AutoLend Group, Inc. Announces Further Extension of Expiration Date of Debenture Exchange Offer to March 28, 1997
ALBUQUERQUE, N.M., Feb. 28, 1997 - AutoLend Group, Inc. (OTC Bulletin Board: AUTL) (the "Company") announced
today that it has further extended the Expiration Date for its Exchange Offer for its 9.5% Convertible Subordinated
Debentures due 1997 to 5:00 p.m., New York City time, on March 28, 1997. The Exchange Offer was previously set to
expire on March 3, 1997.
The Company also announced that a hearing is scheduled for March 25, 1997 before the United States Bankruptcy Court for
the District of New Mexico at which the Court will consider among other things, a joint motion of the Company and the
petitioning creditors to dismiss the involuntary bankruptcy proceeding against the Company on certain conditions as more fully
described in the motion.
Copies of the Offering Circular and related materials, including the Letter of Transmittal, may be obtained from the Company
as well as from CEDEL BANK, S.A. and EUROCLEAR. The Company expressly reserves the right to further extend the
period of the Exchange Offer, to terminate the Exchange Offer or to otherwise amend the Exchange Offer in any respect,
subject to the terms set forth in the Offering Circular dated October 22, 1996, as supplemented.
SOURCE AutoLend Group, Inc. /CONTACT: Nunzio DeSantis, Chairman, AutoLend Group, 505-768-1000/ (AUTL)
Barneys Confirms Receipt of Dickson Proposal
NEW YORK, NY--Feb. 28, 1997--Barney's, Inc. today confirmed that it has received a proposal from Dickson Concepts
(International) Limited to invest in the company as part of Barneys recapitalization under a company-sponsored plan of
reorganization. However, the company said that it has not yet had the opportunity to review the proposal with its advisors.
According to a spokesperson for the company, "Barneys has had numerous discussions with Dickson and its various
representatives regarding elements of a potential investment proposal. However, the company did not receive Dickson's formal
proposal until early this morning, and has not yet had the opportunity to review it with its financial and legal advisors."
The Dickson proposal has been anticipated in conjunction with the completion of Dickson's due diligence process, for which
Barneys received Court approval to reimburse Dickson Concepts for up to $1 million of expenses.
Barneys has been involved in discussions with potential investors as part of its efforts to develop a plan of reorganization in an
effort to maximize the value of its estate. Barneys currently retains the exclusive right to file or advance a plan of reorganization.
Barney's, Inc. and certain of its subsidiaries voluntarily filed a petition of reorganization under Chapter 11 on January 10,
1996. The company employs approximately 1,950 people in 13 stores in New York City and Manhasset, New York;
Beverly Hills and Costa Mesa, California; Chicago, Illinois; Dallas and Houston, Texas; Troy, Michigan; Chesnut Hills,
Massachusetts; Westport, Connecticut; and Seattle, Washington; nine outlet stores, corporate offices in New York and a
distribution center in Lyndhurst, New Jersey.
CONTACT: Sitrick And Company
Sandra Sternberg, 310-788-2850 Ext. 722
Avatex Calls Defendants' Actions in Foxmeyer Conspiracy Case 'Desperate Legal Maneuvering'
DALLAS, TX - Feb. 28, 1997 - Avatex Corporation, formerly Foxmeyer Health Corporation (NYSE: FOX), said today that
recent court actions by defendants in its suit alleging conspiracy to drive its former subsidiary, Foxmeyer Drug Company, out
of business amounted to "desperate legal maneuvering to avoid litigation that would hold them accountable for their unlawful
actions."
Early this month, Foxmeyer Health sued McKesson Corporation and 12 pharmaceutical manufacturers, alleging they had
unlawfully conspired to drive Foxmeyer Drug, a rapidly growing and low-cost distributor of pharmaceutical and related
products, out of business. Ultimately, Foxmeyer Drug and another Foxmeyer Health subsidiary were forced to file for relief
under the Bankruptcy Code. McKesson acquired the remaining assets of Foxmeyer Drug, while most of the pharmaceutical
company defendants are being represented by Foxmeyer Drug's creditors' committee.
Earlier this week, the creditors' committee filed a court action in a Delaware court alleging that it, and only it, had the right to
sue in the conspiracy action. Subsequently, McKesson, in a separate action, has suggested that it may have acquired these
rights and claims with the assets of Foxmeyer Drug and, accordingly, it, and only it, had the right to sue in the conspiracy
action.
William A. Brewer III of the law firm of Bickel & Brewer, attorney for Avatex, said, "These actions respectively seem to
allege that the creditors alone have the right to sue themselves and that McKesson alone has the right to sue itself. It is
apparent that these actions by defendants are a desperate attempt to avoid being held accountable for their actions."
SOURCE Avatex Corporation /CONTACT: Dwight P. Smith of Halcyon Associates for Avatex Corporation,
214-754-6000/
FAA Revalidates Rich International Airways, Returns Its Certificate; Charter Airline Hopes To Resume Operations Soon
MIAMI, FL - Feb. 28, 1997 - The Federal Aviation Administration, after an exhaustive process of revalidation, has advised
Miami-based Rich International Airways that it has satisfied all of the FAA's concerns regarding alleged safety violations that
led FAA to ground the airline. The FAA is therefore returning Rich's certificate to operate as a worldwide passenger charter
carrier.
"This is a great step forward for Rich and its dedicated employees," said William Meenan, president of the airline. "We are still
working with the Department of Transportation to satisfy DOT that we are qualified, financially and otherwise, to resume
operations. We plan to fly again at the earliest opportunity once that hurdle has been cleared."
Rich has operated worldwide for more than a quarter-century without experiencing an incident or accident resulting in serious
injury to any passenger or crew member, but the FAA surprised the company on September 2, 1996, by issuing an
"emergency order of suspension" based upon a list of charges, most of which related to records-keeping matters. The
company's 21 jetliners were grounded by that action.
Since that time, the airline and the FAA have worked closely to satisfy FAA concerns, resulting in the return of Rich's
operating certificate.
Meenan noted that the company, which was forced to file for protection from creditors under Chapter 11 of the U.S.
Bankruptcy Code during the shutdown, will be a much smaller carrier when it returns to operations. But, he said, "We look
forward to returning as many as possible of our loyal employees to work resuming our mission of safely transporting
passengers throughout the world."
SOURCE Rich International Airways /CONTACT: Mike Clark, Clark Communications, 954-433-2639/
Bally Total Fitness Reports 1996 Year End and Fourth Quarter Results
CHICAGO, IL - Feb. 28, 1997 - Bally Total Fitness Holding Corporation (Nasdaq-NNM: BFIT) today reported results for
the year and quarter ended December 31, 1996. Operating income before depreciation and amortization ("EBITDA") for
1996 was $59.7 million compared to $65.0 million in 1995, while net loss decreased from $36.5 million ($3.08 per share) last
year, pro forma for the effects of the spin-off, to $35.5 million ($2.92 per share) for 1996. Net loss includes an extraordinary
net gain of $5.7 million ($.46 per share) resulting from the extinguishment and refinancing of debt in December 1996.
For the fourth quarter of 1996, EBITDA was $(1.5) million compared to $7.7 million in 1995 and net loss was $19.3 million
($1.59 per share) compared to $18.5 million ($1.56 per share) last year, pro forma for the effects of the spin-off. The 1996
period includes additional charges arising from, and in conjunction with, recent changes in management and the company-wide
restructuring of sales and service initiatives. Net loss includes the December extraordinary net gain of $5.7 million ($.46 per
share).
Commenting on the results and Bally's outlook, Lee S. Hillman, recently elected President and Chief Executive Officer of Bally
Total Fitness, stated, "In the brief period following my appointment in the fourth quarter, our management team began
implementing widespread change throughout the organization. In addition to a number of key management personnel moves,
we began the process of refocusing Bally toward a new vision of its future. Results for both the quarter and the year, which
were in line with analysts' expectations, include the near-term impact of some of these changes."
Hillman continued, "The goal is to improve the Company's core business of membership sales and dues while introducing a
number of new profit centers. Our strategy is very straightforward. We intend to build on our market position and utilize Bally's
unparalleled network of facilities, membership traffic and brand identity - a philosophy closely following the experience of Bally
Entertainment. For example, the recently announced agreement to provide comprehensive outpatient rehabilitation services at
our fitness centers has the potential to create a significant new profit center for the Company, utilizing our existing facilities
during the slowest hours of the day."
Bally Total Fitness is the largest and only nationwide commercial operator of fitness centers in the United States with 4 million
members and approximately 320 facilities in 27 states and Canada.
Certain statements in this release set forth management's intentions, plans, beliefs, expectations or predictions of the future
based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional
information on factors that may affect the business and financial results of the Company can be found in filings of the Company
with the Securities and Exchange Commission.
Bally Total Fitness Holding Corporation
Consolidated Operating Summary
Year ended Quarter ended
December 31 December 31
1996 1995 1996 1995
(Unaudited)
Revenues $625,640,000 $661,740,000 $137,197,000
$152,671,000
Operating income (loss)
before depreciation
and amortization 59,684,000 64,950,000 (1,517,000)
7,685,000
Operating income
(loss) 3,744,000 7,591,000 (16,338,000)
(6,613,000)
Loss before extraordinary
item (pro forma
for 1995) (41,200,000) (36,497,000) (24,975,000)
(18,462,000)
Extraordinary gain on
extinguishment
of debt 5,655,000 -- 5,655,000
--
Net loss (pro forma
for 1995) (35,545,000) (36,497,000) (19,320,000)
(18,462,000)
Per common share (pro forma for 1995):
Loss before extraordinary
item $(3.38) $(3.08) $(2.05)
$(1.56)
Extraordinary gain on
extinguishment of debt .46 -- .46
--
Net loss (2.92) (3.08) (1.59)
(1.56)
Average common shares
outstanding (pro forma
for 1995) 12,174,601 11,845,161 12,187,824
11,845,161
Notes:
A. The Company was an indirect wholly owned subsidiary of Bally
Entertainment Corporation ("Entertainment") until Entertainment spun-
off the Company to its stockholders on January 9, 1996.
B. The extraordinary gain on extinguishment of debt for the year
and quarter ended December 31, 1996 consists of (i) a gain (net of
taxes) of $9.9 million ($.81 per share) resulting from the
forgiveness of indebtedness owed Entertainment, forgiven as part of
the December 1996 merger of Entertainment with Hilton Hotels
Corporation and (ii) a charge (net of taxes) of $4.2 million ($.35
per share) resulting from the December 1996 refinancing of the
Company's securitization facility.
C. The historical net loss for the year and quarter ended
December 31, 1995 of $25.2 million and $12.6 million, respectively,
reflected a federal income tax benefit of $11.3 million and $5.8
million, respectively, arising from the Company's prior tax sharing
agreement with Entertainment. The pro forma net loss and related
per share amounts (which are unaudited) were calculated giving
effect to (i) adjustments made to reflect the income tax
provision/benefit as if the Company had filed its own separate
consolidated income tax returns for each period and (ii) the
distribution of 11,845,161 shares of Company common stock to
Entertainment stockholders as if such distribution had taken place
as of the beginning of each period.
SOURCE Bally Total Fitness Holding Corporation/CONTACT: Carreen Winters, cwintersmww.com, or Michael W.
Kempner, mkempnermww.com, 201-507-9500, both of MWW/Strategic Communications/
L.A. Gear reports financial results for the fourth quarter and fiscal year
SANTA MONICA, Calif.--Feb. 28, 1997--L.A. Gear Inc. (NYSE:LA) Friday announced its financial results for the year
and fourth quarter ended Nov. 30, 1996.
For the year ended Nov. 30, 1996, the company reported a net loss and a loss applicable to common stock of $61.7 million
($2.69 per share) and $70.1 million ($3.06 per share), respectively, on net sales of $196.4 million. For the year ended Nov.
30, 1995, the company reported a net loss of $51.4 million ($2.24 per share) and a loss applicable to common stock of $59.1
million ($2.58 per share), respectively, on net sales of $296.6 million.
For the quarter ended Nov. 30, 1996, the company reported a net loss of $50.5 million ($2.20 per share) and a loss
applicable to common stock of $52.6 million ($2.29 per share) on net sales of $25.9 million. For the quarter ended Nov. 30,
1995, the net loss was $34.3 million ($1.49 per share) and the loss applicable to common stock was $36.3 million ($1.58 per
share) on net sales of $53.8 million.
For the quarter and year ended Nov. 30, 1996, the company incurred a restructuring charge of $28.8 million in connection
with its reorganization plan. For the quarter and year ended Nov. 30, 1995, the company incurred restructuring and
non-recurring charges of $5.1 million and $5.6 million, respectively.
More detailed financial information, including management's discussion and analysis of financial condition and results of
operations, is contained in the company's Form 10-K for the year ended Nov. 30, 1996, filed Friday with the Securities and
Exchange Commission.
L.A. Gear designs, develops and markets a broad range of quality athletic and lifestyle footwear for adults and children.
L.A. GEAR INC. AND
SUBSIDIARIES
Consolidated Statements of
Operations (In thousands,
except per-share amounts)
Three months
ended
Year ended
Nov. 30,
Nov. 30,
1996
1995
1996
1995
(Unaudited)
Net sales $ 25,879 $
53,791 $196,448 $296,551 Cost of
sales 27,118 43,294
149,213 207,802 Gross profit
(1,239) 10,497 47,235
88,749 Selling, general and
administrative expenses 21,292
38,893 86,838 136,504
Restructuring charges 28,829
5,099 28,829 5,099 Litigation
settlements,
net 50
(18) (1,905)
(2,323)
Interest expense, net 539
700 2,148 2,190 Loss before
income taxes
and minority interest (51,949)
(34,177) (68,675)
(52,721)
Income taxes --
-- -- -- Minority
interest 1,489 (83)
6,986 1,324 Net loss
(50,460) (34,260) (61,689)
(51,397) Dividends on mandatorily
redeemable Series A
cumulative convertible
preferred stock --
(1,998) (3,044)
(7,746)
Dividends on Series B
cumulative convertible
preferred stock (2,138)
-- (5,344) --
Loss applicable to common
stock $(52,598)
$(36,258) $(70,077)
$(59,143)
Loss per common share
before preferred
dividends $ (2.20) $
(1.49) $ (2.69) $
(2.24)
Loss per common share $ (2.29) $
(1.58) $ (3.06) $ (2.58) Weighted
average common
shares outstanding 22,937
22,937 22,937 22,937
-0-
L.A. GEAR INC. AND
SUBSIDIARIES
Selected Consolidated Balance
Sheet Data
(in thousands)
Nov.
30,
Nov.
30,
199
6
199
5
Cash and cash equivalents $
34,239 $ 35,956 Accounts
receivable, net 23,938
46,630 Inventories
32,809 51,677
Working capital
46,467 103,999 Convertible
subordinated debentures 50,000
50,000 Mandatorily redeemable Series
A
preferred stock plus accrued and
unpaid dividends
-- 107,746
Accumulated deficit
(239,358) (169,281) Total
shareholders' equity (deficit) 4,504
(40,627)
CONTACT: L.A. Gear Inc., Santa Monica Victor Trippetti, 310/581-7446