InterNet Bankruptcy Library - News for March 17, 1997

Bankruptcy News For March 17, 1997

            1996 OPERATING RESULTS

  3. Bullet-Cougar Golf Corporation Names
            New President/CEO

  5. Wabash National Corporation Announces
            Acceptance of Bid to Purchase Certain Fruehauf Assets

  7. Grossman's announces store openings

  9. Jayhawk Acceptance Corporation Reaches
            Agreement as to Its Continued Use of Cash Collateral

  11. Reddi Brake Supply Corp. announces
            involuntary bankruptcy petition

  13. Stratosphere Corporation
            announces consolidated cash flow pursuant to
            restructuring agreement

  15. Today's Man Selects Salomon Brothers As
            Strategic Advisor In Restructuring Process


DAYVILLE, Conn.--March 17, 1997--href="chap11.americanwhite.html">American White Cross, Inc. -
DIP (Nasdaq:AWCIQ) today announced operating results for the
fourth quarter and year ended Dec. 31, 1996.

Sales for the fourth quarter of 1996 were $20,711,000 compared
to $20,075,000 for the same period in 1995. The Company's net
loss, excluding non-cash charges and reorganization expenses, was
$2,233,000 or $0.33 per share. After deducting non-cash charges
of $4,559,000 and reorganization expenses of $1,053,000, the net
loss was $7,845,000, or $1.18 per share, compared to a net loss
of $2,347,000, or $0.35 per share in the prior year. Weighted
average shares outstanding were 6,676,000 in both periods.

For the year ended Dec. 31, 1996, sales were $87,798,000
compared to $87,351,000 for the same period in 1995. The net loss
was $29,908,000, or $4.48 per share, including non-cash charges
of $13,217,000, reorganization expenses of $2,147,000, and the
write- off of deferred income taxes of $5,093,000. The net loss
in the prior year was $4,694,000, or $0.70 per share.

On July 17, 1996, the company filed a petition for
reorganization under Chapter 11 of the Federal Bankruptcy Code
and is currently operating its consolidated business as
debtor-in- possession.

Sales in both the fourth quarter and for the year 1996 were
slightly ahead of year earlier levels. Gross margins, excluding
the impact of non-cash charges, were improved for the 1996 fourth
quarter in comparison to the prior year as a result of reduced
manufacturing overhead costs, while the full year compared
unfavorably due primarily to higher raw material costs following
the bankruptcy filing, as well as the impact of an unfavorable
product mix.

Since the bankruptcy filing, the Company has made substantial
progress in its reorganization, including 1) obtaining
post-petition financing which has supported the continued
operations of the business without interruption, 2) increasing
cash flows through a number of operational changes such as
personnel layoffs and negotiated union concessions, 3) evaluating
the Company's strategic direction and cost structure in order to
refocus the Company around its core products and competitive
strengths, resulting in a decision to discontinue certain product
lines and to pursue the divestiture of its cotton products
business, 4) offsetting the effect of certain customer account
losses through a renewed sales effort and focus on profitable
core product lines, and 5) making substantive progress in
developing a formal plan of regorganization. In connection with
this strategic and cost evaluation and the decision to divest its
cotton products business, the Company recorded non-cash charges
in 1996 totalling $13,217,000. These charges included provisions
for the allowance for doubtful accounts, the reassessment of the
carrying value of certain machinery and equipment related to
product lines intended for divestiture, certain inventory
valuation adjustments and provisions for the reduction of related
goodwill and other intangible assets.

American White Cross, Inc. manufactures and markets a wide
variety of health and personal care products. The Company's
principal products consist of primarily of 1) first aid products,
including adhesive bandages, medical tapes, sterile pads and
first aid kits, and 2) cotton products, including cotton swabs,
cosmetic puffs, rounds and squares, sterile cotton balls and
cotton coil used in the packaging of drugs and vitamins in
bottles. The company also sells adhesive bandages under its own
national brands, including Looney Tunes(TM) (marketed under
license from the Warner Bros. Division of Time Warner
Entertainment Company L.P.) and STAT- STRIP(R) (easy opening


                  AMERICAN WHITE CROSS, INC. AND
                     CONSOLIDATED RESULTS OF
                  (In thousands, except per share

                                   Quarter Ended 

                                   Year Ended 

        Sales                        $20,711    
        $20,075      $87,798 $87,351

        Net loss                     $(7,845)(1)
        $(2,347)     $(29,908)(2) $(4,694)

        Net loss per share           $(1.18)     
        $(0.35)      $(4.48) $(0.70)

        Weighted average shares 
         outstanding                   6,676     
         6,676         6,676

        (1) Includes non-cash charges of $4,559
        related to the Company's strategic and
        cost evaluation following its Chapter 11
        filing and $1,053 of Chapter 11
        professional fees.

        (2) Includes non-cash charges of $13,217
        related to the Company's strategic and
        cost evaluation following its Chapter 11
        filing, $2,147 of Chapter 11 professional
        fees and $5,093 related to the write-off
        of deferred tax assets.

Chairman (714) 248-8900 or Tom Rallo Sr. Vice President, Finance
and Administration (860) 779-4114 or IR CONTACT: June
Filingeri/Melissa Garelick PRESS: Stacy Berns Morgen-Walke
Associates (212) 850-5600

Bullet-Cougar Golf Corporation Names New

SANTA ANA, Calif., March 17, 1997 - Bullet-Cougar Golf
Corporation announced today that Robert M. Freedman has assumed
the positions of President and Chief Executive Officer, effective
immediately. Mr. Freedman will also serve on the Company's Board
of Directors. Mr. Freedman stated that the Company intends to
attempt to reorganize under Chapter 11 of Title 11 of the United
States Code, (the Bankruptcy Code), and to seek new investment
capital. Mr. Freedman replaces John A. Haas, who resigned as
President and CEO.

Mr. Freedman is a business crisis management and financial
restructuring professional based in Los Angeles. Previously, he
was a member of the High Yield and Convertible Securities
Department of Drexel Burnham Lambert, Inc. Prior to that, he
served as an equity investor with BancBoston Ventures and
BancBoston Capital, investment subsidiaries of the First National
Bank of Boston, and with Wolfensohn Partners, L.P., a New York
venture capital firm.

Headquartered in Santa Ana, California, Bullet-Cougar Golf
Corporation is a full-line manufacturer and distributor of golf
equipment and accessories, which include clubs, bags and golf
balls. On January 17, 1997, Bullet-Cougar filed for Chapter 11
bankruptcy protection. Bullet-Cougar is the 100%-owned and
principal operating subsidiary of Bullet Sports international,
Inc. (Nasdaq SmallCap: PARR).

SOURCE Bullet-Cougar Golf Corporation /CONTACT: Bullet-Cougar
Golf Corporation Public Communications Dept., 714-966-0310/

Wabash National Corporation Announces Acceptance of Bid to
Purchase Certain Fruehauf Assets

LAFAYETTE, Ind., March 17, 1997 - Wabash National Corporation
(NYSE: WNC) announced today that the Company's bid to purchase
certain assets (the "Assets") of href="chap11.fruehauf.html">Fruehauf Trailer Corporation
("Fruehauf") has been accepted by Fruehauf. The
proposal, valued at approximately $52 million, includes
substantially all of the remaining Fruehauf Assets other than a
manufacturing plant in Mexico. The Assets included in the
proposal are the Fruehauf name, all patents and trademarks,
retail outlets in 31 major metropolitan markets, the aftermarket
parts distribution business based in Grove City, Ohio, a
specialty trailer manufacturing plant in Huntsville, Tennessee,
and a trailer manufacturing plant in Ft. Madison, Iowa. The
proposal is subject to the approval of the U.S. Bankruptcy Court
in Wilmington, Delaware.

Commenting on the proposal, Jerry Ehrlich, President and CEO,
stated, "This proposal, if approved, will fit well by
combining Wabash National's leading market share in the large
fleet business with the largest retail distribution network in
the industry. By combinitg the two aftermarket parts programs, we
will have a parts and service operation approximating $100
million in revenues. It is estimated that approximately 20% of
the nation's trailers in service today are Fruehauf trailers and
approximately 20% of trailers being produced currently are
Wabash. The retail stores will also provide an outlet for used
trailers generated by the Wabash National large fleet business
which is expected to increase as fleets convert to Wabash's new
proprietary composite plate trailer. The Tennessee plant will
continue to provide specialty products including dump trailers,
which are marketed through the retail outlets. It is expected
additional synergies will be realized including increased
penetration in the refrigerated trailer market. We expect this
purchase, if approved, will have a positive impact on earnings
per share and will enhance Wabash National's already investment
grade balance sheet."

Wabash National Corporation designs, manufactures and markets
standard and customized truck trailers. The Company is the
largest U.S. manufacturer of truck trailers, the leading
manufacturer of both composite trailers and aluminum plate
trailers, and through its RoadRailer(R) products, the leading
manufacturer of bimodal vehicles.

SOURCE Wabash National Corporation /CONTACT: Donald J. Ehrlich
of Wabash National Corporation, 317- 449-5310/

Grossman's announces store openings

CANTON, Mass.--March 17, 1997--Grossman's Inc. (Nasdaq-GROS)
announced the opening of two new Mr. 2nd's Bargain Outlet stores,
located at Harter and Folt Streets in Herkimer, New York and
Ulster Avenue, Route 9W in Kingston, New York.

Mr. 2nd's Bargain Outlet stores offer a cost-effective
alternative to traditional home improvement centers. These no-
frills, low overhead stores offer steep discount pricing on an
everyday basis, specializing in close-outs, seconds and
over-stocks in a wide range of home improvement and building
related merchandise.

Thomas A. Ford, President of Mr. 2nd's Bargain Outlet, stated,
"These two stores are the beginning of a planned expansion
of our Mr. 2nd's Bargain Outlet division. Two additional stores
are scheduled to open later this year. As in all of our stores,
these newest outlet locations feature incredible pricing on many
brand name products. Truckloads of new merchandise are always
arriving, and the bargains our customers will find are constantly

Grossman's recently announced that it is preparing to file for
protection from creditors under Chapter 11 of the U.S. Bankruptcy
Code. Proceedings under Chapter 11 may affect planned future
store openings.

Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page: 2nd's
Bargain Outlet maintains a web site for product information,
store locations and feedback:

http://www.bargain-outlets.comGrossman's Inc.
operates 15 stores under the name Contractors' Warehouse in
California, Indiana, Kentucky and Ohio, and 28 stores under the
name Mr. 2nd's Bargain Outlet in Massachusetts, New York and
Rhode Island.

CONTACT: Grossman's Inc. Steven L. Shapiro (617) 830-4020 or
Mr. 2nd's Bargain Outlet Division Thomas A. Ford (617) 830-4303

Jayhawk Acceptance Corporation Reaches
Agreement as to Its Continued Use of Cash Collateral

DALLAS, TX - March 17, 1997 - Jayhawk
Acceptance Corporation
(Nasdaq: JACCQ) announced that it
reached an agreement with its primary lenders to an extension of
the current order authorizing Jayhawk's use of the lender's cash
collateral. Subject to Bankruptcy Court approval, this agreement
would authorize Jayhawk's use of the lenders' cash collateral
through April 30, 1997 on basically the same terms and conditions
as the current order. This agreed extension allows Jayhawk to
continue funding its operations and purchases of installment sale
contracts while Jayhawk continues its discussions with its
primary lenders regarding the basis upon which they would support
the plan of reorganization being prepared by the Company. The
Company anticipates filing a proposed plan of reorganization
which would provide for full payment of its indebtedness and
contractual obligations. Jayhawk also announced that Jack Smith,
a director of the Company since its inception and the former
President and Chief Operating Officer of Westcott Communications,
Inc., has been elected to the position of President and Chief
Operating Officer of the Company.

Jayhawk Acceptance Corporation is a specialized financial
services company headquartered in Dallas, Texas.

SOURCE Jayhawk Acceptance Corporation /CONTACT: Virginia L.
Cleveland of Jayhawk Acceptance Corporation, 972-663-1238/

Reddi Brake Supply Corp. announces
involuntary bankruptcy petition

VENTURA, Calif.--March 17, 1997--Reddi Brake Supply Corp.
(NASDAQ NMS:REDI) Monday announced that an involuntary petition
for reorganization under Chapter 11 of the Federal Bankruptcy
Code was filed against its operating subsidiary, href="chap11.reddi.html">Reddi Brake Supply Company Inc.

The involuntary petition was filed by a group of four
unsecured creditors of the subsidiary in the United States
Bankruptcy Court for the Central District of California in Santa
Barbara, Calif. on Monday, March 17, 1997.

For further information, contact Sandford T. Waddell, chief
financial officer of the company at 805/644-8355.

CONTACT: Sandford T. Waddell, CFO 805/644-8355

Stratosphere Corporation announces
consolidated cash flow pursuant to restructuring agreement

LAS VEGAS, NV--March 17, 1997--href="chap11.stratosphere.html">Stratosphere Corporation
(NASDAQ: TOWVQ) today announced pursuant to a requirement in the
restructuring agreement consented to by an Ad Hoc Committee
representing the holders of more than 57% of Stratosphere 14 1/4%
First Mortgage Notes that Consolidated Cash Flow (as defined in
the restructuring agreement) for the four-weeks ended Feb. 23,
1997, was $983,421. The average Consolidated Cash Flow (as
defined in the restructuring agreement) for the five-months ended
Feb. 23, 1997, was $1,615,736. The restructuring agreement was
filed with the Securities and Exchange Commission on Form 8-K,
Jan. 6, 1997.

The definition of Consolidated Cash Flow included in the
restructuring agreement includes many adjustments to consolidated
net income and because of such adjustments the information
presented in this release should not be interpreted as an
indication of consolidated net income or future results. The
amount reported in this release is also subject to potential
future adjustments resulting from the year-end annual audit. In
addition, Consolidated Cash Flow is not intended to represent and
should not be considered an alternative to, or more meaningful
than, net income from operations as an indicator of the Company's
operating performance or to cash flows from operating activities
as a means of liquidity.

As previously announced, on Monday, Jan. 27, 1997, the Company
filed a petition under Chapter 11 of the United States Bankruptcy
Code with the United States Bankruptcy Court in Las Vegas,
Nevada. The Company does not believe that the bankruptcy filing
will, in the long term, adversely affect daily operations or
guest services.

Stratosphere Corporation is a casino/hotel/entertainment
complex located at the north end of the Las Vegas Strip. The
complex is centered around the Stratosphere Tower, the tallest
free-standing observation tower in the United States.

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.

CONTACT: Stratosphere Corporation Tom Lettero, 702/383-5207

Today's Man Selects Salomon Brothers As
Strategic Advisor In Restructuring Process

MOORESTOWN, N.J., March 17, 1997 - href="chap11.todays.html">Today's Man, Inc. (Nasdaq: TMANQ),
announced today that it has selected Salomon Brothers Inc for
investment banking advice as the Company progresses with its
reorganization plan. Salomon Brothers will provide Today's Man
with financial advisory and investment banking services including
but not limited to assistance in obtaining financing for a
stand-alone plan of reorganization. Salomon Brothers will also
assist with the formulation, negotiation and implementation of a
consensual plan.

"Our recent operating performance supports our belief
that we are successfully addressing the operational and
merchandising issues that contributed to Today's Man's decision
to seek Chapter 11 protection," said David Feld, Chairman
and Chief Executive Officer of Today's Man. "The retail and
reorganization expertise at Salomon Brothers will be a strategic
advantage as we continue to develop a complete operational and
financial plan of reorganization designed to balance the needs of
all major stakeholders and ultimately, to emerge from Chapter 11

The agreement with Salomon Brothers takes effect immediately,
subject to court approval.

Today's Man, Inc. currently operates 25 menswear superstores
in the New York, Philadelphia, and Washington markets, offering a
wide selection of tailored clothing, furnishings, sportswear and
shoes at everyday low prices.

SOURCE Today's Man, Inc. /CONTACT: Frank E. Johnson, Vice
President & C.F.O, 609-722- 6380 or David Feld, Chairman of
the Board & C.E.O, 609-722-6340, both of Today's Man, Inc.,
or Michael W. Kempner,, or Carreen Winters,, both of MWW/Strategic Communications, Public
Relations, 201-507- 9500/