SRG Announces Filing of Chapter 11 Petition By Its Retail Toy Store Operating Subsidiary and Sale of Toy Store
WESTPORT, Conn., Jan. 31, 1997 - Specialty Retail Group, Inc. (OTC: SRGC) announced that its Building Blocks, Inc.,
subsidiary, which is currently operating five retail toy stores, has filed a petition for relief under Chapter 11 of the U.S.
Bankruptcy Code. The Company has also sold its "Building Blocks" toy store franchising subsidiary, Building Blocks
Kevin R. Greene, Chairman of SRG, said "Our efforts to convert Building Blocks stores to franchises and to develop new
store franchises in sufficient numbers to enable us to continue with franchising of Building Blocks stores have not
succeeded. Therefore, we have taken these steps to create the best opportunity for Building Blocks to resolve its creditors'
claims and to stop the continuing losses from operations. We are hopeful that these steps will facilitate Specialty Retail
Group, Inc.'s efforts to attract an operating business with which to effectuate a business combination."
Mr. Greene cautioned that SRG has, and will continue to have, obligations substantially in excess of its very limited cash
resources. He noted that SRG has been receiving cash advances from a stockholder in order to meet its operating expenses
and has been obtaining forbearances from its principal creditors. Mr. Greene cautioned that there are no assurances as to the
time or extent that advances and/or forbearances will continue; that SRG has no understandings regarding a business
combination; and that any such combination may depend, among other things, upon its ability to settle its outstanding
SOURCE Specialty Retail Group, Inc. /CONTACT: Steven E. Glass of Specialty Retail Group, Inc., 203- 356-4380/
The Sands Regent Announces Appeal of Mississippi Court Judgment and Title 11 Filing by Subsidiary
RENO, Nev., Jan. 31, 1997 - The Sands Regent (Nasdaq: SNDS) announced today that an Appeal has been filed with the
Mississippi Supreme Court regarding the Harrison County, Mississippi Chancery Court judgment that requires certain
payments by Gulfside Casino Partnership, the legal entity operating the Copa Casino in Gulfport, Mississippi, to two former
shareholders of Gulfside Casino, Inc. ("GCI"), a corporation currently owned by the Company and a partner in the Gulfside
Casino Partnership. Subsequent to filing the Appeal, GCI filed for protection under Title 11 of the United States Code
(Chapter 11) in the Southern District of Mississippi, Southern Division.
The Company believes that these actions were necessary in order to protect GCI and because the Chancery Court's ruling is
incorrect and not supported by the facts or the law. Gulfside Casino Partnership, which owns and operates the Copa Casino,
and Patrician, Inc., the Managing Partner, are not included in the Chapter 11 filing.
The Sands Regent owns and operates the Sands Regency, a 1,000 room hotel/casino located in Reno, Nevada, and the Copa
Casino in Gulfport, Mississippi.
SOURCE The Sands Regent /CONTACT: David R. Wood, Executive Vice President and Chief Financial Officer of The
Sands Regent, 702-348-2298/
MOBILEMEDIA BANKRUPTCY NEWS: First Issue Free
PRINCETON, N.J., Jan. 31, 1997 - Bankruptcy Creditors' Service, Inc., today announced publication of MOBILEMEDIA
BANKRUPTCY NEWS. This new bankruptcy newsletter follows yesterday's announcement by MobileMedia Corporation
(Nasdaq: MBLM), MobileMedia Communications, Inc., and their affiliates that they have commenced a reorganization
under chapter 11 of the United States Bankruptcy Code.
"The first billion-dollar debtor of 1997 bites the dust," said Peter A. Chapman, President of Bankruptcy Creditors' Service,
Inc., and Editor of MOBILEMEDIA BANKRUPTCY NEWS, "and we're here to follow MobileMedia's attempts to
reorganize or liquidate under chapter 11.
"MOBILEMEDIA BANKRUPTCY NEWS - like our other case-specific bankruptcy newsletters - will provide on-going,
in-depth news and reporting about the chapter 11 reorganization undertaken by MobileMedia."
Chapman explains that attorneys, large creditors, and investors involved in chapter 11 bankruptcy cases the size of
MobileMedia's case find BCSI's case-specific newsletters to be an invaluable resource to help wade through the mountains
of paper that are filed with the Bankruptcy Court and long hours of court hearings.
Today's first issue of MOBILEMEDIA BANKRUPTCY NEWS includes: (i) background information about MobileMedia
and the wireless paging industry; (ii) detailed information extracted from MobileMedia's 19 chapter 11 bankruptcy
petitions; (iii) a list of MobileMedia's 20 largest unsecured creditors; and (iv) a calendar of the key dates and deadlines
related to MobileMedia's chapter 11 cases.
Chapman said that next week's issue will provide subscribers with a detailed look at (a) MobileMedia's $200,000,000 DIP
financing facility with Chase Manhattan Bank, (b) the handfuls of first-day motions brought before Judge Walsh to keep
MobileMedia's businesses operating without interruption, and (c) the professionals that will push and pull MobileMedia
through chapter 11.
MOBILEMEDIA BANKRUPTCY NEWS is distributed on a subscription basis by e-mail or fax for $50 per issue. Delivery
is free by e- mail; nominal fax charges apply. New issues are published as significant activity occurs (generally every 10 to
20 days) in the MobileMedia cases.
Chapman stated that one copy of the first issue of MOBILEMEDIA BANKRUPTCY NEWS is available at no charge upon
request. Chapman further advised that individuals with access to the Internet can obtain copies of the first issue of
MOBILEMEDIA BANKRUPTCY NEWS (in Microsoft Word 6.0 format) at
http://bankrupt.com/chap11.mobilemedia.htmlor ftp://bankrupt.com/Bankruptcy News/MobileMedia/ from the
InterNet Bankruptcy Library.
SOURCE Bankruptcy Creditors' Service, Inc. /CONTACT: Peter A. Chapman of Bankruptcy Creditors' Service,
609-392-0900, Telecopier, 609-392-0040, or firstname.lastname@example.org/
Work Recovery Announces 2nd Quarter Results
TUCSON, Ariz., Jan. 31, 1997 - Work Recovery Inc. announced its financial results for the second quarter today. The
Company posted a loss of $452,000 and a net loss after reorganization items of $6,815,000. Reorganization items are costs
directly related to the Company's bankruptcy reorganization proceedings and include settlements between the Company and
various claimants. The loss per share before reorganization items was $.01 per share compared with a loss of $.03 the
Revenue increases included the sale of ERGOS(R) systems to a Las Vegas physicians' group, the first systems installed in
Nevada. The Company also sold an ERGOS(R) system to the BMW manufacturing facility in Spartanburg, South Carolina.
Other automotive manufacturers that use the ERGOS(R) in their U.S. plant are Toyota and Nissan.
Dorcas R. Hardy, Acting President and Chief Executive Officer, stated, "Though we are behind on our sales projections, we
expect that our emergence from Chapter 11, scheduled for February 1, 1997, will set us on the road to success."
Work Recovery, Inc. manufactures and markets its proprietary and objective Functional Capacity Evaluation technology,
ERGOS(R), which evaluates an individual's capacity to perform work.
SOURCE Work Recovery Inc. /CONTACT: Jodi Stefaniak, Work Recovery Inc., 520-322-6634/
The Claridge Announces it Will not Make Interest Payment On February 1, 1997,and That it is in Negotiations With Hilton
ATLANTIC CITY, N.J., Jan. 31, 1997 - The Claridge Hotel and Casino Corporation announced today that it will not pay
the interest payment due on February 3, 1997, on its 11-3/4% First Mortgage Notes due 2002.
The failure to make this payment will constitute a Default under the Indenture pursuant to which the Notes were issued, and
the default will become an Event of Default if the payment is not made within 30 days thereafter. Currently, the Corporation
believes it is highly unlikely that it will make the payment within the 30-day period.
As previously announced, the Claridge is in the process of formulating a prepackaged plan of reorganization. The
Corporation expects to commence soliciting approval of such a plan from the holders of the Notes within the next several
weeks. If such solicitation is successful, the plan would be submitted to a bankruptcy court as part of a voluntary bankruptcy
proceeding by the Corporation under Chapter 11 of the Bankruptcy Code.
The Corporation also confirmed today that it is engaged in negotiations with Hilton Hotels Corporation regarding
acquisition of the Corporation by Hilton through a prepackaged bankruptcy plan. In such a plan, Hilton would acquire all of
the stock in the Corporation in exchange for Hilton's funding a cash distribution under the plan to the holders of the
As the cash payment would not fully satisfy the Corporation's obligations to the holders of the Notes, any such acquisition
would be subject to approval of the holders in a bankruptcy proceeding. Hilton, through a company representative, has
indicated that it currently holds approximately 35-40% of Claridge's outstanding Notes.
Robert M. Renneisen, Jr., President and Chief Executive Officer of The Claridge Hotel and Casino Corporation, said,
"Hilton's representatives are speaking with our financial advisor, Dillon, Read & Co. Inc., and, although negotiations are
proceeding, there can be no assurance at this time that a satisfactory agreement will be concluded."
The Claridge Hotel and Casino Corporation, through its subsidiary, The Claridge at Park Place, Incorporated, operates the
Claridge Casino Hotel in Atlantic City. The casino hotel opened in July 1981 and has 59,000 square feet of casino gaming
space. The Claridge Hotel and Casino Corporation is a closely held public corporation. Its Corporate Bonds are publicly
traded on the New York Stock Exchange under the symbol CLAR02.
SOURCE Claridge Hotel and Casino Corporation /CONTACT: Glenn Lillie, Robert Renneisen or Ray Spera of Claridge
Hotel and Casino, 609-340-3501, or fax, 609-340-3589/