TCR_Public/970331.MBX



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InterNet Bankruptcy Library - News for March 31, 1997







Bankruptcy News For March 31, 1997




        
  1. Dave & Buster's Makes Announcement

  2.     
  3. Champion Parts, Inc. Announces
            Tentative Restructuring Plan, Fourth Quarter Results

  4.     
  5. Coram Announces 1996 Year End Results,
            Issues Update on IHS Merger






Dave & Buster's Makes Announcement



DALLAS, TX - March 31, 1997 - Dave & Buster's, Inc.
(Nasdaq: DANB) announced today that it was advised that Edison
Brothers Stores, Inc. (former Dave & Buster's parent
corporation) had filed its disclosure statement in connection
with Edison's bankruptcy proceedings. The disclosure statement
identifies a possible claim on behalf of Edison creditors to
recover the value of certain real property owned by Dave &
Buster's. No such claim has been asserted against Dave &
Buster's to date. Dave & Buster's believes that any such
claim would be without merit and intends to vigorously defend any
claim if made.



Co-Founder of Dave & Buster's, Dave Corriveau, said
"Since the filing of the Edison bankruptcy in 1995, we and
our legal counsel have thoroughly analyzed any potential
financial or legal exposure to our company. Based upon this
review, we have concluded that Dave & Buster's would not have
any liability to the Edison creditors relating to any of its
owned real property. The Edison disclosure statement does nothing
to change our conclusions. In a nutshell, we believe any such
claim would be groundless."



Added Co-Founder, Buster Corley, "Even if such claim were
to be made the ultimate court resolution could be years away. In
the meantime, D & B's rapid expansion program across America
will continue."



SOURCE Dave & Buster's, Inc. /CONTACT: Chas Michel,
Vice-President/Chief Financial Officer of Dave & Buster's,
Inc. 214-357-9588/






Champion Parts, Inc. Announces
Tentative Restructuring Plan, Fourth Quarter Results



OAK BROOK, Ill., March 31, 1997 - Champion Parts, Inc. (CREB)
announced today that it has reached a preliminary understanding
with a panel representing certain of its unsecured trade
creditors. The understanding would provide for the company to pay
approximately $1.7 million for full settlement of approximately
$5.5 million in certain unsecured liabilities. The company
contemplates using existing cash reserves and a proposed
$1,175,000 cash infusion from Raymond G. Perelman, or a company
controlled by him, to complete the transaction. Mr. Perelman is a
current shareholder and director of the company. Mr. Perelman
would obtain 1 million new common shares, warrants to purchase 2
million shares at 50 cents a share of which 1,100,000 would be
callable at $550,000, 1,250,000 shares of cumulative redeemable
7% preferred stock with voting rights and stated value of 40
cents a share and a $275,000 partially secured interest bearing
note in exchange for the cash infusion. Mr. Perelman would also
be allowed to designate a majority of the company's board.



The creditor settlement would be subject to ratification by
the unsecured creditors and finalization of the agreements with
the creditors and Mr. Perelman. If these proposed transactions
are not consummated, the company and creditor panel have
discussed an alternate restructuring plan which would not require
capital infusion, but would include some form of a combination of
cash payment, long-term debt and equity for the creditors. The
company's banks have indicated that they would continue to
finance the company on an interim basis as it attempts to
complete the unsecured creditor settlement.



The company also reported today that for the fourth quarter
ended December 29, 1996, it lost $480,000, or 13 cents a share,
on sales of $6,800,000, compared to the fourth quarter 1995 loss
of $4,950,000, or $1.35 a share, on sales of $6,600,000. For the
1996 fiscal year, the company reported a loss of $1,467,000, or
40 cents a share, on sales of $27,560,000, compared to the 1995
loss of $18,840,000, or $5.15 a share, on sales of $52,950,000.
The 1995 fourth quarter and year-to-date results reflect
$2,900,000 and $7,700,000, respectively, of special charges and
provisions relating to the company's decision to exit certain
product lines. The company's auditors indicated that they will
issue their opinion on the 1996 financial statements reflecting a
going concern qualification.



Champion Parts remanufactures fuel systems, front wheel drive
assembly components and underhood electrical and mechanical
products for the passenger car, agricultural and heavy duty
automotive parts aftermarket.



                                 CHAMPION PARTS, INC.
                                 CONSOLIDATED RESULTS
        


                                                             (Unaudited)
                                     Year Ended         Fourth Quarter Ended
                                Dec. 29,     Dec. 31,    Dec. 29,    Dec. 31,
                                 1996         1995        1996        1995
        Net Sales            $27,560,000 $52,950,000   $6,800,000   $6,600,000
        Earnings (Loss) Before
         Interest and Income
             Taxes                    30,000 (16,500,000)(a) (190,000)
        (4,400,000)(a)
        


        Interest               1,490,000   2,339,000      290,000      550,000
        Income Taxes (Benefit)     7,000       1,000           --           --
        Net Loss              (1,467,000)(18,840,000)    (480,000)
(4,950,000)
        Net Loss Per Common
         Share                    $(0.40)     $(5.15)      $(0.13)
$(1.35)
        Average Shares
         Outstanding           3,655,266   3,655,266    3,655,266    3,655,266
        


            (a) 1995 fourth quarter and year-to-date earnings reflect
        special charges and provisions of $2,900,000 and $7,700,000,
        respectively, related to the company's decision to exit certain
        product lines.
        


SOURCE Champion Parts, Inc./CONTACT: Mark Smetana, vice
president-finance of Champion Parts, 708-573-6600, or Alex Tassos
of Alex Tassos & Associates, 619-737-7000/






Coram Announces 1996 Year End Results,
Issues Update on IHS Merger



DENVER, CO - March 31, 1997 - Coram Healthcare (NYSE: CRH)
today reported net revenue of $522 million for the year ended
December 31, 1996, compared to $602.6 million in annual net
revenue posted in 1995. Net loss per common share for 1996 was
$2.05 per share, compared to a loss of $8.39 per share in 1995.



"This was a year of remarkable improvement in Coram's
financial health," said Donald J. Amaral, Coram's president
and chief executive officer. "Net revenue declined by 13%,
year-to-year due to our pruning of unprofitable business and the
growth in our managed care segment, but gross profit grew by $17
million, 12% over the prior year. In 1996, SG&A expense
decreased by over $28 million compared to 1995. Recurring EBITDA
went from a negative $22.6 million in 1995 to a positive $53.3
million in 1996. In 1996 the company increased cash flow from
operations by $77 million over 1995 results and reduced bank and
other debt by approximately $82 million.



"We accomplished many of the goals we announced for 1996,
which were stabilizing revenues, improving collections, reducing
costs and continually improving quality," Amaral said.
"We stabilized revenues and acquired new managed care
business. We established new ties with prestigious medical
centers and integrated health systems. Nearly 40% of Coram
branches surveyed by the JCAH0 have received accreditation with
commendation, impressive evidence of the efficacy of our quality
assurance program. The improvement in cash flow speaks for itself
- going from $17 million negative cash flow to $60 million
positive cash flow from operations in one year."



For the fourth quarter ended December 31, 1996, Coram posted
revenues of $126 million, compared to $153.7 million in the
fourth quarter of 1995. Net loss per common share for the fourth
quarter of 1996 was $0.75, which includes a special charge of $15
million or $.36 per share for the settlement of a class action
suit and related litigation, compared to a loss of $0.45 per
share in the fourth quarter of 1995. Gross profit in the fourth
quarter of 1996 increased by 8% over gross profit recorded in
fourth quarter of 1995. Recurring EBITDA went from a negative
$2.8 million in the fourth quarter of 1995 to a positive $16.5
million in the fourth quarter of 1996.



"In 1996, our efforts were directed at improving quality,
reducing costs, eliminating unprofitable business, improving
collections, and paying down debt - accomplishing a financial
turnaround," Amaral stated. "In 1997, our focus is on
continuing to build and market the specialized programs that will
support revenue growth: our innovative HIV/AIDS programs with
institutions such as Johns Hopkins and The Indiana University
School of Medicine, our transplant services program, our joint
asthma program with National Jewish Center for Immunology and
Respiratory Medicine, our oral and injectable drug chronic care
programs, and our R-Net network management services to payors,
physician groups and integrated health systems."



IHS MERGER UPDATE

On March 30, 1997, Coram and Integrated Health Services executed
an amendment to their October 19, 1996 Plan of Merger, which will
become effective at the close of business on Friday, April 4,
1997 unless either party gives the other prior notice of
cancellation of the amendment. The amendment revises the
previously announced exchange ratio from .2111 shares of IHS
common stock for each share of Coram common stock to .15 shares
of IHS common stock for each share of Coram common stock. IHS has
agreed to pay Coram a fee of $25 million if the merger is not
consummated other than pursuant to certain limited conditions.
The parties have agreed to change the Plan of Merger to provide
that if the merger is not completed on May 31, 1997, it will
terminate on that date unless the termination date is extended by
either party for an additional 60 days.



The Company also announced that its Senior Credit Facility has
been extended until May 31, 1997 and all amounts due the holder
of the Bridge Notes have been deferred until the earlier of the
date of the close of the proposed merger with IHS or March 31,
1998.



This release, in addition to historical financial information,
may contain forward-looking statements that involve risks and
uncertainties. For instance, there is no assurance that Coram and
Integrated Health Services will be able to complete their merger.
The success of the specialized programs the company has developed
depends on the acceptance of the marketplace and on competitive
response. The company's operations involve the risks of intense
competition and changing market forces. Readers are referred to
the documents filed by the Company with the S.E.C., specifically
the last reports on Form 10-K and 10-Q which identify important
risk factors for the Company.



Coram Healthcare, headquartered in Denver, CO, is a leading
provider of alternative site patient care (complex patient care
provided outside the hospital). Coram's mission is to work with
patients, physicians, payors and other health care providers to
develop better models of care for those with serious or chronic
medical conditions.



                             CORAM HEALTHCARE CORPORATION
                    Condensed Consolidated Statement of Operations
                         (In Millions, Except Per Share Data)
        


            Results of Operations        Three Months    Three Months
        Twelve Months
        


                                       Ended            Ended            Ended
                                       Dec. 31,        Sept. 30,
Dec. 31,
                                        1996       1995      1996      1996
        1995
        


         Net Revenue             $126.0    $153.7    $131.2    $522.0
$602.6
         Cost of Services          85.8     116.6      86.6     361.7
459.7
           Gross Profit            40.2      37.1      44.6     160.3
142.9
        


         Selling, General and Administrative
           Expenses                25.9      29.6      26.5     104.2
133.0
         Provision for Estimated Uncollectable
           Accounts                 6.7      12.3       6.8      29.1
68.9
         Amortization of Goodwill   3.6       4.8       3.6      15.3
15.3
         Charge for Long-lived Assets and Acquired Receivables
           Goodwill and other long-
             lived assets             -         -         -         -
166.4
           Valuation of acquired
             receivables              -         -         -         -
37.0
         Provision for Shareholder
          Litigation Settlement    15.1         -       0.3      27.9
   -
         Restructuring Costs          -    (15.2)         -         -
6.2
         Total Operating Expenses  51.3      31.5      37.2     176.5
426.8
        


         Operating Income (loss) (11.1)       5.6       7.4    (16.2)
(283.9)
        


         Non-Operating Expenses,
          Net                    (18.6)    (20.9)    (18.5)    (75.1)
(50.3)
        


         Loss before income taxes
          and minority interest  (29.7)    (15.3)    (11.1)    (91.3)
(334.2)
         Provision (benefit) For
           Income                   0.0        .1     (1.4)    (14.0)
(11.2)
         Minority Interest          1.9       2.2       2.3       7.7
11.0
         Net Loss               $(31.6)   $(17.6)   $(12.0)   $(85.0)
$(334.0)
        


         Net Loss Per Share:    $(0.75)   $(0.45)   $(0.28)   $(2.05)
$(8.39)
         Weighted Average Common
          Shares Outstanding       42.4      40.4      42.2      41.5
39.8
        


                             CORAM HEALTHCARE CORPORATION
                         Condensed Consolidated Balance Sheet
                                    (In Thousands)
        


                                                                    Dec. 31,
        Dec. 31,
        


                                                                        1996
        1995
        


         Assets:
           Cash and cash equivalents                            $15.4
$26.7
           Restricted cash                                        3.9
25.3
           Accounts receivable, net                             106.8
153.8
           Other current assets                                  30.2
50.2
             Total current assets                               156.3
256.0
           Goodwill, net                                        334.4
347.7
           Other assets                                          54.6
84.1
             Total assets                                      $545.3
$687.8
        


         Liabilities and Stockholders' Equity:
           Current liabilities                                  288.8
218.6
           Long-term debt, including revolving lines-of-credit  266.6
439.3
           Other liabilities                                     11.4
11.9
           Stockholders' equity                                (21.5)
18.0
             Total liabilities and stockholders' equity        $545.3
$687.8
        


SOURCE Coram Healthcare/CONTACT: Investor: Richard M. Smith,
Chief Financial Officer, 303-672-8717, or Harriet Albery,
Manager, Planning & Analysis, 303-672-8875, or Media:
Lawrence Watts, Vice President, Corporate Communications,
303-672-8728, all of CORAM HEALTHCARE/