InterNet Bankruptcy Library - News for March 14, 1997

Bankruptcy News For March 14, 1997

  1. Toy Biz Reports Fourth Quarter and Year
            End Results

  3. Elsinore Corp. reorganization
            effective Feb. 28, 1997; company reports fourth-quarter
            and year-end results

  5. Grant Geophysical Reaches Agreement for
            $30 Million of New Equity


Toy Biz Reports Fourth Quarter and Year End

NEW YORK, NY - March 14, 1997 - Toy Biz, Inc. (NYSE: TBZ)
today reported results for the fourth quarter and year ended
December 31, 1996. For the quarter, net sales were $54.0 million
and there was a net loss of $2.5 million or $0.09 per share,
compared to net sales of $79.4 million and net income of $11.7
million or $0.43 per share in the fourth quarter a year ago. For
the year, net sales were $221.6 million and net income was $16.7
million or $0.61 per share, compared to net sales of $196.4
million and net income of $28.4 million or $1.05 per share for
the year ended December 31, 1995. The Company said fourth quarter
results were negatively affected principally by a softer than
anticipated Christmas season.

A significant portion of the Company's revenue is derived from
sales of products based on characters owned by href="chap11.marvel.html">Marvel Entertainment Group under an
agreement with Marvel. Marvel filed for relief under Chapter 11
of the Bankruptcy Code on December 27, 1996. The Company believes
that sales of the Company's products have been and will continue
to be adversely affected by concerns among retailers as to the
impact of the bankruptcy of Marvel on the future of Toy Biz and
the Marvel brand.

On March 7, 1997, Andrews Group Incorporated informed the
Company that it did not expect to complete its previously
announced merger with the Company because it had terminated its
agreement to purchase new shares of Marvel as part of Marvel's
reorganization plan. Also on that date, Marvel announced that it
had received a proposal for an equity investment from the Marvel
Holding company's Bondholders' Committee as part of a new Plan of
Reorganization and that Marvel had authorized its management to
work with the bondholders to conduct their due diligence and
develop definitive documentation. Representatives of the
bondholders have publicly stated that they might seek to have
Marvel reject the agreement under which the Company manufactures
and sells products based on Marvel characters. The Company
believes that Marvel has no right to reject the agreement as a
matter of law and the Company would vigorously oppose any such

Toy Biz, Inc. designs, markets and distributes new and
traditional toys in the boys, girls, preschool, activity and
electronic toy categories featuring major entertainment and
consumer brand name properties under agreements with Marvel,
NASCAR, Coleman, Disney, Gerber, Henson, MCA/Universal and Warner

Forward Looking Statements: Except for historical information
contained herein, the statements in this news release regarding
the Company's products, licensing relationships and growth plans
are forward-looking statements that are dependent upon certain
risks and uncertainties, including those relating to the outcome
of the Marvel bankruptcy, the level of media exposure or the
popularity of the Company's characters and trademarks, consumer
acceptance of the Company's new product introductions, the
Company's dependence on Chinese manufacturers, U.S. trade
relations with China, changing consumer preferences, production
delays or shortfalls and general economic conditions. Those and
other risks and uncertainties are described in the Company's
filings with the Securities and Exchange Commission, including
the Company's Annual Report on Form 10K and Quarterly Reports on
Form 10Q.

                                    TOY BIZ, INC.
                     Condensed Consolidated
                     Statements of Income
                    (Dollars in thousands, except
                    per share data)


                                     December 31,

            Net sales                  $54,004   
              $79,385    $221,624

            Cost of sales               33,334   
               36,524     116,455

            Gross profit                20,670   
               42,861     105,169

        Operating expenses:
         Selling , general
              and administrative        17,486   
                 17,611      61,876

         Depreciation and
              Amortization               7,448   
                  6,084      16,078

             Total operating expenses   24,934   
                23,695      77,954

            Operating income            (4,264)  
               19,166      27,215

            Interest income, net           102   
                  168         596

         Income before provision
              for income taxes          (4,162)  
                 19,334      27,811

         Provision for income
              taxes                     (1,665)  
                  7,594      11,124

            Net income                 ($2,497)  
              $11,740     $16,687

            Earnings per share          ($0.09)  
                $0.43       $0.61

        Weighted average number of common and
        common equivalent shares outstanding,
            (In thousands)              27,761   
               27,199      27,366

SOURCE Toy Biz, Inc./CONTACT: Diane Perry, 212-704-8293, or
Joseph Kist, 212-704-8239, both of Edelman Financial/

Elsinore Corp. reorganization effective
Feb. 28, 1997; company reports fourth-quarter and year-end

LAS VEGAS, NV -March 14, 1997--Elsinore
(ASE/PSE:ELS) Friday announced the Chapter 11
reorganization of Elsinore and certain of its subsidiaries became
effective following the close of business on Feb. 28, 1997.

On Feb. 20, 1997, the Nevada Gaming authority licensed the
reorganized company's new controlling shareholder, three new
members of the reorganized company's board of directors and
Riviera Gaming Management-Elsinore Inc. (RGME), the replacement
managers of the reorganized company, all as contemplated by the
plan of reorganization.

Under the plan, the common stock outstanding prior to the
effective date was canceled and 4,929,313 shares of new common
stock were issued. 4,745,280 of those shares, or 96.3 percent of
the total outstanding, were issued to a class of the company's

Ten members of that class, which are entities managed by the
New York financial-services firm of Morgens, Waterfall, Vintiadis
& Co. Inc., acquired 4,646,440 shares.

Also under the plan, 77,428 new shares, or 1.6 percent of the
total outstanding, were issued to holders of the canceled stock.
An additional 70,687 shares will be issued to other creditor
groups when claims by certain members of those groups are

Trading in Elsinore's common stock continues to be halted by
the American Stock Exchange and by the Pacific Stock Exchange.
The American Stock Exchange has informed the company that it
intends to delist the stock.

Elsinore Friday reported revenues of $15,384,000 for the
fourth quarter ended Dec. 31, 1996, compared with $13,924,000 for
the comparable period of 1995.

The company reported a net loss of $636,000, or 4 cents per
share on 15,891,793 weighted average shares outstanding, for the
fourth quarter, compared with a net loss of $29,551,000, or $1.86
per share on 15,877,849 weighted average shares outstanding, for
the fourth quarter of 1995.

For the year ended Dec. 31, 1996, the company reported
revenues of $61,199,000, compared with $56,973,000 for the same
period last year. Net loss for the 12-month period was
$1,556,000, or 10 cents per share on 15,891,793 weighted average
shares outstanding, compared with a net loss of $45,749,000, or
$2.95 per share on 15,511,983 weighted average shares
outstanding, for the same period a year ago.

Elsinore owns the Four Queens Hotel & Casino in downtown
Las Vegas, which offers 690 rooms, meeting facilities, four
restaurants, more than 1,000 slot machines and numerous
blackjack, craps and other table games.

The hotel and casino have been operated by RGME under an
interim management agreement since Aug. 12, 1996. The interim
agreement converts to a 40-month management agreement for which
RGME receives a minimum annual management fee of $1 million plus
a management fee equal to 25 percent of any increase in EBITDA in
any fiscal year in excess of $8 million.

In addition, RGME has warrants to acquire an equity position
in Elsinore.

Certain subsidiaries, including Olympia Gaming Corp. and Four
Queens Experience Corp., remain under the protection of the
Bankruptcy Court pending the outcome of certain events.

For information on Elsinore via facsimile at no cost, simply
call 800/PRO-INFO and dial company code 177.

           (Debtor in Possession)
              Condensed Consolidated Statements
              of Operations
               (Dollars in thousands, except
               per-share data)

                                   Three months
                                   Year ended
                                         Dec. 31,

        Net revenues:
        Casino                        $  9,899  
        $  9,718   $ 42,300   $ 39,964 Hotel     
                              2,883      2,608   
         11,202 9,564 Food and beverage          
             2,807      3,165     12,373 12,136
        Interest and other               1,029   
            111      1,502 1,983 Promotional
        allowances          (1,234)    (1,678)   
        (6,178) (6,674)
        Costs and expenses:
        Casino                           4,131   
          4,628     17,694 19,705 Hotel          
                         2,341      1,993     
        8,482 7,897 Food and beverage            
           1,815      1,544      7,088 6,010
        Taxes and licenses               1,488   
          1,609      6,592 6,627 Selling, general

         administrative                  2,999   
           2,931     10,331
        Rents                            1,011   
            930      4,055 3,955 Provision for
        losses on
         loans receivable from
         Native American Tribes              0   
        --     23,598
        Casino development costs             0   
            237 --      2,323 Depreciation and   

         amortization                      979   
             915      3,816
        Interest (contractual
         interest for 1996 and
         1995 of $7,661 and $9,212,
         respectively)                   1,179   
             996      2,505
        Interest, prior-period

         income tax obligation               0   
        --        590
        Income (loss) before
         reorganization items             (559)  
         (20,873)       636
        Reorganization items               (77)  
         (8,678)    (2,192) (8,678)

        Net loss                      $   (636) 
        $(29,551)  $ (1,556) $(45,749)

        Loss per common share         $  (0.04) 
        $  (1.86)  $  (0.10)  $ (2.95) Weighted
        average number of
         common shares outstanding  15,891,793
         15,877,849 15,891,793

                      Consolidated Balance Sheet


        Current assets                   $  
        9,554   $   5,578 Total assets           
                    42,627      37,101 Current
        liabilities                  9,428      
        6,182 Long-term debt                     
        69,422      69,927 Shareholders' equity
        (deficit)   $ (40,710)  $ (43,441)

CONTACT: Elsinore Corp., Las Vegas Cynthia A. Fremont,
702/387-5115 or The Financial Relations Board Inc., Los Angeles
Daniel Saks, 310/442-0599

Grant Geophysical Reaches Agreement for
$30 Million of New Equity

HOUSTON, TX - March 14, 1997 - Grant
announced today that it has entered into a letter
of intent with Elliott Associates L.P. of New York to fund and
jointly sponsor a plan of reorganization for Grant.

The letter of intent calls for Elliott Associates to invest up
to $30 million in new equity capital in Grant and to provide $2
million in expanded credit facilities to augment the growth of
Grant's international operations. The investments are to be made
in connection with a reorganization plan for Grant. Pending
consummation of the reorganization plan, Elliott will make
available an additional $2.5 million in loans to supplement
Grant's existing working capital.

The letter of intent is subject to the negotiation and
execution of definitive agreements and to the approval by the
United States Bankruptcy Court for the District of Delaware where
Grant's Chapter 11 case is pending. A motion to approve the
letter of intent is being filed with the court and is expected to
be acted upon by the end of March.

Assuming approval of the letter of intent, Grant and Elliott
will file a jointly proposed reorganization plan providing for
specific recoveries to Grant's secured and unsecured creditors.
Secured creditors would be paid in full in a combination of cash
and/or new promissory notes. Unsecured creditors will be able to
select from a menu of recovery options that include cash and
stock, promissory notes or credits exchangeable for Grant
services performed after consummation of the plan. In addition,
the plan will provide for a $33 million Rights Offering, $30
million of which will be guaranteed by Elliott. Under the Rights
Offering, the Company's unsecured creditors and its preferred and
common shareholders will be granted the right to purchase shares
of Grant's new common stock at the same price per share as
Elliott's investment. The plan will also provide an option for
Company employees to participate in the Rights Offering subject
to any required Securities and Exchange Commission clearances.
The new shares will be offered to employees on the same basis as
those offered to creditors, shareholders and Elliott. If the plan
is consummated, Elliott Associates will own a minimum of 51%
Grant's common stock.

Consummation of the plan is subject to several conditions,
including approval by the court and the vote of the Company's
creditors and shareholders. The Company expects to file the plan
by May 15, 1997.

Grant also announced several write-offs and preliminary,
unaudited operating results for the year and quarter ended
December 31, 1996. For the full year, the Company recorded
revenue of $103 million compared with $92 million for the
previous year. The net loss for the year, including writedowns of
impaired assets and reserves for losses on previous activities
and operations closed or slated to be sold in connection with

the Company's reorganization, totaled $74 million. This
compares with net income, before requirements for preferred
dividends, of $3 million for the year ended December 31, 1995.
The 1996 loss includes the recognition of extraordinary expenses,
writedowns and reserves totaling $52 million. These expenses,
writedowns and reserves result from a comprehensive evaluation of
the Company's assets and operations and relate primarily to the
Company's discontinuance or sale of operations in Peru and
Nigeria, the establishment of adequate reserves for accounts
determined to be uncollectible, write-off of the Company's
investment in a proprietary data acquisition system and certain
other equipment not expected to generate future cash flows
adequate to support current carrying values, severance costs for
employees terminated during the year, accelerated amortization of
prepaid and deferred costs associated with certain ongoing
operations and costs associated with the Company's

For the quarter ended December 31, 1996 on a preliminary,
unaudited basis, the Company recorded revenue of $22 million
compared with $28 million for the same quarter of the previous
year. The net loss for the quarter, including the extraordinary
expenses, reserves and writedowns mentioned above totaled $49
million. This compares with net income of $326,000 for the
quarter ended December 31, 1995. The 1996 loss includes one time
charges totaling $36 million. Final results for the year and
quarter will be released in connection with the filing of the
Company's annual report on Form 10K currently expected on or
about March 30.

The Company said it believes it has taken the actions
necessary to refocus its operations to achieve positive operating
cash flow in coming periods. The actions taken include the
termination of unprofitable operations in Peru, the sale of its
Nigerian business which incurred losses in 1996, a significant
reduction of overhead costs in its Houston headquarters and the
restructuring of agreements with both suppliers and customers to
more accurately reflect the costs and risks associated with
projects undertaken by Grant. Coupled with the new equity capital
expected to be derived from completion of the reorganization
plan, these actions are expected to position the Company to
compete effectively and profitably in the strengthening worldwide
market for geophysical services.

This release contains forward-looking statements relating to
such matters as anticipated financial performance, business
prospects, potential reorganization plans and similar matters.
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a
variety of factors could cause the Company's actual results and
experience to differ materially from the anticipated results or
other expectations expressed in the Company's forward-looking
statements. The risks and uncertainties that may affect the
operations, performance development and results of the Company's
business include weather conditions, outcome of negotiations and
approval of reorganization plans, demand for seismic data
acquisition services in general and specifically for the
Company's services, and other risks factors identified in the
Company's Annual Report on Form 10K and its Quarterly Reports on

Grant Geophysical, Inc. and its subsidiaries and affiliates
provide land and transition zone seismic services in the United
States, Latin America and the Far East. The Company employs
approximately 3,000 people in its worldwide operations.

SOURCE Grant Geophysical, Inc. /CONTACT: Larry E. Lenig, Jr.,
President, or Michael P. Keirnan, Chief Financial Officer, both
of Grant Geophysical, Inc., 713-398- 9503/