InterNet Bankruptcy Library - News for January 14, 1997

Bankruptcy News For January 14, 1997

  1. Anacomp Announces Agreement on New Plan for Refinancing of Senior Debt

  2. United Financial Group, Inc. Files for Chapter 11

  3. Comprehensive Care Corporation Reports Second Quarter Results

  4. Bradlees Announces a New Amendment to Its Debtor-In-Possession Financing

  5. Barry's Jewelers reports fiscal 1997 second quarter results, announces expense and
    debt reduction plan

Anacomp Announces Agreement on New Plan for Refinancing of Senior Debt

ATLANTA, GA - Jan. 14, 1997 - Anacomp, Inc. (Nasdaq: ANCO) today said that it has
reached a new agreement with Lehman Brothers, Inc. for the refinancing of Anacomp's
senior secured debt. Lehman Brothers has agreed to underwrite a new $80 million debt
facility to replace Anacomp's existing senior secured notes. The new debt facility will
consist of $55 million in term loans and a revolver of up to $25 million.

In addition, Anacomp announced its intention to pre-pay the second principal installment
of its existing senior debt. The company plans to make a payment of approximately $14.3
million on February 20, about six weeks ahead of schedule. This payment will reduce
Anacomp's senior debt to close to $80 million, which is the amount to be provided in the
new refinancing agreement with Lehman Brothers. Anacomp also pre-paid its first
principal installment back in September.

The new Lehman Brothers refinancing agreement replaces an earlier plan for a $115
million credit facility. "Because of our strong cash flows, we realized that we had more
than enough cash to reduce our senior debt to $80 million," explained Donald L. Viles,
Anacomp's chief financial officer, "and by doing so we could structure a more attractive
and less costly refinancing deal." Unlike the previous agreement, the new refinancing
agreement does not require the consent of Anacomp's senior subordinated noteholders.

"With the upcoming pre-payment on our senior debt, we will have repaid almost one-third
of our senior debt since exiting Chapter 11 in June," continued Viles. "These pre-payments
are part of our overall financial strategy to delever the company's balance sheet. At the
same time, our new debt facility with Lehman Brothers will provide us with significantly
lower interest rates, saving us more than $3 million in the first 12 months alone. In
addition, our new revolving credit facility will provide us greater latitude in managing our
cash and in making wise investments in new products and services." Anacomp expects the
refinancing to be completed by February 28, 1997.

Serving customers throughout the world, Anacomp provides products and services that
manage corporate information throughout its life cycle.

SOURCE Anacomp, Inc. /CONTACT: Media: Jeff Withem, 404-876-3361 or; or Analysts: Nancy Vandeventer, 800-350-3044 or

United Financial Group, Inc. Files for Chapter 11

HOUSTON, TX - Jan. 14, 1997 - United Financial Group, Inc., a Delaware corporation,
announced today that it had filed a voluntary petition under Chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The
filing was made in order to implement the terms of a Settlement Agreement entered into by
UFG with the Federal Deposit Insurance Corporation, the Office of Thrift Supervision,
and others in late 1995 for the purpose of distributing substantially all of the assets of UFG
to its creditors. The Settlement Agreement and related documents provided a mechanism
for settling the claims of the FDIC, the OTS and others against UFG.

The case has been assigned to The Honorable Helen S. Balick, Chief United States
Bankruptcy Judge for the District of Delaware.

SOURCE United Financial Group Inc. /CONTACT: Arthur S. Berner, 713-650-2729/

Comprehensive Care Corporation Reports Second Quarter Results

CORONA DEL MAR, Calif., Jan. 14, 1997 -Comprehensive Care Corporation (NYSE:
CMP) (CompCare(R)) today reported a loss of $1.0 million, or $0.34 loss per share, on
2.9 million weighted average shares outstanding for the second quarter of fiscal year 1997
ended November 30, 1996. This quarter's loss compares to a gain of $0.7 million, or
$0.27 earnings per share, on 2.6 million weighted average shares outstanding for the
second quarter of FY 1996, which included a non-recurring $1.0 million gain on the sale
of one of the company's freestanding hospital facilities. Revenues for this quarter
increased $2.1 million, or 28% to $9.7 million from $7.6 million in the same quarter last
year. Costs and expenses as a percentage of total operating revenues decreased 22% this
quarter compared to the same quarter last year. For the quarter, managed care revenues as
a percentage of total operating revenues increased to 64%, compared to 42% for the same
period last year as a result of the expansion of existing contracts and addition of managed
care contracts in Texas and Florida.

Chriss W. Street, chairman and chief executive officer of CompCare, stated, "We are very
pleased that we have completed our global restructuring plan and have dramatically
increased our managed care business. With the completion of the exchange offer, we can
now focus on further developing our managed care strategy."

On December 30, 1996, CompCare successfully completed an exchange offer for 72% of
its $9.5 million in 7 1/2% convertible subordinated debentures. This transaction was not
recorded in the financial statements for the second quarter; however, the exchange offer
eliminates 59% of the company's total debt and will be reflected in the third quarter of FY

This release contains statements that are forward-looking in nature that are subject to many
factors which can materially affect future results. These risks and uncertainties include but
are not limited to future funding needs, potential healthcare reform, the disposition of
assets, historical losses, the company's restructuring and other information detailed in the
company's Form 10-K filed with the Securities and Exchange Commission.

CompCare provides care and care coordination on a contractual or at-risk (managed care)
basis of chronic and catastrophic diseases to HMOs, hospitals, the government and
corporations throughout the United States and its protectorates through its Disease State
Management(SM) products.

                   SUBSIDIARIES Condensed Consolidated
                   Statements of Operations
                   (Dollars in thousands, except per share

                                          Three Months Ended  
                                          Six Months Ended
                                             November 30,     
                                               November 30,
                                           1996       1995    
                                           1996      1995

         Revenues and gains:
          Operating revenues               $9,710    $7,605  
          $18,703   $16,380

         Costs and expenses
          Direct healthcare expenses        8,420     7,091   
          16,589    14,806 General and administrative
           expenses                         2,156     2,435   
            3,810     3,705
          Provision for doubtful accounts     154       389   
             201       669 Depreciation and amortization      
          176       335       338       683 Restructuring
          expenses              ---       ---       195      
                                           10,906    10,250   
                                           21,133    19,863

         Loss from operations             (1,196)   (2,645)  
         (2,430)   (3,483)
          Gain on sale of assets             (20)   (1,036)   
            (26)   (1,067) Loss on sale of assets             
           12       ---        12        31 Non-recurring loss
                           ---       ---       250       ---
          Interest income                   (105)      (54)   
           (150)      (64) Interest expense                   
          260       289       596       743

         Loss before income taxes         (1,343)   (1,844)  
         (3,112)   (3,126)

         Benefit for income taxes             344     2,562   
            345     2,536
          Net earnings/(loss)              $(999)      $718
          $(2,767)    $(590)

         Earnings/(loss) per share:
          Net earnings/(loss)             $(0.34)     $0.27  
          $(0.96)   $(0.22)

SOURCE Comprehensive Care /CONTACT: Chriss W. Street, Chairman & CEO of
Comprehensive Care, 800-678-2273; or Linda Staley, Account Principal of Coffin
Investor Relations, 818-789-0100/

Bradlees Announces a New Amendment to Its Debtor-In-Possession Financing Agreement

BRAINTREE, Mass., Jan. 14, 1997 - Bradlees, Inc. (NYSE: BLE) today announced that it
has requested and received an amendment to its $200 million Debtor-In-Possession
financing agreement (DIP). This amendment will provide the Company with amended
minimal earnings covenants for both year-end fiscal 1996 and the first quarter of fiscal
1997. The amendment is subject to approval of the US Bankruptcy Court.

This amendment will insure that Bradlees maintains an adequate lending facility while it
restructures. Bradlees' DIP facility expires in June of 1997 and the Company fully expects
to seek an extension of this facility during the first quarter of fiscal 1997.

Bradlees also announced today that it will request an extension of its period of exclusivity
at a bankruptcy court hearing scheduled for January 21, 1997. The current period of
exclusivity expires on February 1, 1997. The Company expects this request will be
supported by most or all of its creditor constituencies.

Commenting on today's announcement, Peter Thorner, Bradlees' new chairman and chief
executive officer said, "We are very pleased by the support of our DIP lenders in granting
this amendment to our facility. Over the past few months we have taken strong actions to
shape Bradlees into a viable, more efficient company. However, this amendment was
necessitated by our disappointing operating results in 1996. We also anticipate that this
action will be favorably received by our suppliers and will result in the continuation of
our strong trade support."

Thorner added, "We are very confident that we will receive approval for extending our
period of exclusivity and that we can initiate a turnaround at Bradlees that will ultimately
restore the company to profitability."

Bradlees, Inc. operates 110 discount department stores in Maine, New Hampshire,
Massachusetts, Connecticut, New York, New Jersey and Pennsylvania. Bradlees' common
stock is listed and traded on the New York Stock Exchange under the symbol "BLE." For
additional Bradlees' press releases, please call 1-800-758-5804, ext. 105750.

SOURCE Bradlees, Inc. /CONTACT: Coleman Nee of Rasky & Co., 617-742-7077/

Barry's Jewelers reports fiscal 1997 second quarter results, announces expense and debt
reduction plan

MONROVIA, Calif.--Jan. 14, 1997--Barry's Jewelers Inc. (NASDAQ/NM:BARY), in
reporting results for its fiscal 1997 second quarter ended Nov. 30, 1996, announced a
series of cost and debt reduction initiatives in a restructuring plan designed to improve the
company's financial position and competitive profile.

For the quarter, net sales were $29.3 million compared with $33.1 million in the second
quarter of last year. Comparable store sales were 14.9 percent less than the same quarter a
year ago. The net loss for the quarter was $6.7 million, or $1.66 per share, vs. $447,000,
or 11 cents per share, in the same period of fiscal 1996.

For the first six months of fiscal 1997, net sales decreased to $55.4 million from $59.9
million in the same period a year ago. Comparable store sales for the fiscal 1997 period
decreased 10.7 percent over the first six months of fiscal 1996. The net loss for the fiscal
1997 six-month period was $12.4 million, or $3.10 per share, compared with a net loss of
$1.45 million, or 36 cents per share, a year ago.

Barry's reported that total sales for the month of December 1996 decreased 5.6 percent
from the prior December. Comparable store sales decreased 10.4 percent over the same
month. The company's 20 recently converted superstores and the 17 new stores it opened
in fiscal 1997 performed very well.

The poor performance for the second quarter and the six months was primarily due to sales
and gross margin shortfalls relative to last year. The main causes for the sales shortfalls
were tighter credit standards imposed by the company to improve longer-term results of
operations, lower-than-expected average unit sales, and an inventory imbalance.

The margin shortfalls were caused principally by the sales mix of promotionally priced
merchandise and a competitive discounting environment. Expenses increased over last
year due to the opening of 17 new stores during the first and second quarters of fiscal
1997; higher professional expenses; and accelerated write-offs of debt costs as a result of
the company's refinancing activities.

Importantly, Barry's announced that it will implement company-wide restructuring
initiatives beginning during the third and fourth fiscal quarters to reduce operating and
administrative costs and debt. These include declining to renew leases on 12 stores and
closing 18 to 24 additional stores.

Concurrent reductions in overhead at the company's remaining stores and reductions in
corporate expenses are expected to result in significant savings. These changes will
require one-time charges to third quarter results of operations between $10 million and
$14 million. These charges include, but are not limited to, mall store rent settlements,
leasehold improvements, and anticipated bad debt write-offs from these closed stores.

Except for mall store rent settlements, the charges are non-cash in nature. The restructuring
is expected to be substantially completed by the end of the fiscal year ending May 31,

Robert W. Bridel, president and chief executive officer of Barry's Jewelers, said, "All of
these actions are targeted at repositioning the company to become profitable in fiscal
1998. We are implementing an aggressive new merchandising and marketing plan," he

"We are also completing an upgrade to our management information systems, including a
new point-of-sale system and a new merchandise planning system. Completion is planned
for the summer of 1997. We expect the benefits to be significant and far-reaching.

"This plan positions Barry's with a very strong store base, excellent employees, and a
management team committed to profitability in fiscal 1998," Bridel said.

Barry's Jewelers, one of the nation's largest independent retailers of fine jewelry, operates
retail jewelry stores in 18 states throughout the country, primarily in California, Texas,
Arizona, North and South Carolina, Utah, Montana, Colorado, Ohio and Indiana. "Safe
Harbor" Statement under the Private securities Litigation Reform Act of 1995: The
statements contained in this release that are not historical facts include those that may be
considered forward-looking statements and that involve a number of known and unknown
risks and uncertainties that could cause actual results to differ materially from those

Such risks and uncertainties include, among others, general economic conditions,
especially as such conditions impact retail sales in general and sales in the retail credit
jewelry market in particular; bad debt experience, which is also impacted by general
economic conditions; the transition to value pricing as the company's principal marketing
strategy; and the ability of the company to continue to successfully transition stores to the
"superstore" format.

For additional details concerning those markets and other risks and uncertainties, refer to
the company's annual report on Form 10-K for the fiscal year ended May 31, 1996.


                             BARRY'S JEWELERS INC.
                             Financial Highlights
                     (Unaudited, in 000s except share data)

                               Three months ended     Six
                               months ended
                                    Nov. 30,              
                                    Nov. 30,
                                1996       1995        1996   

        Net sales                $ 29,348   $ 33,124    $
        55,449   $ 59,864 Operating (loss) income    (3,396)  
          1,974      (5,655)     2,956 Loss before taxes and
         extraordinary item        (6,655)      (745)   
         (11,526)    (2,421)
        Income taxes                   --       (298)        
        --       (968) Loss before
         extraordinary item        (6,655)      (447)   
         (11,526)    (1,453)
        Extraordinary item             --         --        
        876         -- Net loss                 $ (6,655)  $  
        (447)   $(12,402)  $ (1,453) Net loss per share
         before extraordinary
         item                    $  (1.66)  $  (0.11)   $
         (2.88)  $  (0.36)
        Extraordinary item             --         --    $
        (0.22)        -- Net loss per share       $  (1.66)  $
         (0.11)   $  (3.10)  $  (0.36) Weighted average common
         shares outstanding     3,999,416  3,968,975  
         3,999,416  3,968,975


CONTACT: Barry's Jewelers Inc., Monrovia Robert W. Bridel/Thomas S. Liston,
818/303-4741 or Silverman Heller Associates, Los Angeles Eugene G. Heller,