PacifiCorp Seeks to Preserve Big Rivers Partnership
LOUISVILLE, Ky., Feb. 27, 1997 - PacifiCorp (NYSE: PPW) took action today to halt a prolonged legal battle and
preserve the partnership which PacifiCorp and Big Rivers Electric Corporation have developed as a solution to the Kentucky
utility's financial problems.
PacifiCorp asked the U.S. District Court to take jurisdiction over the Big Rivers reorganization away from the U.S.
Bankruptcy Court. In addition, PacifiCorp filed motions in bankruptcy court requesting that Judge J. Wendell Roberts remove
himself and bankruptcy examiner J. Baxter Schilling from the case and impose sanctions on the examiner.
PacifiCorp said the auction process decreed by Judge Roberts last week was improper because Schilling had contacts with
the judge that are prohibited by federal bankruptcy court rules.
"The auction process was developed largely during ex parte contacts between the judge and the examiner that were substantial
and substantive," said Don Furman, president of PacifiCorp Power Marketing, Inc. "This has caused great harm to the efforts
of Big Rivers' major creditors and customers to resolve the financial challenges facing Big Rivers," Furman said.
Under federal bankruptcy court rules, any contacts on substantive matters with the judge follow a process under which all
interested parties, including the bankruptcy examiner, are advised of the contacts and given an opportunity to participate.
"Virtually all creditors had agreed to a settlement of the Big Rivers' bankruptcy when the judge reversed his stated desire to
see a negotiated resolution of the issues," Furman said.
"Our sole intent through these legal actions today is to preserve this fragile agreement so Big Rivers and PacifiCorp can move
forward in extending benefits of this partnership to the customers and creditors of Big Rivers," Furman said.
"Otherwise, it is clear that the Big Rivers case will be mired in a morass of litigation, unnecessarily prolonging for several years
a resolution process that already has stifled economic development in western Kentucky because of the uncertainty over Big
Rivers' rates and financial future," Furman said.
PacifiCorp was selected as Big Rivers partner following a lengthy competitive bid process that ended more than 14 months
ago. LG&E, which asked the judge for the auction process, was an unsuccessful bidder in the competition.
Big Rivers, with the concurrence of its major constituencies, recently rejected a new proposal from LG&E which purported to
be a better value than PacifiCorp's bid.
Furman said the judge's goal to eliminate controversy at the Kentucky Public Utilities Commission already has failed because
two other possible bidders, both of whom were invited to participate in the 1995 process, elected not to bid and filed
objections to the process. Judge Roberts required utilities participating in the auction process to agree not to challenge the
process before the KPUC.
The Big Rivers-PacifiCorp partnership provides for PacifiCorp to lease and operate Big Rivers generation facilities over the
next 25 years for an annual payment of $30.1 million. PacifiCorp will sell power back to Big Rivers for use by its four
distribution cooperative members and sell the surplus into the eastern wholesale power markets.
Furman noted that the partnership between Big Rivers and PacifiCorp already has produced significant benefits, including
bringing Big Rivers coal contracts to market, which is, by itself, a $165 million savings; reducing the Big Rivers work force by
11 percent; and increasing wholesale power sales under an interim marketing agreement.
PacifiCorp, based in Portland, Oregon, serves 1.3 million retail customers in the West and 550,000 retail customers in
Australia. It conducts wholesale power transactions with more than 100 utilities in North America.
SOURCE PacifiCorp /CONTACT: Dave Kvamme, media inquiries, 503-464-6272, or Scott Hibbs, investor inquiries,
503-731-2123, both of PacifiCorp/
Edison Brothers Files Plan Of Reorganization
ST. LOUIS, MO - Feb. 27, 1997 - Edison Brothers Stores Inc. (NYSE: EBS) today set the stage for emergence from
Chapter 11 by filing its plan of reorganization with the U.S. Bankruptcy Court in Wilmington, Del. Edison believes the essential
elements of the plan are acceptable to the Creditors' Committee.
"The plan we filed today will allow Edison to emerge from Chapter 11 as a stronger specialty retailer," said Alan Miller, the
company's chairman and president. "Edison has used the Chapter 11 process to stabilize its business and establish a solid
foundation on which to build the future."
Miller said implementation of the plan of reorganization would provide Edison with a capital structure to support its business
strategy. The plan offered would reduce Edison's long-term debt level and allow it to focus its financial resources on its
approximately 1,800 apparel and footwear stores, and catalog operations.
"Edison's employees have worked hard to get the company in shape to make this significant move in just 16 months," Miller
said. "If the process proceeds as we expect it to, Edison should emerge from Chapter 11 by mid- year."
Edison's plan of reorganization provides creditors with a combination of cash, new corporate debt, new Edison common stock
and other assets to satisfy the approximately $440 million in creditor claims.
The recovery by the creditors would include: - A cash payment of $119 million. - Ten-year, 11 percent unsecured notes with
a principal value of $100 million. The first three years of interest would be prefunded, with no scheduled principal payments
until maturity in 2007. - New Edison common stock, which would be issued at the time of emergence and replace all existing
shares. - Title to the companys headquarters building in downtown St. Louis, which Edison would continue to occupy under
the terms of a 10-year lease. - Excess cash of approximately $40 million from the company's overfunded pension plan. The
cash would be made available after vesting and providing an annuity option to all employees for pension benefits earned to
date and establishing a new overfunded pension plan for all employees to cover retirement benefits earned in the future.
Current shareholders would receive warrants, which would entitle them to buy up to 9 percent of the new stock at
pre-determined prices.
Edison Brothers expects to file its proposed disclosure statement with the bankruptcy court within 30 days. After the court
approves the disclosure statement, the company's creditors and shareholders will be asked to approve the plan. The company
then will move for confirmation of the plan by the bankruptcy court.
Edison's plan of reorganization reaffirms the company's commitment to remain in St. Louis, where it employs more than 800
people at its headquarters location. While the plan provides that title to the headquarters building would pass from Edison to
the creditors, the company would enter into a 10- year lease and continue to occupy the facility.
"Edison has called St. Louis home since 1929," Miller noted. "The 10-year lease on our headquarters building reflects our
intention to maintain a strong presence in downtown St. Louis and this region."
Edison Brothers filed under Chapter 11 on Nov. 3, 1995. Since that time, the company has implemented a series of aggressive
corporate- and store-level initiatives focused on streamlining store operations, upgrading the physical appearance of stores,
repositioning merchandise to better cater to customer fashion needs, improving merchandise planning and allocation, and
strengthening management for several of its apparel and footwear chains.
"Our short-term restructuring and repositioning strategy has re- energized the company, and resulted in improved sales trends,
higher margins and a stronger bottom line," Miller said. "We also have completed a strategic business plan outlining Edison's
sharper focus on the youth and special-size markets, which show favorable demographic and economic trends and fit well with
our existing store concepts."
Edison Brothers Stores Inc. operates JW/Jeans West, Coda, Oaktree, J. Riggings and REPP Ltd Big & Tall menswear
stores; REPP Ltd and Phoenix Big & Tall men's catalogs; 5-7-9 Shops junior apparel stores; Bakers, Leeds, Pricis and Wild
Pair footwear stores; and Shifty's and Terrasystems experimental concepts. With approximately 1,800 stores in the United
States and Canada, St. Louis-based Edison is one of the largest specialty retailers of footwear, apparel and accessories in
North America.
SOURCE Edison Brothers Stores Inc. /CONTACT: David B. Cooper, Jr., CFO, 314-331-6531 or Amy Calvin, Dir.
Comm., 314-331-6588, both of Edison Brothers Stores Inc./
Court Authorizes Use of Cash Collateral for Jayhawk Acceptance Corporation
DALLAS, TX - Feb. 27, 1997 - Jayhawk Acceptance Corporation (Nasdaq: JACCQ) today announced that the United
States Bankruptcy Court, in which its Chapter XI proceeding is pending, approved an order authorizing Jayhawk's continued
use of its primary lender's cash collateral through March 31, 1997 to pay for activities and expenses in a court approved
budget. The agreed order allows Jayhawk to continue funding its operations and purchases of installment sale contracts
through the end of March, while Jayhawk considers its alternatives and holds discussions with its present and potential lenders.
Jayhawk's medical finance subsidiary, which is not a party to the Chapter XI proceeding, is funding its operations and contract
purchases through other sources. Jayhawk also announced that it has accepted the resignation of Dick Hoffmann from the
positions of President, Chief Operating Officer and a director of Jayhawk.
Jayhawk Acceptance Corporation is a specialized financial services company headquartered in Dallas, Texas.
SOURCE Jayhawk Acceptance Corporation/CONTACT: Virginia L. Cleveland of Jayhawk Acceptance Corp.,
972-663-1238/
CHILDREN'S COMPREHENSIVE SERVICES ANNOUNCES DEFINITIVE AGREEMENT TO PURCHASE
ASSETS OF VENDELL HEALTHCARE, INC.
MURFREESBORO, Tenn.--Feb. 27, 1997--William J Ballard, Chairman and Chief Executive Officer of Children's
Comprehensive Services, Inc. ("CCS") (Nasdaq/NM: KIDS), today announced the signing of a definitive agreement to
purchase substantially all the assets and assume certain identified liabilities of Vendell Healthcare, Inc. and its consolidated
subsidiaries (collectively "Vendell"), for $20 million. The purchase price includes approximately $12 million in cash and $8
million in CCS common stock. CCS has also agreed to purchase for cash Vendell's net working capital, estimated to be
approximately $5 million at closing. The number of shares of CCS common stock issuable in the transaction will be based on a
45-day trading average prior to closing, subject, except under certain conditions, to a maximum of 761,905 shares and a
minimum of 470,588 shares.
Vendell, headquartered in Nashville, Tennessee, currently operates eight residential facilities and seventeen day treatment
facilities in seven states. Serving primarily children and adolescents, Vendell provides, among other services, behavioral health
care, residential treatment, partial day treatment, and intensive outpatient, alternative education and detention services.
Mr. Ballard commented, "This transaction is expected to add in excess of $40 million to CCS's revenues for fiscal 1998,
creating an organization with annual revenues approximating $80 million. The transaction is also expected to be immediately
accretive to earnings per share. The Vendell facilities will provide CCS with a presence in five new states, Arkansas,
Kentucky, Michigan, Montana and Utah and significantly strengthen CCS's position in two others, Florida and Texas.
"Although certain of CCS's and Vendell's services overlap, we will strengthen our continuum of services to at risk and troubled
children through the addition of more extensive behavioral health services. Perhaps equally important, we will gain access to
underutilized facilities which can serve as platforms to expand CCS's core business of education, treatment and juvenile justice.
Staff at these sites will provide us with established operations and an understanding of local markets and contacts within state
and local governments as well as commercial insurance and private payors. Such familiarity typically takes significant periods
of time to develop when initially entering a new state."
Vendell has agreed, in connection with the transaction, to file for bankruptcy in the United States Bankruptcy Court for the
Middle District of Tennessee. It is a condition to the closing of the transaction that the Bankruptcy Court approve the sale.
Consummation of this transaction is subject to a number of other conditions including, among other things, the consent of
various state regulatory authorities. CCS currently expects the transaction to close within 60 to 90 days.
This release contains certain forward-looking statements regarding the Vendell acquisition and its impact on CCS's operations
and financial results. Management wishes to caution the reader that actual events or results may differ materially from these
forward- looking statements, which involve risk and uncertainties. Such risks include, but are not limited to, the ability of CCS
to close the transaction, the timing of the closing, the ability of CCS to integrate and manage the operations of Vendell, and the
occurrence of unanticipated problems associated with Vendell's operations prior to, or after, closing. The reader is also
advised that management undertakes no obligation to publicly release any revision to any of these forward-looking statements
in order to reflect any events or circumstances occurring after the date of this release.
Children's Comprehensive Services provides, either directly or through management contracts, education and treatment
services for at risk and troubled youth. It currently offers these services through the operation and management of specialized
education programs and both open and secured residential treatment centers for local, state and federal government agencies
in Alabama, California, Florida, Louisiana, Tennessee and Texas.
CONTACT: Children's Comprehensive Services Inc., Murfreesboro Donald B. Whitfield, 615/896-3100
HemaSure Announces Plans to Exit Plasma Business; Reports Fourth Quarter Results and Debt Restructuring
MARLBOROUGH, Mass., Feb. 27, 1997 - HemaSure Inc. (Nasdaq: HMSR) today announced its intentions to exit the
plasma pharmaceuticals business and return its focus to the development of new and innovative technologies for the blood
banking market, including the commercialization of its LeukoNet(TM) and SteriPath(TM) technologies.
The Company will file today a Current Report on Form 8-K with the SEC with respect to its recent restructuring agreement
with Novo Nordisk from which HemaSure acquired its Danish plasma business. Pursuant to that agreement, approximately
$23 million of indebtedness owed to Novo Nordisk was restructured by way of the Company's issuance of a convertible
promissory note in the principal amount of $11.7 million (provided that up to approximately $3 million may be forgiven in
certain circumstances). The terms of the 5-year note include a 12 percent coupon and a conversion price of $10.50 per share,
a conversion premium of approximately 100 percent over the last reported sale price of HemaSure's common stock on the
Nasdaq-NMS on February 26, 1997. Each of HemaSure and Novo Nordisk has the option of forcing conversion of the
convertible note into HemaSure common stock in January, 1998.
The Company took a one-time charge of $15.2 million in the fourth quarter associated with the exit from the plasma business,
reporting a net loss for the three months ended December 31, 1996 of $30.4 million or $3.76 per share, compared to a loss
of $2.2 million or $0.27 per share for the fourth quarter of 1995. The loss for the year ended 1996 of $40.6 million or $5.03
per share compared to $7.5 million or $l.20 per share for the year ended 1995. The increase in net loss, is due principally to
losses and the one-time charge associated with the discontinued plasma operations, as well as increased research and
development activities on SteriPath and expenses associated with the commercialization of LeukoNet. The fourth quarter loss
from continuing operations, $6.4 million includes non-recurring charges of approximately $2.0 million associated with expenses
incurred in the failed acquisition of Pharmacia & Upjohn's plasma business.
"Our decision to exit the plasma pharmaceuticals business is based principally on Pharmacia & Upjohn's breach of an
agreement we believe we had to acquire their Kabi plasma business," comments Steven H. Roundeh, President and CEO of
HemaSure. "We are currently evaluating preliminary indications of interest for our Copenhagen facility as well as other
approaches to exiting the business. We are also actively pursuing our legal claims and seeking damages from Pharmacia &
Upjohn, as previously disclosed.
"We believe that HemaSure is well positioned to expand on its core strategy and expertise, including the development and
in-licensing of new technologies that address the large, unmet safety needs in the blood banking industry," continued Mr.
Rouhandeh. "Our strategic relationships with leading blood banking organizations, including the American Red Cross, helps us
to identify new product opportunities in this important field. The new management team continues to be enthusiastic about the
prospects of our LeukoNet filter system, and about SteriPath, our system in development for pathogen inactivating red cells."
"The decrease in sales of LeukoNet in the fourth quarter was a result of our taking additional steps to meet the needs of our
current LeukoNet customers," remarked Mr. Edward Kelly, Executive Vice President and Chief Operating Officer. "We
spent additional time and resources to optimize the performance of the LeukoNet filter in response to new proposed industry
standards regarding red cell recovery, and are encouraged by orders received in early 1997."
HemaSure Inc. develops and delivers innovative separations and pathogen inactivation technologies designed to set standards
of safety for processing blood components worldwide.
Any statements contained herein that are not historical facts are forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Information on potential factors which could
affect the Company's actual results or operations are included in its filing with the Securities and Exchange Commission,
including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 1995, its Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 1996, and its Annual Report on Form 10-K for the fiscal
year ended December 31, 1996 (which the Company intends to file by the end of March).
LeukoNet(TM) and SteriPath(TM) are trademarks of HemaSure, Inc.
HEMASURE INC.
Consolidated Statements of Operations
For The Three and Twelve Month Periods ended
December 31, 1996 and 1995
(In thousands, except per share amounts)
Three-month periods Twelve-
month periods
ended December 31, ended
December 31,
1996 1995 1996 1995
Revenues:
Product sales $158 $ 15 $725 $534
Collaborative research
and development -- 114 54 300
Total revenues 158 129 779 834
Costs and expenses:
Cost of products sold 1,416 386 3,785 1,073
Research & development 1,919 1,140 6,169 4,344
Selling, general and
administrative 3,271 1,415 8,069 3,881
Total costs and expenses 6,606 2,941 18,023 9,298
Loss from operations (6,448) (2,812) (17,244) (8,464)
Interest income (net) 197 641 1,574 1,014
Other income (expense) (180) -- (180) --
Net loss from
continuing operations (6,431) (2,171) (15,850) (7,450)
Discontinued operations:
Loss from operations
of discontinued
business (8,765) -- (9,550) --
Loss on disposal of
discontinued
business (15,198) -- (15,198) --
Net loss $(30,394) $(2,171) $(40,598) $(7,450)
Net loss per share:
Net loss from
continuing
operations $(0.79) $(0.27) $(1.96) $(1.20)
Loss from operations
of discontinued
business (1.08) -- (1.18) --
Loss on disposal
of discontinued
business (1.88) -- (1.88) --
Net loss $ (3.76) $ (0.27) $ (5.03) $(1.20)
Weighted average number
of common and
common equivalent
shares outstanding 8,092 8,023 8,069 6,205
HEMASURE INC.
Consolidated Condensed Balance Sheets
(in thousands)
December 31, December 31,
1996 1995
ASSETS
Cash and marketable securities $ 16,896 $ 47,841
Accounts receivable 283 82
Inventories 376 756
Property plant and equipment, net 2,245 1,286
Other assets 760 247
Total assets $ 20,560 $ 50,212
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued expenses
and capital lease obligations $ 3,944 $ 2,210
Convertible suborbinated note payable 8,687 --
Total stockholders' equity 7,929 48,002
Total liabilities and
stockholders' equity $ 20,560 $ 50,212
SOURCE HemaSure Inc./CONTACT: Jeffrey B. Davis, Senior Vice President, Chief Financial Officer 212-572-6275, or
Jonathan Fassberg, Corporate Communications, 212-572-6275, both of HemaSure Inc./
MIDCOM COMMUNICATIONS REPORTS 1996 RESULTS; Reaches Agreement on $30 Million Credit Facility
SEATTLE, WA--Feb. 27, 1997--MIDCOM Communications Inc. (NASDAQ: MCCI) today reported a net loss of $97.3
million ($6.27 per share) on revenue of $148.8 million for the year ended December 31, 1996.
These results include previously reported one-time charges totaling $31.8 million ($2.05 per share) related to restructuring
charges, writedowns of assets and settlement of certain obligations with a major supplier. MIDCOM's results compare to a
net loss of $33.4 million ($2.76 per share) on revenue of $203.6 million for the year ended December 31, 1995.
For the quarter ended December 31, 1996 MIDCOM reported a net loss of $19.9 million ($1.26 per share) on revenue of
$24.2 million as compared to a net loss of $21.5 million ($1.87 per share) on revenue of $56.1 million for the fourth quarter of
1995. While fourth quarter revenue was consistent with management expectations and was within the range of published
estimates by industry analysts, it represents a significant decline from a year ago.
The decline in revenue throughout 1996 was the result of attrition and other factors, many of which provided the basis for the
company's decision to bring in a new management team in mid- 1996. In addition, a significant portion of the decline is
attributable to the company's previously announced decision to discontinue booking revenue from an acquired customer base
that is the subject of litigation.
MIDCOM also reported that it has reached agreement on a new revolving credit facility with Foothill Capital. Under terms of
the agreement the company will be able to borrow up to $30 million secured by eligible billed and unbilled accounts
receivable. The capital available under the new credit facility, together with a recently announced $13 million switch financing
agreement and the remaining proceeds from the company's August 1996 placement of $98 million in convertible subordinated
notes, will provide additional support for the company's continuing turn-around strategy. Subject to closing conditions, the
company expects to begin borrowing under this facility approximately June 1, 1997.
Commenting on the company's results MIDCOM chief financial officer, Robert J. Chamberlain said, "Fourth quarter and year
end results were in line with our expectations, and we believe that, at current levels, our revenue stream provides us with a
solid platform for growth going forward. We've already begun to see evidence of both increased sales and decreased attrition,
and we're pleased to have secured additional funding to continue our aggressive turn- around efforts."
As previously reported, new MIDCOM management, headed by president and chief executive officer William H. Oberlin,
announced a turn-around strategy based upon development of a switched network and a multiple channel sales program
designed to generate strong internal growth. "The key goals of our recovery strategy are new revenue growth, reduced unit
costs and improved margins -- and we believe we're well underway toward delivering all three," Oberlin said. "We've made
tremendous progress, and it's only a matter of time until that progress begins to be reflected in our numbers. We have
consistently targeted the first quarter of 1997 as the point at which we will begin to see sequential improvement in revenue, and
thus far we see no reason to revise that goal," he added.
Recent developments include initial delivery and site preparation for Nortel DMS 250/500 switches to be installed as part of
the company's new nationwide switched network. The entire six- switch network is targeted for installation by mid-year,
thereby adding significantly to MIDCOM's service capabilities while reducing unit costs almost immediately.
Forward Looking Statements
Statements in this news release concerning future results or expectations, including a decline in attrition, growth in sales,
improved margins, reduced unit costs, closing of a new credit facility and deployment of switching facilities are
forward-looking statements. Actual results, performance, cost-savings or developments could differ materially from those
expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other
factors including those identified in the company's Annual Report on Form 10-K and those described from time to time in the
company's other filings with the Securities and Exchange Commission, press releases and other communications.
Founded in 1989, MIDCOM
Communications Inc. provides a broad range of telecommunications services to small and medium-sized businesses
nationwide. The company is headquartered in Seattle, Washington and has regional offices throughout the nation. MIDCOM
currently invoices approximately 100,000 customer locations per month.
MIDCOM
COMMUNICATIONS INC.
CONDENSED STATEMENTS OF
OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three months
ended Twelve
months ended
December 31,
December 31,
1996 1995
1996
1995
(Restate
d)
(Restate
d)
Revenue $24,187
$56,145 $148,777 $203,554 Cost of
revenue 18,122 38,885
107,950 139,546 Gross profit
6,065 17,260 40,827 64,008
Operating expenses:
Selling, general and
administrative 16,977
19,407 65,025
62,061
Depreciation 1,639
1,301 5,966
4,481
Amortization 4,864
4,105 26,721
9,309
Settlement of contract
dispute -
- 8,800
-
Restructuring charges -
- 2,220
-
Loss on impairment of
assets -
11,830 20,765
11,830
23,480
36,643
129,497
87,681
Operating loss (17,415)
(19,383) (88,670) (23,673)
Other income (expense)
Interest expense, net (2,767)
(1,183) (8,726)
(5,288)
Equity in loss of joint
venture -
227
- (52)
Other income (expense),
net 283
(86) 77
(338)
(2,484)
(1,042)
(8,649)
(5,678)
Loss before provision for
income taxes and
extraordinary item (19,899)
(20,425) (97,319)
(29,351)
Provision for income taxes -
(18) - - Loss before
extraordinary
item (19,899)
(20,407) (97,319)
(29,351)
Extraordinary item: loss
on early redemption of
debt -
(1,075)
- (4,067)
Net loss $(19,899)
$(21,482) $(97,319) $(33,418)
Per share amounts:
Loss before
extraordinary item $(1.26)
$(1.77) $(6.27)
$(2.42)
Extraordinary item -
(0.10)
- (0.34)
Net loss $(1.26)
$(1.87) $(6.27) $(2.76)
Weighted average common
shares outstanding 15,793
11,497 15,529
12,101
CONTACT: MIDCOM COMMUNICATIONS Robert J. Chamberlain or Teresa C. Stackpole 206/628-5174
206/628-6115
Hawaiian Airlines Announces Naming Of Paul J. Casey As New President And CEO
HONOLULU, HI--February 27, 1997-- Career Airline Executive To Succeed Bruce R. Nobles, Engineer Of Hawaiian s
Successful Turnaround Hawaiian Airlines, Inc. (ASE and PSE: HA) Chairman John W. Adams today announced the
resignation of Hawaiian Airlines President and Chief Executive Officer Bruce R. Nobles and the appointment of Paul J. Casey,
current president and chief executive officer of the Hawaii Visitors and Convention Bureau and a career airline executive based
in Hawaii, to succeed him.
Casey brings to Hawaiian a career-long focus on Asia/Pacific air travel sharpened through his extensive experience with
Continental Airlines and the former Pan American World Airways. "Paul Casey's knowledge of the key Hawaii, Pacific and
Asia markets, together with his understanding of the challenges facing large airlines today, make him the ideal person to lead
Hawaiian into the future," Adams said.
From 1985 to 1994, Casey served in several executive positions at Continental, including vice president-International Division;
vice president-Pacific/Asia; and chairman, president and CEO of Continental Air Micronesia. Prior to joining Continental, he
served from 1977 to 1984 in management positions throughout the Pacific for Pan Am. Highlights of Casey's career include
the expansion of Continental s presence in the Australia and Japan markets, and adding Continental routes to Korea, Taiwan
and the Philippines. He also was instrumental in guiding Continental's increased presence in the U.S. West Coast-Hawaii
market.
"Paul's arrival represents the beginning of a new era of opportunity for Hawaiian, as we continue to grow and position the
airline as the flagship carrier to one of the world's most popular travel destinations," Adams said. "Of course, this opportunity
would not exist without the tremendous contributions of Bruce Nobles, who engineered our emergence from bankruptcy and
guided the airline to renewed profitability. The board is grateful to Bruce for his many accomplishments at Hawaiian and we
wish him continued success in his next challenge."
"With Hawaiian back on solid financial footing, I am satisfied that we have accomplished all we set out to do when I joined the
company in 1993," Nobles said. "After an extensive search, John Adams and I believe that Paul Casey is the right individual to
lead this company into the next century. Paul is a respected airline professional and a dynamic leader who will bring added
vitality to our vision for Hawaiian as Hawaii's flagship airline. I am confident putting Hawaiian Airlines in the capable hands of
Paul Casey."
Casey said, "Thanks to the efforts of Bruce Nobles and all the employees of Hawaiian Airlines, the company's prospects have
never been brighter. I am truly excited to be joining the company at such a dynamic point in its proud, 67-year history. Our
mission will be to continue to build on Hawaiian's positioning as our region's carrier of choice, and to be a leader in Hawaii's
efforts to anticipate and meet the challenges that affect travel to our state."
Nobles joined Hawaiian as president and chief executive officer on June 10, 1993. He led the company through a successful
year-long Chapter 11 reorganization in 1993 and 1994, and he restored the airline's profitability by restructuring the airline's
fleet, route structure and labor agreements. More recently, he directed a series of equity investments and offerings that
generated nearly $60 million in new capital for the company.
Under Nobles direction, Hawaiian has been among the more active airlines in building strategic marketing relationships with
other carriers. The company now participates in cooperative marketing programs with American Airlines, Northwest Airlines,
Reno Air, American Eagle/Wings West and Hawaii commuter carrier Mahalo Air.
Hawaiian Airlines, founded as Inter-Island Airways, introduced the first scheduled air transportation in Hawaii on November
11, 1929. Now the nation's 12th largest airline, it provides scheduled and chartered air transportation of passengers, cargo
and mail among the islands of Hawaii and between Hawaii and five U.S. West Coast gateway cities and two destinations in the
South Pacific. Additional information on Hawaiian, including previously issued company news releases, is available on the
Internet via the airline's Web site at http://www.hawaiianair.com.
CONTACT: Hawaiian Airlines, Inc. Keoni Wagner Hawaiian Airlines (808) 838-6778 or Betsy Brod/Jeff Majtyka Investor
Relations Media Contact: Stan Froelich Morgen-Walke Associates (212) 850-5600
Frederick Brewing Co. Executes Forbearance Agreements With Signet Bank
FREDERICK, Md., Feb. 27, 1997 - Frederick Brewing Co. (Nasdaq: BLUE), has announced that on February 27, 1997, it
executed two forbearance agreements with Signet Bank. The first related to a $3 million Maryland Economic Development
Corporation (MEDCO) Taxable Economic Development Revenue Bond, the proceeds of which were to be loaned to Blue II,
LLC, a Maryland limited liability company, to purchase land and construct a new brewery. The brewery has been leased to
Frederick Brewing Co.
The second forbearance agreement related to a $1.5 million MEDCO Taxable Economic Development Revenue Bond, and to
a $1 million bridge loan, the combined proceeds of which were to be loaned to the Company to purchase brewing equipment
for the new brewery. Signet Bank/Maryland is the lender on each loan.
The first forbearance agreement was executed by the Company as a result of an approximately $340,000 budget overrun in
constructing the new brewery, as well as a decline in the company's cash position, which resulted from significant
weather-related delays during construction. The second forbearance agreement was executed as a result of an approximately
$250,000 budget overrun in acquiring certain brewing equipment.
These funding deficiencies caused Signet on January 22, 1997 to claim that the bridge loan was in default and to temporarily
cease funding to Blue II, LLC and the Company subject to the execution of the forbearance agreements. Under terms of the
forbearance agreements, Signet will forbear in the exercise of its rights under the loan documents and continue to make loan
advances to facilitate the final completion of the new brewery, provided the Company and Blue II, LLC meet certain terms
and conditions established by the agreements.
The Company is in the process of raising up to $2 million in a private equity transaction.
Additional information related to both forbearance agreements and other matters can be found in the Company's Form 8-K
filed February 27, 1997 with the Securities and Exchange Commission.
Frederick Brewing Co., which participates in the growing "craft" beer segment of the $50 billion domestic beer market,
produces 10 styles of distinctive, all-natural beers. The Company's products are distributed in Maryland, the District of
Columbia, Virginia, West Virginia, Pennsylvania, New Jersey, Delaware, Georgia and South Carolina.
SOURCE Frederick Brewing Co. /CONTACT: Kevin Brannon, CEO of Frederick Brewing Co., 301-694-7899; or Geoff
High of Pfeiffer Public Relations, Inc., 303-393-7044/