InterNet Bankruptcy Library - News for February 18, 1997

Bankruptcy News For February 18, 1997

  1. Global Casinos Inc. reports record second- quarter results


  3. Nahant Man Convicted Of Bankruptcy Fraud, Announces US Attorney


  5. Centennial announces preliminary results of Special Review; company names interim CEO, CFO

Global Casinos Inc. reports record second- quarter results

DENVER, CO--Feb. 18, 1997--Global Casinos Inc. (NASDAQ:GBCS) today announced its second-quarter results for the period ending  
Dec. 31, 1996.

For the three months ended Dec. 31, 1996, the company reported record net revenues of $2,521,853, compared to net revenues of  
$2,021,724 for the same period in 1995, an increase of $500,129, or 24.7 percent. For the quarter ended Dec. 31, 1996, the company  
reported income from operations of $122,933 after a charge of $227,343 for depreciation and amortization, compared to income from  
operations of $6,089, which includes $199,880 of depreciation for the same period in 1995. For the quarter ended Dec. 31, 1996, the  
company reported net income of $1,470,653, after a one-time net loss from reorganization of $(239), a minority interest of $(46,362), and a  
gain from debt restructuring of $1,450,392. This compares to net income of $6,745 after a gain from debt restructuring of $201,814, and  
minority interest of $(108,756) for the same period in 1995.

                             Three Months Ended     Six Months Ended

                                  Dec. 31,               Dec. 31,
                              1996        1995       1996        1995

        Net Revenues           $2,521,853  $2,021,724 $4,347,193  $3,728,145

        Operating, General, and
          Administrative        2,171,577   1,815,755  3,960,413   3,387,567
        Depreciation and  
          Amortization            227,343     199,880    435,884     391,815
        Income (Loss) From
          Operations              122,933       6,089    (49,104)
        Other Income (Expense)    (56,071)    (92,402)  (143,372)
        Income (Loss) Before
          Extraordinary and
          Minority Interest        66,862     (86,313)  (192,476)
        Net Reorganization           (239)                (3,503)
        Gain Debt Restructuring 1,450,392     201,814  1,450,392     201,814
        Minority Interest         (46,362)   (108,756)  (101,235)
        Net Income (Loss)       1,470,653       6,745  1,153,178
        Net Income (Loss) per
          Share                $     1.12  $     0.00 $     0.88  $
        Weighted Average Number
          of Shares Outstanding 1,314,801   1,034,662  1,306,525   1,004,051
          (Restated to reflect
          1-for-10 reverse split
          of stock effected  
          Nov. 18, 1996)

                                              Condensed Balance Sheet

                                           Dec. 31, 1996   June 30, 1996

        Current Assets                           $2,047,354     $1,067,962

        Note Receivable Subject to
          Cancellation due to Chapter 11
          Bankruptcy                                     --      1,217,588
        Net Land, Buildings and Equipment         5,609,133      5,323,286
        Net Other Assets                          3,116,001      2,978,776
        Total Assets                            $10,772,488    $10,587,612
        Current Liabilities                     $ 3,082,212    $ 2,890,708
        Liabilities Subject to Compromise                --      5,085,705
        Net Long-Term Debt                        3,852,892         52,266
        Total Liabilities                         6,935,104      8,028,679
        Minority Interest                            33,963         17,969
        Total Stockholders' Equity                3,803,421      2,540,964
        Total Liabilities and Stockholders'  
          Equity                                $10,772,488    $10,587,612

Stephen Calandrella, interim president of Global Casinos Inc., stated: "We are pleased that our financial statements have begun to reflect the  
positive operational performance of our casino properties. During the quarter ended December 1996, Global's net operating cash flow was  
in excess of $350,000, a very encouraging trend as we enter our third quarter, which historically has been Global's strongest operating  

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



NEW YORK, NY --Feb. 18, 1997--The County Seat Official Committee of Unsecured Creditors announced today that it has rejected as  
grossly inadequate a revised proposal by Wet Seal to acquire County Seat's stores. Noting that rumors in the marketplace concerning the  
proposal may be undermining the Company's restructuring, the Committee has terminated discussions with Wet Seal and requested that Wet  
Seal cease and desist from all efforts to pursue County Seat. The Committee expressed its firm support for the programs initiated by Sam  
Forman and his management team to turn around County Seat's business and implement a timely and successful reorganization.

The Committee is the court-appointed representative of County Seat's unsecured creditors in the Company's chapter 11 bankruptcy case,  
which is pending in the United States Bankruptcy Court for the District of Delaware.

Separately, County Seat said it is making substantial progress as it moves forward with implementation of its restructuring.

CONTACT: Chaim J. Fortgang, Committee Counsel 212/403-1247

Nahant Man Convicted Of Bankruptcy Fraud, Announces US Attorney

BOSTON, MA - Feb. 18, 1997 - A Nahant, Massachusetts man was found guilty today by a federal jury of having knowingly and  
fraudulently made false statements in his bankruptcy schedules and statement of financial affairs.

United States Attorney Donald K. Stern stated that ROBERT J. ROWE, 48, of 14 Fenno Way, Nahant, Massachusetts, was convicted today  
of two counts of bankruptcy fraud. The evidence presented during the nine day trial before United States District Judge Robert J. Keeton  
showed that ROWE made false statements under penalty of perjury in his bankruptcy schedules concerning his ownership interest in real  
estate located at 20 Highland Avenue in Nahant, and concerning the rent he claimed he was paying for his personal residence. The jury  
acquitted Rowe of one count of concealing his ownership interest in the now-defunct real estate construction and sales business called  
Elegant Design, Inc. The jury also acquitted Ronald Rowe, Rowe's brother, of charges of concealing an ownership interest in Elegant  
Design, Inc. in his bankruptcy, and making a false statement under penalty of perjury.

Rowe faces five years in prison, a $250,000 fine, a $100 special assessment and three years of supervised release on each count. Judge  
Keeton scheduled sentencing for April 25, 1997.

The case was investigated by the Federal Bureau of Investigation, referred by the U.S. Trustee's Office in Boston, and is being prosecuted by  
Assistant U.S. Attorney Mark J. Balthazard of Stern's Economic Crimes Unit.

SOURCE U.S. Attorney's Office  /CONTACT: Amy Rindskopf or Joy Fallon of US Attorney's Office, 617-223-9445/


Minneapolis, MN - February 18, 1997 - Grand Casinos, Inc. (NYSE:GND) today announced that for the year ended December 29, 1996, net  
revenues totaled $490.0 million, compared with $372.9 million a year ago, a 31 percent increase. EBITDA (earnings before interest, taxes,  
depreciation, and amortization) for 1996 was $142.9 million, two percent higher than $140.2 million in the prior year. A loss per common  
share of $2.43 for 1996 is compared with earnings per share before extraordinary charge of $1.98 for 1995.

Net earnings for the year reflect a write-down charge of $3.59 per share, or $149.2 million for Grand Casinos' investments in Stratosphere  
. Net earnings from operations, after the effect of pre-opening expenses, additional shares issued for mergers completed in 1995,  
and Grand Casinos' 42 percent share of operating losses from Stratosphere Corporation, were $0.89 and within expected ranges. The  
earnings per share results are calculated based on an increase in the weighted average common shares and common stock equivalents  
outstanding to 41.6 million in 1996, compared with 35.5 million for 1995, a 17 percent increase.

Lyle Berman, Chairman of the Board and Chief Executive Officer of Grand Casinos, stated, "Initial disappointing results from our two  
projects that opened in 1996, Stratosphere and Grand Casino Tunica, overshadowed much of the progress that Grand Casinos made this past  
year. During 1996, we set several financial milestones including record net revenues and record EBITDA for the year. Management fee  
income from our four managed properties as well as revenues from our two Gulf Coast casino resorts were also company records in 1996."

Financial highlights for the fourth quarter of 1996 include net revenues of $126.5 million, 32 percent higher than the $95.6 million of revenue  
earned in the fourth quarter of 1995. EBITDA for fourth-quarter 1996 were $17.0 million, compared with $32.8 million in the prior year.  

-more- loss for the quarter was $141.5 million, or a loss of $3.39 per share, compared with a net loss of $1.8 million, or a loss of $0.05 per  
share, a year ago.

In addition to the Stratosphere write-down, earnings for the fourth quarter of 1996 were negatively impacted by net charges for corporate  
reorganization of $0.17 per share. The company believes that these fourth-quarter 1996 charges will contribute to building a solid foundation  
for the future.

Grand Casinos, Inc. has been a publicly traded company since 1991 and is listed on the New York Stock Exchange under the trading symbol  
GND. The company currently owns and operates the three largest casino hotel resorts in the state of Mississippi, manages two land-based  
casinos in Louisiana, and manages two casino hotel resorts in Minnesota.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included  
in this press release (as well as information included in oral statements or other written statements made or to be made by the Company)  
contains statements that are forward-looking, such as statements relating to plan for future expansion and other business development  
activities as well as other capital spending, financing sources and the effects of regulation (including gaming and tax regulation) and  
competition. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in  
the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the  
Company. These risks and uncertainties include, but are not limited to, those relating to development and construction activities, dependence  
on existing management, leverage and debt service (including sensitivity to fluctuations in the interest rates), domestic or global economic  
conditions, activities of competitors and the presence of new or additional competition, fluctuations and changes in customer preferences and  
attitudes, changes in federal or state tax laws of the administration of such laws and changes in gaming laws or regulations (including the  
legalization of gaming in certain jurisdictions). For more information, review the Company's filings with the Securities and Exchange  
Commission, including the Company's annual report on Form 10-K and certain registration statements of the Company.


Centennial announces preliminary results of Special Review; company names interim CEO, CFO

BILLERICA, Mass.--Feb. 18, 1997--Centennial Technologies, Inc. (NYSE:CTN) announced today that based on the preliminary results of a  
continuing special financial review being conducted by the Company and the Company's independent public accountants, the Company  
expects that it will restate its financial statements at least for fiscal 1996 (ending June 30, 1996) and the first quarter of fiscal 1997 (ending  
Sept. 30, 1996) and expects that it will revise previously announced results of the second quarter of fiscal 1997 (ending Dec. 31, 1996).

The restatement is expected to be material and to result in a loss for fiscal 1996 and the first and second quarters of 1997. The Company's  
financial statements and announced earnings for those periods should not be relied upon.

To date, the special review has focused primarily on year-end 1996 and 1997. Certain financial records of the Company appear to have been  
falsified and may affect the ability to determine the accuracy of financial statements.

The Company's lender has informed the Company that it is in default of covenants regarding the Company's revolving credit line. The lender  
has indicated any further loans will be made at its discretion. If financing were not to be available, the company might not have sufficient  
liquidity to meet its cash needs. The Company has agreed to provide its lender further information regarding the Company.

The Company understands that as many as 14 lawsuits have been filed against it on behalf of purchasers of Company securities during  
varying time periods, including Aug. 21, 1996 through Feb. 11, 1997. In addition, the Securities and Exchange Commission has indicated that  
it is investigating the Company.

New Senior Management

The Company also announced that it has hired an interim CEO and CFO. Lawrence J. Ramaekers of Boca Raton, Florida, has assumed the  
post of Chief Executive Officer and Eugene M. Bullis of West Newbury, Massachusetts has become Chief Financial Officer.

Ramaekers is a principal of the Southfield, Michigan firm of Jay Alix & Associates, a firm specializing in addressing financial and operating  
challenges of high profile companies and guiding their return to corporate health.

Ramaekers' most recent short-term positions include Vice Chairman of Ryder Truck Rental Systems, Inc. (1996-1997), CEO/COO of Color  
Tile, Inc. (1996), CEO of Family Restaurants, Inc. (1995), and President and COO of National Car Rental System, Inc. (1993- 1995). He has  
also been involved in turnaround consulting assignments to the Boards of Directors of Wang Laboratories, UNISYS, Norand and AM  

Bullis is also affiliated with Jay Alix & Associates. His 30- year career in finance and technology management includes serving as a partner  
in Ernst & Young, in senior financial positions with Wang Laboratories, and as a financial consultant with Eastman Kodak and NYNEX.

CONTACT: Centennial Technologies, Billerica Cheryl Byrne, 508/670-0646