recoverable             5,443
               1,452 Deferred income taxes              
        17,928        15,151 Total Current Assets             
         147,601       122,500

        Property and equipment, at cost     89,787       
        78,059 Less accumulated depreciation and
         amortization                      (46,421)     
        Net Property and Equipment          43,366       

        Other Assets
        Goodwill, net of amortization       95,003       
        33,414 Other intangible assets, net of
         amortization                       45,422       
        Notes and other noncurrent
         receivables                         2,898        
        Other noncurrent assets             14,065       
        11,709 Net assets held for sale            31,129     
          27,115 Total Other Assets                 188,517   

        Total Assets                      $379,484     

        Current Liabilities              
        Current maturities of long-term
         debt                             $161,482      $
        Accounts payable                    13,830       
        14,650 Accrued liabilities                 38,020     
          29,530 Total Current Liabilities          213,332   

        Other Liabilities
        Long-term debt                         453       
        70,694 Other noncurrent liabilities        12,019     
          11,340 Deferred income taxes               22,544   
            16,273 Total Other Liabilities             35,016

        Stockholders' Equity
        Capital stock
         Preferred stock                         1            
         1 Common stock                          110          
        Additional paid-in capital          70,321       
        19,261 Retained earnings                   60,704     
          83,076 Total Stockholders' Equity         131,136   

        Total Liabilities and 
         Stockholders' Equity             $379,484     

        NOTE:  Certain reclassifications have been made to
        1995 numbers to conform to 1996 presentation. -0-
                            Whittaker Corporation
                            Industry Segment Data
                                ($ in 000)

                               For the Three Months    For the
                                  Ended Oct. 31,       Ended
                                  Oct. 31,
                                1996        1995     1996     

        Aerospace                 $37,316     $39,445  
        $130,372   $128,954 Communications             30,374
            17,319     91,505     30,525
                              $67,690     $56,764   $221,877  

        Operating profit (loss):

        Aerospace                 $ 3,147     $10,043   $
        20,286   $ 29,278 Communications             (7,570)  
             307    (30,663)    (3,431) Corporate and Other   
            (3,367)     (1,729)   (10,436)    (7,323)
                              $(7,790)    $ 8,621   $(20,813)
                              $ 18,524

        Operating profits for 1996 and 1995 were affected by
        write-offs of acquired in-process research and
        development associated with purchase of communications
        businesses.  In addition, both business segments
        incurred restructuring charges during 1996.  The
        following table provides a comparison of segment
        operating profit to operating

        profit excluding these special charges:

                               For the Three Months     For
                               the Year
                                  Ended Oct. 31,       Ended
                                  Oct. 31,
                                1996        1995     1996     
        Aerospace operating
          profit                  $ 3,147     $10,043   $
          20,286   $ 29,278
         Restructuring                421        -          
         961        210
                              $ 3,568     $10,043   $ 21,247  
                              $ 29,488

        Communications operating
          loss                    $(7,570)    $   307  
          $(30,663)  $ (3,431)
         Acquired in-process research
          and development                                
          11,700      3,250
         Restructuring                747         -       
         1,613        172
                              $(6,823)    $   307   $(17,350)
                              $     (9)

CONTACT: Whittaker Corporation, Simi Valley Richard Levin, 805/526-5700, ext.
641 John Otto, 805/526-5700, ext. 662