TCR_Public/970127.MBX




InterNet Bankruptcy Library - News for January 27, 1997






Bankruptcy News For January 27, 1997



  1. Corning Incorporated Reports Fourth Quarter and Full Year 1996 Results

  2. Anacomp Announces Date of Senior Debt Refinancing and Redemption of Outstanding Senior Notes

  3. Court Confirms Smith Corona Reorganization Plan; Smith Corona to Emerge From Chapter 11

  4. SLM International's Plan of Reorganization Confirmed




Corning Incorporated Reports Fourth Quarter and Full Year 1996 Results


CORNING, N.Y.--Jan. 27, 1997-- Performance in Line with Expectations; On Track for Growth in Core Operations and
Developing Businesses Corning Incorporated (NYSE:GLW) said today that net income from continuing operations for its
fourth quarter ended Dec. 31, 1996, totaled $91.3 million, an increase of 28 percent compared with adjusted 1995 fourth
quarter net income from continuing operations of $71.5 million. Fourth quarter earnings per share from continuing
operations totaled $0.40, an increase of 29 percent compared with 1995.


Adjustments to fourth quarter 1995 results relate to the change to Corning's accounting calendar which became effective
January 1, 1996.


For the full year 1996, Corning reported net income from continuing operations of $342.9 million, or $1.50 per share,
compared with a net loss of $71.5 million, or $0.32 per share, in 1995. Excluding restructuring charges and the impact of
fully reserving our investment in Dow Corning Corporation in 1995, Corning's 1996 net income and earnings per share from
continuing operations increased 16 percent over 1995.


Sales from Corning's continuing operations for the fourth quarter 1996 were $990.1 million, an increase of 16 percent over
adjusted 1995 levels. For 1996, sales from continuing operations were $3.7 billion, an increase of 12 percent compared
with 1995 sales of $3.3 billion.


Equity company results increased 80 percent in the fourth quarter compared with adjusted 1995 results and for the full year
rose 28 percent due to excellent results in the international optical fiber equity companies; EuroKera, a specialty glass
equity venture with St. Gobain; and Samsung-Corning Company Ltd. in South Korea.


Corning Board Chairman and Chief Executive Officer Roger G. Ackerman indicated that sales and earnings increases in the
fourth quarter and full year were attributable to strong performance in most core businesses.


"We're especially pleased with the performance of the optical fiber and optical cable businesses, where demand is strong
due to fiber hungry global markets, and with the emergence of opto- electronic components as a strong contributor.


"We also enjoyed very strong performance in environmental products, both in terms of market penetration and manufacturing
productivity," continued Mr. Ackerman. "Growth at Corning Costar resumed nicely for products for pharmaceutical
research and demand increased significantly for high-purity fused silica glass for semiconductors. In addition, profitability
improved substantially for consumer products and glass laboratory products due to ongoing cost reduction programs.


"Results from our television products businesses, however, were below the previous year due to significant expansion
related spending and a temporary softness in market demand; and Quanterra, our environmental services company, continues
to struggle in a difficult industry."


"The year ahead will see a number of growth initiatives," said Mr. Ackerman. "We are further expanding our reach in
telecommunications beyond fiber and cable by developing new opportunities to be the supplier of choice for high-reliability
passive optical components. Our liquid crystal display glass business, geared today for the lap-top computer market, is
making breakthrough advances in manufacturing technology which resulted in improved results in the second half of 1996.
We are also doubling our manufacturing capacity to supply high-purity fused silica glass, a key component for the next
generation of semiconductor equipment.


"Corning enters 1997 as a fundamentally changed organization now that the spin off of the Health Care Services segment is
complete; a newly aligned management team is in place; and our strategy is clear.


"We are focused on attractive international markets where we can apply our materials and process technology leadership to
generate superior growth in our communications, environmental and advanced materials businesses. We continue to build on
our leadership in glass, ceramics and photonics; we are extending our capabilities in polymers and surfaces; and, as always,
in keeping with our history, we endeavor to create entirely new technologies," concluded Mr. Ackerman.


At year end, Corning completed the spin-off of its Health Care Services segment creating two independent companies:
Covance Inc. (NYSE:CVD) and Quest Diagnostics Incorporated (NYSE:DGX). In connection with the spin-off, Corning
recognized a fourth-quarter loss from discontinued operations of $4.7 million, or $0.02 per share, due to the final accounting
for estimates recorded in the second quarter of 1996. Including the loss from discontinued operations, Corning recorded net
income of $86.6, or $0.38 per share, in the fourth quarter; and net income of $175.6 million, or $0.76 per share, in 1996.


Established in 1851, Corning Incorporated creates leading-edge technologies for the fastest growing segments of the world's
economy. For communications and communications-related industries, Corning manufactures optical fiber, cable and
components, high- performance glass and components for televisions, and other electronic displays and equipment;
advanced materials for scientific, and environmental markets; and consumer products.


                 Corning Incorporated and Subsidiary Companies
                       Consolidated Statements of Income
                     (In millions, except per-share amounts)
                                                   Three      
                                                    Twelve
                    Year Ended   Year Ended    Months Ended  
                    Weeks Ended
                     December 31, December 31,  December 31,
                     December 31,
                          1996         1995         1996      
                             1995
                                                         (unau
                                                         dited
                                                         )
        Revenues
          Net sales         $  3,651.6      $3,257.1     $  
          990.1
        $814.5

        Royalty, interest, 
         and dividend
          income                  32.9          30.6          
           8.9
        7.7
                           3,684.5       3,287.7         
                           999.0     822.2
        Deductions
         Cost of sales         2,258.9       2,032.6         
         622.0
        520.4
         Selling, general
          and administrative
           expenses              639.8         556.2         
           169.7
        142.4
         Research and
          development
           expenses              191.3         175.7          
           53.8
        45.3
         Provision for
          restructuring
           and other
        special charges                     26.5
         Interest expense         69.1          69.3          
         15.3
        16.5
         Other, net               38.1          21.3          
         18.4
        3.6

        Income from continuing 
         operations before
          taxes on income        487.3         406.1         
          119.8
        94.0
        Taxes on income from
         continuing operations   163.2         118.2          
         40.1
        25.3

        Income from continuing 
         operations before
          minority interest
           and equity earnings   324.1         287.9          
           79.7
        68.7
        Minority interest in
         earnings of subsidiaries(52.6)        (64.4)        
         (11.6)
        (13.0)
        Dividends on convertible
         preferred securities
          of subsidiary          (13.7)        (13.7)         
          (3.4)
        (3.2)
        Equity in earnings
         (losses) of associated
          companies:
        Other than Dow Corning
         Corporation              85.1          66.7          
         26.6
        17.8

        Dow Corning Corporation  ________     (348.0)      
        _______ _______ Income (loss) from
         continuing operations   342.9         (71.5)         
         91.3
        70.3
        Income (loss) from
         discontinued operations,
          net of income taxes   (167.3)         20.7          
          (4.7)
        13.2

          Net Income (Loss)   $  175.6        $(50.8)       $ 
          86.6    $
        83.5

        Per Common Share:
          Continuing
           operations         $   1.50        $(0.32)       $
           0.40    $
        0.31
          Discontinued
           operations            (0.74)         0.09         
           (0.02)
        0.06
        Net Income (Loss)     $   0.76        $(0.23)       $
        0.38    $ 0.37

        Dividends Declared    $   0.72         $0.72        $ 
         0.18   $ 0.18

        Weighted Average 
         Shares Outstanding      227.1         226.6          
         225.9
        226.7

The accompanying notes are an integral part of these statements.


        Corning Incorporated and Subsidiary Companies
        Condensed Consolidated Balance Sheets
        (In millions)

                              December 31, 1996        
                              December 31, 1995

          Assets

        Current Assets
          Cash and short-term
           investments                   $  223.2             
            $  187.6
          Receivables, net                  566.3             
              479.5 Inventories                       498.5   
                        426.5 Deferred taxes on income and
        other current assets            130.7                 
        102.8
          Total current assets            1,418.7             
            1,196.4

        Investments                         337.2             
            364.9

        Plant and Equipment,  Net         1,977.7             
          1,599.6

        Goodwill and Other 
         Intangible Assets, Net             330.4             
             330.8

        Other Assets                        257.3             
            305.3

         Net Assets of Discontinued 
          Operations                    ________              
            1,664.7
                                    $ 4,321.3              $
                                    5,461.7

        Liabilities and Stockholders' Equity

        Current Liabilities
             Loans payable          $    53.9              $  
             143.1
           Accounts payable             268.9                 
           202.6
             Other accrued liabilities  484.7                 
             396.3
           Total current liabilities    807.5                 
           742.0

        Other Liabilities                   646.2             
            618.3 Loans Payable Beyond One Year     1,208.5   
                    1,340.0 Minority Interest in
         Subsidiary Companies               310.7             
             269.8
        Convertible Preferred
         Securities of Subsidiary           365.1             
             364.7
        Convertible Preferred Stock          22.2             
             23.9
          Common Stockholders' Equity       961.1             
            2,103.0
                                    $ 4,321.3             $
                                    5,461.7

The accompanying notes are an integral part of these statements.


Corning Incorporated and Subsidiary Companies Notes to Consolidated Financial Statements Quarter 4, 1996


(1) Earnings per common share are computed by dividing net income less dividends on Series B convertible preferred stock
by the weighted average number of common shares outstanding during the period. The weighted average shares outstanding
were 225.9 million and 227.1 million for the fourth quarter and year ended December 31, 1996 and 226.7 million and 226.6
million, respectively, for the same periods in 1995. Series B preferred dividends amounted to $0.4 million and $1.9 million
for the fourth quarter and year ended December 31, 1996 and $0.5 million and $2.0 million, respectively, for the same
periods in 1995.


(2) Depreciation and amortization charged to continuing operations during the years ended December 31, 1996 and 1995
totaled $288.1 million and $251.6 million, respectively.


(3) Corning's effective tax rate for continuing operations was 33.5% for the fourth quarter and year ended December 31,
1996 and 27% and 29%, respectively, for the same periods in 1995. The lower 1995 rate was due to a higher percentage of
Corning's earnings being from consolidated entities with lower effective tax rates and the second quarter 1995 restructuring
charge.


(4) Effective January 1, 1996, Corning made several changes to its accounting calendar to make Corning's results more
comparable with other companies and to enable Corning to report results of certain subsidiaries on a more current basis.


Fourth quarter 1995 financial statements were not restated for the calendar change. The following table presents unaudited
pro forma results for the fourth quarter 1995 as if this change had occurred at the beginning of 1995 (in millions, except per-
share amounts):


                                                Three
                                            Months Ended
                                          December 31, 1995

        Sales                                $    853.8

           Net income
        Continuing operations                $     71.5
        Discontinued operations                    12.5

        Net income                           $     84.0

           Net income per common share               
        Continuing operations                $     0.31
        Discontinued operations                    0.06

        Net income per common share          $     0.37

(5) On May 15, 1995, Dow Corning Corporation (a 50%- owned equity company) voluntarily filed for protection under
Chapter 11 of the United States Bankruptcy Code. As a result of this action, Corning recorded an after-tax charge of $365.5
million, or $1.62 per share, in the second quarter of 1995 to fully reserve its investment in Dow Corning Corporation.


Corning also discontinued recognition of equity earnings from Dow Corning Corporation beginning in the second quarter of
1995. Corning recognized equity earnings from Dow Corning Corporation of $17.5 million in the first quarter of 1995.


(6) In the second quarter of 1995, Corning recorded a restructuring charge in continuing operations totaling $26.5 million
($16.1 million after tax) or $0.07 per share.


(7) In May 1996, Corning's Board of Directors approved a plan to distribute to its shareholders on a pro rata basis all of the
shares of Quest Diagnostics Incorporated (formerly Corning Clinical Laboratories Inc.) and Covance Inc. (formerly Corning
Pharmaceutical Services, Inc.) (the Distributions). On December 31, 1996, Corning completed the Distributions. Prior to the
Distributions, Corning received a ruling from the Internal Revenue Service that the Distributions are tax-free to Corning and
its shareholders. As a result of the Distributions, Quest Diagnostics and Covance became independent publicly traded
companies. Corning's consolidated financial statements report these companies, which formerly comprised Corning's Health
Care Services segment, as discontinued operations.


During the fourth quarter, Corning recorded a loss in discontinued operations totaling $4.7 million after-tax related to the
final accounting for estimates recorded in the second quarter of 1996. The loss from discontinued operations for the year
ended 1996 totaled $167.3 million. It includes the $4.7 million fourth quarter after-tax charge discussed above, a $115
million after-tax charge recorded in the third quarter, a $56.8 million after- tax charge recorded in the second quarter offset
by $9.2 million of income recognized in the first quarter. The third quarter charge primarily related to a charge taken by
Quest Diagnostics to increase reserves related to government investigations of billing practices of certain clinical
laboratories acquired by Quest Diagnostics in 1993 and 1994. The second quarter charge includes the estimated costs
related to the Distributions and a charge to increase reserves for government claims, offset by the estimated results of
operations of the businesses to be distributed from April 1, 1996, through December 31, 1996. Corning has agreed to
indemnify Quest Diagnostics on an after-tax basis for the settlement of claims relating to billing practices of Quest
Diagnostics that were pending at December 31, 1996. Coincident with the Distributions, Corning recorded a payable to
Quest Diagnostics of approximately $25 million which is equal to management's best estimate of amounts which are
probable of being paid by Corning to Quest Diagnostics to satisfy the remaining indemnified claims on an after-tax basis.
Although management believes that established reserves for indemnified claims are sufficient, it is possible that additional
information may become available which may cause the final resolution of these matters to exceed established reserves by
an amount which could be material to Corning's results of operations and cash flow in the period in which such claims are
settled. Corning does not believe that these issues will have a material adverse impact on Corning's overall financial
condition.


CONTACT: Corning Incorporated Media Relations Contact: Kathryn C. Littleton (607) 974-8206 or Investor Relations
Contact: Richard B. Klein (607) 974-8313 Katherine M. Dietz (607) 974-8217




Anacomp Announces Date of Senior Debt Refinancing and Redemption of Outstanding Senior Notes


ATLANTA, GA - Jan. 27, 1997 - Anacomp, Inc. (Nasdaq: ANCO) today announced that it plans to redeem all of its
outstanding 11- 5/8% Senior Secured Notes due September 30, 1999 as part of a refinancing plan underwritten by Lehman
Brothers, Inc. The senior secured notes will be redeemed at 100% on February 28, 1997, the date set for the Lehman
Brothers refinancing.


The Bank of New York, the trustee for the senior secured notes, will act as paying agent.


The refinancing plan calls for a new $80 million senior debt facility that will replace Anacomp's existing senior secured
notes. The new debt facility will consist of $55 million in term loans and an available revolver of up to $25 million.


Anacomp's senior debt, which was approximately $120 million at the time of the company's emergence from Chapter 11 last
June, currently is approximately $97 million. Anacomp intends to pre-pay the next principal installment of approximately
$14.3 million on February 20, 1997, about six weeks ahead of schedule. On February 28, 1997, Anacomp will use
available cash and borrowings under the new senior debt facility to redeem the balance of the senior secured notes,
reducing the company's senior debt to $55 million in new term loans and leaving the $25 million revolver undrawn.


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


All of Anacomp's news releases are distributed through PR Newswire, an international wire service that can be accessed
through the Internet or numerous on-line providers. Recent news releases and quarterly reports are available through
Anacomp's Company News- On-Call service by calling 1-800-758-5804, ext. 054532.


SOURCE Anacomp, Inc.  /CONTACT: Media, Jeff Withem, 404-876-3361, or email, jwithemanacomp.com, or Analyst,
Nancy Vandeventer, 800-350-3044, or email, nvandeventeranacomp.com, both of Anacomp Inc./




Court Confirms Smith Corona Reorganization Plan; Smith Corona to Emerge From Chapter 11


CORTLAND, N.Y., Jan. 27, 1997 - Smith Corona Corporation (SCC) announced today that the U.S. Bankruptcy Court for
the District of Delaware confirmed the company's Plan of Reorganization, which describes the manner by which SCC will
restructure its debt and repay its creditors. The Court's acceptance of Smith Corona's plan signals that the company will be
ready to emerge from Chapter 11 protection when the plan goes into effect, as early as Feb. 7, 1997.


Confirmation of the Plan followed hearings to assure that all reorganization requirements had been met under the Bankruptcy
Code which included approval by the requisite majority of creditor classes.


Under the terms of the Plan, holders of allowed Class 8 general unsecured claims, estimated to ultimately total $33 million,
will receive pro rata cash distributions of a cash pool of $10.78 million, less Class 9 convenience claim payouts totalling
approximately $138,000. Convenience claims include allowed claims of $1,500 or less, which will pay 60 cents for each
dollar of allowed claim. The allowed Class 8 general unsecured claims include $9.85 million in claims of trade and other
creditors and an $8.3 million claim of the Pension Benefit Guaranty Corporation. An initial distribution will be made to
creditors shortly after the Plan becomes effective.


In papers filed with the Court, the company stated that it has reserved $14.85 million to accommodate certain unresolved
claims. This reserve amount is included in the $33 million estimate for Class 8 allowed claims. Class 8 creditors will also
receive 85 percent of the common stock in the reorganized company. Each holder will receive one share of common stock in
the reorganized company for each $10 in amount of allowed Class 8 claim held.


Current shareholders will be entitled to receive warrants equal to one warrant per 20 shares of existing common stock. The
company believes that the warrant exercise price will be $8.50, subject to review by the company's board of directors.
Under the terms of the Plan, warrants cannot be exercised until six months after the Plan becomes effective.


The company has applied for the trading symbol "SCCO" for its new common stock and for a listing on the NASDAQ
exchange, although no assurances can be given that such listing will be obtained. The company believes that market makers
will emerge to engage in stock trades.


According to Ronald F. Stengel, Smith Corona president and chief executive officer who has successfully directed the
company's reorganization, "when Smith Corona filed under Chapter 11 19 months ago, more than 100 articles appeared
decrying the death of the company. I am pleased to state that Smith Corona has survived and has positioned itself to compete
effectively in today's marketplace.


"In fact, the Smith Corona management team has successfully restructured the company's operations which will result in the
reorganized company emerging with a considerably strengthened balance sheet. Today Smith Corona employs more than
1,100 people worldwide who manufacture and market a refined line of electronic typewriters, word processors and related
office equipment. Under W. Michael Driscoll, Smith Corona's new chief executive officer, the company will complete the
implementation of its business plan, which calls for the procurement of new technologies and product lines to expand the
company's marketing reach in the office product category."


Mr. Stengel emphasized that "the Smith Corona reorganization could not have occurred without the hard work and
dedication of every Smith Corona employee. They are owed our sincere and heartfelt thanks for a job well done."


Smith Corona also announced a new seven-member board of directors, which will commence responsibilities once the
company emerges from Chapter 11. The new directors include: W. Michael Driscoll, president and chief executive officer
of the reorganized Smith Corona Corporation; Ronald F. Stengel, president of R.F. Stengel & Company, Inc., a crisis
management company; Peter Parts, chief executive officer of Peter Parts Electronics, Inc.; William J. Morgan, president of
Pacholder Associates, Inc., a national investment and financial advisory service firm; Jerome A. Colletti, president and
chief executive officer of The Alexander Group, a national marketing and sales management firm; Michael J. Murray, former
vice president of the U.S./Canadian Region for the Office Imaging Division of Eastman Kodak and architect of Kodak's
strategic entry into the copier marketplace; and Richard N. Rosett, dean of the College of Business, Rochester Institute of
Technology, and former dean of the Faculty of Arts and Sciences of Washington University and The Graduate School of
Business of the University of Chicago.


Smith Corona is a leading worldwide manufacturer and marketer of personal word processors, portable electronic
typewriters, and other products and accessories for use in the office, home and school. The company maintains headquarters
in Cortland, N.Y. and employs approximately 1,100 people worldwide.


Smith Corona filed under Chapter 11 of the U.S. Bankruptcy Code on July 5, 1995.


SOURCE Smith Corona Corporation  /CONTACT: Rivian Bell of Sitrick And Company, Inc., 310-788-2850 or 24-hour
pager, 800-686-1910/




SLM International's Plan of Reorganization Confirmed


MONTREAL, Canada - Jan. 27, 1997 - SLM International, Inc., a leading manufacturer of hockey products under the CCM
and Tacks brand names, announced today that its Plan of Reorganization was confirmed in Bankruptcy Court for the District
of Delaware. The Company expects the Plan, which was overwhelmingly approved by SLM's creditors, to become effective
within the next 30 days.


The plan provides for a significant de-leveraging of SLM's balance sheet, thus providing the Company's new management
team, led by Chief Executive Officer Gerald Wasserman, the flexibility to invest in the business and pursue the growth
opportunities currently available in the ice and roller hockey industries. As a result of the Plan of Reorganization, the
Company's new shareholders will consist primarily of Wellspring Associates L.L.C., a New York-based private investment
firm, and a group of insurance companies, including The Equitable Life Assurance Society of the United States, Phoenix
Home Life Mutual Insurance Company, The Northwestern Mutual Life Insurance Company and GE Capital Assurance
Company. The Company has received a firm commitment from Chase Manhattan Bank, N.A. with respect to its post-
reorganization financing.


Led by Mr. Wasserman, a completely new senior management team has been put in place and a new Board of Directors has
been designated. The new Board will be composed of Messrs. Paul M. Chute, Managing Director of Phoenix, Duff &
Phelps Corp.; Martin S. Davis, Managing Partner, and Douglas W. Rotatori, Principal, both of Wellspring Associates
L.L.C.; James C. Pendergast, Managing Director of Alliance Corporate Finance Group; and Gerald B. Wasserman,
Chairman, President and Chief Executive Officer of the Company.


Mr. Wasserman said: "CCM is the most widely recognized name in hockey, and both ice and roller hockey are two of the
fastest growing sports in North America and Europe. With our new management team and the strong support of our new
shareholders, the Company's potential to expand and significantly improve profitability is clear."


SLM International, Inc. designs, develops, manufactures and markets a broad range of ice and roller hockey and figure
skating products and sports apparel, primarily under the CCM, Tacks, M&K and .1 Apparel brand names.


SOURCE SLM International, Inc. /CONTACT: Gerald B. Wasserman of SLM International, 514-331-5150/