Sizzler International reports 4 cents third quarter loss
LOS ANGELES, CA--March 6, 1997--Sizzler International Inc. (NYSE: SZ) Thursday announced a 4 cents loss for the
quarter ending Feb. 2, 1997.
For the fiscal 16 weeks ended Feb. 2, 1997, the Company reported revenues of $88,059,000 compared with $128,428,000
in the same period last year. The Company reported a loss for the 16 week period of $1,281,000, or 4 cents per share, vs. a
loss of $4,569,000, or 16 cents per share, in the 16 week period a year ago.
Year-to-date revenues were $240,528,000 compared with $336,149,000 in the same period last year. The Company
reported a loss for the 40 week period ended Feb. 2, 1997, of $1,409,000, or 5 cents per share, vs. a loss of $3,965,000, or
14 cents per share, for the same period last year.
Both current revenues and year-to-date revenues are based on operating or licensing 26 percent fewer restaurants than the
comparable period last year. This reduction in operating restaurants was due to the restructuring plan initiated by the Company
last June. Sizzler is in the midst of a financial reorganization under protection of a Chapter 11 filing initiated by the Company on
June 2, 1996.
Sizzler International currently operates or licenses 410 Sizzler restaurants worldwide. In addition, the Company operates 94
Kentucky Fried Chicken (KFC) restaurants and one The Italian Oven restaurant in Queensland, Australia.
For more information on Sizzler International via facsimile at no cost, simply call 800/PRO-INFO and dial client code SZ.
SUMMARY OF RESULTS
CONSOLIDATED STATEMENTS OF
(Dollars in thousands, except per
Systemwide Sales $
196,691 $ 252,082 (22.0)% Revenues
$ 88,059 $
128,428 (31.4)% Net Income (Loss)
$ (1,281) $ (4,569)
72.0% Net Income (Loss) Per Common Share
$ (0.04) (0.16) 75.0% Common
and Common Equivalent Shares 29,047,000
27,773,000 4.6% Common Shares, Assuming
Full Dilution 29,047,000 27,773,000 4.6%
Systemwide Sales $
529,740 $ 673,928 (21.4)% Revenues
$ 240,528 $
336,149 (28.4)% Net Income (Loss)
$ (1,409) $ (3,965) 64.5%
Net Income (Loss) Per Common Share $
(0.05) $ (0.14) 64.3% Common and
Common Equivalent Shares 28,985,000
27,791,000 4.3% Common Shares, Assuming
Full Dilution 28,985,000 27,791,000 4.3%
CONTACT: Sizzler International Inc. Christopher R. Thomas 310/827-2300 or At Financial Relations Board Timothy Kent -
general information Steven Seiler - media contact Moira Conlon - analyst contact 310/442-0599
SWEPCO Proposes Lowest Initial Rate, Most Flexibility in Cajun Reorganization Plan
DALLAS, TX - March 6, 1997 - Southwestern Electric Power Company (SWEPCO) has proposed the lowest initial rate
and new, flexible pricing options for Louisiana's distribution cooperatives under its reorganization plan for Cajun Electric
Power Cooperative, Inc. (Cajun).
The new proposal supports the second amended plan filed in bankruptcy court on Oct. 26, 1996, by SWEPCO, Entergy Gulf
States and the Members Committee, which currently consists of seven of the 12 distribution cooperatives served by Cajun.
Two competing plans have been filed, each with different rate paths, asset purchase proposals and other provisions. All the
plans are subject to closing conditions, approval of the bankruptcy court and regulatory approvals.
During a March 3 Louisiana Public Service Commission (LPSC) hearing on the rate provisions of the three plans, SWEPCO
representatives said the company's proposal would provide an average initial wholesale rate of less than 3.45 cents per
kilowatt-hour. "This represents a reduction of at least 20 percent from existing rates paid by the cooperatives to Cajun," said
Marvin McGregor, SWEPCO's Cajun Electric project manager, after the hearing. "Our plan would provide the lowest initial
rate of the three competing plans, and during the first year alone, it would save the co-ops more than $31 million as compared
with either of the other two plans."
In addition, under proposed contracts with the Member cooperatives, the SWEPCO plan would be the lowest-cost plan over
a 10-, 15- or 25-year time horizon, according to McGregor. "For example, the SWEPCO plan offers 15-year present value
savings for the cooperatives of $82 million as compared to the Enron Capital & Trade Resources plan, and $173 million as
compared to the NRG Energy, Zeigler Coal Holding Co. and Southern Electric International plan," McGregor said. The
LPSC has used a 15-year period for analysis in its continuing review of wholesale rates in the competing bankruptcy plans.
SWEPCO and the Members Committee of Cajun Electric cooperatives continue to work together to finalize agreements
which would support the plan they have jointly proposed to the bankruptcy court. Priorities for SWEPCO and the Members
include a low initial rate, long-term agreements for power supply stability, pricing options to support the Members' future
competitive position, and payment to creditors of a fair price for Cajun's non-nuclear assets.
"We recognize that each of the co-ops has individual needs, and we are working toward mutually agreeable contracts that
provide the pricing options which are important to the cooperatives in shaping their own competitive futures," McGregor said.
"Under our proposal, each co-op would be able to choose a rate option that varies with fuel prices, starting at an average of
less than 3.45 cents per kilowatt-hour and guaranteed not to exceed an average of 3.6 cents in the first year. Or they would be
able to choose a fixed rate option of 3.8 cents for 10
years." Under either of the proposed rates, each Member cooperative would preserve the option, at five-year intervals, to
move from a fixed rate to an actual fuel cost rate, or from an actual fuel cost rate to a new fixed rate that would be negotiated
between the Member and SWEPCO at the time.
The Members also would have market flexibility under the SWEPCO proposal through provisions which would allow the
Member cooperatives to shop for power on the open market when their combined energy needs exceed an agreed upon level,
or to buy additional power from SWEPCO at the same rate as their base supply rate within certain contract parameters.
Over the 25-year term of the contracts, the projected rate path under SWEPCO's plan would start significantly lower than the
competing plans, increase somewhat over the middle years and decline in the later years, according to McGregor.
Southwestern Electric Power Company, based in Shreveport, Louisiana, is a subsidiary of Central and South West
Corporation (NYSE: CSR), a Dallas-based public utility holding company.
Plan Summary SWEPCO/Members Committee/Entergy Gulf States
- A SWEPCO subsidiary or affiliate would acquire all of Cajun's non- nuclear assets, including the Big Cajun I gas-fired plant,
the Big Cajun II coal-fired plant and related non-nuclear assets for: - approximately $780 million in cash, - up to an additional
$20 million to pay certain other bankruptcy claims and expenses, and - an additional $7 million to acquire claims of unsecured
creditors. - SWEPCO and the cooperatives would enter into new 25-year power supply agreements featuring low wholesale
rates, rate options and market flexibility: - Rate Option 1 - based on actual fuel costs with average initial rate of less than 3.45
cents per kilowatt-hour (guaranteed average maximum of 3.6) - Rate Option 2 - using preset rate components with average
fixed rate of 3.8 cents per kilowatt-hour for 10 years - Opportunity to elect, at 5-year intervals, to move from fixed rate to
actual fuel cost rate, or from actual fuel cost rate to new, negotiated fixed rate - Market flexibility to acquire power on the
open market when the co-ops' power requirements exceed mutually agreed upon levels - The plan would settle all claims and
litigation in the bankruptcy case, including potentially protracted litigation over power supply contract rights. - The plan is
subject to a number of conditions, including, without limitation, finalization of mutually acceptable arrangements between
SWEPCO and the Member cooperatives, approval of the bankruptcy court, Louisiana Public Service Commission and other
regulatory approval, and various closing conditions.
SOURCE Central and South West Corporation /CONTACT: Peter Main of Southwestern Electric Power Company,
New Allied Development held hearing on motion to convert Country World Casinos Bankruptcy case from Chapter 11 to
DENVER, CO ---March 6, 1997--New Allied Development Corp. (BULLETIN BOARD:NEAL); on March 3, 1997, the
United States Bankruptcy Court, District of Colorado, held a hearing on a motion to convert the Country World Casinos Inc.
Bankruptcy case from Chapter 11 to a Chapter 7.
The judge's ruling denied to TommyKnockers Casino Corp./New Allied Development Corp. its motion to convert, and further
ruled to dismiss the bankruptcy case. This is subject only to a formal order signed by the bankruptcy judge.
The parties have the right to appeal the judge's decision within 10 days.
The dismissal of the bankruptcy case releases the stay of outstanding actions. This includes litigation whereby TKCC/NADC
claims against CWCI for the wrongful issuance of 5 million shares of CWCI stock to Holly Holdings Inc. and New Allied
Development Corp.'s foreclosure on the hotel property located in Blackhawk, Colo., presently owned by Country World
CONTACT: New Allied Development Corp., Denver Judy Nation, 303/837-1865 Fax: 303/837-1868
Gold River reorganization plan confirmed by U.S. Bankruptcy court in Las Vegas
LAS VEGAS, NV--March 6, 1997--Gold River Hotel & Casino Corp. and Gold River Operating Corp., (collectively "Gold
River") Thursday announced that the Second Amended Plan of Reorganization, as modified (the "Plan"), was confirmed by the
United States Bankruptcy Court for the District of Nevada.
A total of $75 million in Mortgage Notes and accrued interest thereon will be converted to equity, thereby making Gold River
substantially debt free. Class A and B common stock are canceled and Gold River will become privately held.
The only material remaining debt is a $5.75 million promissory note secured by a first lien on Gold River's assets. Various
conditions of the Plan remain to be satisfied before the Plan becomes totally effective.
Gold River is pleased that the Plan has been confirmed and management believes that the new capital structure will make Gold
River more competitive in the Laughlin, Nev. market.
CONTACT: Gold River Hotel & Casino Corp. John H. Midby, 702/362-0040
Model Imperial, Inc. Announces Non-Binding Letter Agreement with Quality King, Inc. Regarding Funding of Chapter 11
Plan of Reorganization
BOCA RATON, Fla., March 6, 1997 - Model Imperial, Inc. (OTC Bulletin Board: MODL) today announced that it has
entered into a non- binding letter agreement with Quality King, Inc., to finalize a financing/funding agreement to be approved
by the bankruptcy court by no later than April 15, 1997, pursuant to which Quality King or its designee would purchase the
secured portion of the claim currently held by NationsBank South, N.A., as agent for itself, the First National Bank of Boston,
and South Trust Bank of Alabama, N.A. (the "Secured Lenders"), and thereafter fund Model Imperial's Chapter 11 plan of
reorganization for the benefit of other creditors, as well as provide financing to Model Imperial following its emergence from
bankruptcy. Upon approval of the financing/funding agreement, Quality King would also be committed to deposit certain sums
in order to pay administrative and priority claims and unsecured creditors. In July 1996, Model Imperial, along with its affiliates
and subsidiaries, filed voluntary petitions seeking protection under Chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of Florida. In consideration for providing this financing, Quality King would receive
90% of a new class of common stock to be issued by reorganized Model Imperial, which class of stock would be the only
outstanding class of common stock of the reorganized entity. The remaining 10% of the new common stock would be issued
to existing stockholders.
The Company also announced that it, along with representatives of Quality King, intends to immediately continue negotiations
with representatives of the Official Creditors' Committee and the Secured Lenders in an effort to jointly draft and develop a
financing/funding agreement and plan of reorganization mutually acceptable to each of them. The Official Creditors' Committee
and the Secured Lenders have agreed in principle to the proposed transactions with Quality King. Pursuant to the non-binding
letter agreement Model Imperial would be required to have a plan of reorganization confirmed by the Bankruptcy Court no
later then June 30, 1997, with an effective date of no later than July 30, 1997. The Company believes that the prior execution
and court approval of the financing/funding agreement with Quality King would allow the Company to pay its Secured Lenders
and unsecured creditors in accordance with the terms outlined in the letter agreement, maintain financing of its operations and
obtain the additional time necessary to propose and confirm a feasible plan of reorganization and emerge from bankruptcy as a
Model Imperial is a wholesale distributor of brand-name fragrances. The Company primarily distributes prestige fragrances,
but also offers mass market fragrances and certain cosmetic and beauty care products, for men and women. The Company
also operates licensed retail departments in retail locations throughout the United States. The Company's fragrance and
cosmetic distribution product lines comprise approximately 4,000 individual brand-name items. Quality King is a wholesale
distributor of health and beauty care products, fragrances and pharmaceuticals.
SOURCE Model Imperial, Inc/CONTACT: Leonard Silverstein, CFO, Model Imperial, 407-241-8244/
Default judgement rendered against Electropure in Puerto Rico
LAGUNA HILLS, Calif.--March 6, 1997--Electropure Inc. (ELTP) Thursday announced that a $3 million default judgement
was rendered in June, 1996 against the company, its bankrupt subsidiary (HOH International Inc.) and various officers and
directors of such companies.
The judgement was also rendered against HOH/CNM2 Enterprises and its incorporators, including Radames Torres, who
was the former president and general manager of HOH International Inc. The lawsuit was filed in February, 1993 by the
Economic Development Bank for Puerto Rico, the preferred stockholder in HOH International Inc. However, none of the
defendants were personally served or notified of the lawsuit until late October, 1996 -- after the judgement had been entered.
The lawsuit, filed in the San Juan Superior Court, alleged that the company, its subsidiary, and the officers and directors of
both, breached their fiduciary duty in entering into a distribution agreement with HOH/CNM2 Enterprises which ultimately led
to the dissolution of the subsidiary.
Based upon grounds of improper service of process, the company and its officers/directors, are in the process of petitioning
for a rehearing of a motion to set aside the default judgement which the Puerto Rico Court denied in February, 1997.
Settlement negotiations have been initiated and the company is hopeful that a resolution can be achieved quickly.
CONTACT: Electropure Inc., Laguna Hills Cathy Patterson, CFO 714/770-9187
Universal International, Inc. Announces the Technical Default of Its Loan Agreement
MINNEAPOLIS, MN - March 6, 1997 - Universal International, Inc. (Nasdaq: UNIV) (the "Company") announced today
that it is in technical default of several provisions of its loan agreement with BankAmerica Business Credit, Inc. ("Lender"). The
provisions that the Company is in technical default of include: a minimum net worth covenant as of December 31, 1996 and
continuing through the current date; a requirement to obtain a commitment letter from another lender for refinancing of the
current loan agreement on or before February 28, 1997; and certain other provisions related to miscellaneous reporting
requirements. Although the Lender has declared the Company in default of these provisions of the loan agreement, the Lender
is currently allowing the Company to remain in violation of these provisions while the Company seeks new financing.
As a result of the technical defaults, the Lender has elected to reduce the credit line from $16,000,000 to $12,500,000 and
increase the interest rate on the loan from prime plus 1 1/2% to prime plus 3 1/2%.
The loan agreement with the Lender expires March 31, 1997 and is subject to monthly renewals unless the loan agreement is
terminated by either the Company or Lender with ten day written notice prior to the end of March 31, 1997, or the end of any
monthly renewal term. The Lender may also terminate the loan agreement without notice upon an event of default.
The Company, at the end of last week, had been in the process of documenting a new loan which ultimately did not close. The
Company's primary objective now is to secure and close on a new credit line within the next 90 days. In order to minimize the
impact of the reduction in the current credit line over the next 90 days, the Company is in the process of reducing its overall
If the company is not able to obtain financing from another lender within the next few months there could be a material adverse
effect on the Company and its operations.
Universal International, Inc. buys and sells quality "close-out" merchandise in both its wholesale business and its Only Deals
and Odd's-N- End's retail store chains. Through its subsidiary, Universal Asset-Based Services, Inc., it also provides
inventory valuation and liquidation services. Universal International, Inc.'s shares are traded on The Nasdaq Stock Market
under the symbol UNIV.
SOURCE Universal International, Inc. /CONTACT: Mark Ravich for Universal International, Inc., 612-533-1169/