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InterNet Bankruptcy Library - News for April 30, 1997

Bankruptcy News For April 30, 1997

  1. Anacomp Announces Second Quarter
            Financial Results

  3. Stratosphere's NASDAQ Listing
            Delisted Effective April 29, 1997

  5. Grossman's secures final approval of
            DIP financing

  7. Toy Biz Reports First Quarter Financial

  9. El Paso Electric Announces First
            Quarter Financial Results

Anacomp Announces Second Quarter
Financial Results

SAN DIEGO, Calif., April 30, 1997 - href="chap11.anacomp.html">Anacomp, Inc. (Nasdaq: ANCO), a
leader in information delivery systems and services, today
released second quarter financial results for the period ended
March 31, 1997 that reflect continued strong cash flows and
additionally announced the appointment of Ralph Koehrer to the
position of CEO.

For the three months ended March 31, 1997, Anacomp reported
EBITDA of $20.1 million or 17.6% of revenues, compared to $19.7
million or 17.5% of revenues in the previous quarter excluding a
one- time $3.6 million payment in the first quarter relating to a
long- standing OEM purchase agreement for Anacomp's XFP 2000 COM
(Computer- Output-to-Microfilm) systems. Including the one-time
payment, EBITDA for the first quarter was $23.3 million or 20% of
revenues. In the prior year second quarter, EBITDA was $23.6
million or 18.7% of revenues.

Revenues for the second quarter were $114.5 million, compared
to $112.9 million in the previous quarter excluding the one-time
$3.6 million payment. Including this payment, revenues were
$116.5 in the previous quarter. Revenues in the prior year second
quarter were $125.9 million.

The second quarter results reflect the continued stabilization
of Anacomp's traditional micrographics businesses, supported by
recent acquisitions of selected COM service centers, as well as
improved profits from technical and maintenance services. In
addition, sales of digital products and services showed strong
growth in the quarter as a result of the company's purchase in
late January of Data/Ware Development, Inc., an industry-leading
provider of CD output systems, as well as continued internal
growth of the company's ALVA(TM) CD services.

"We had a good second quarter, and our performance
illustrates Anacomp's continued financial progress," stated
Ralph W. Koehrer, Anacomp's president and chief operating
officer. "EBITDA remained steady for the fourth consecutive
quarter. And although we continue to face maturing market trends
in our traditional COM businesses, recent strategies and
acquisitions have largely offset these trends.

"We also successfully completed two major debt
refinancings during the quarter," continued Koehrer.
"We closed an $80 million refinancing of our senior debt as
well as a $200 million senior subordinated debt refinancing.
These two refinancings significantly improved our near- and
long-term liquidity, and combined they will generate significant
cash interest savings of approximately $6 million per year."

As a result of Anacomp's successful financial restructuring
and emergence from Chapter 11 last year, the company is
amortizing over three-and-a-half years a "reorganization
value" asset of approximately $263 million. This non-cash
reorganization amortization was $18.7 million in the second
quarter. In addition, Anacomp recorded an extraordinary $12.5
million charge to income (net of tax benefits) in the second
quarter relating to the March senior subordinated debt
refinancing. Most of this charge is related to the fact that the
previous senior subordinated notes were recorded at a discount.
As a result, Anacomp posted a net loss of $27.1 million in the
second quarter, compared to a net loss of $12.9 million in the
previous quarter. The second quarter results are not comparable
to the second quarter of fiscal 1996, which occurred during
Chapter 11.

For the six months ended March 31, 1997, Anacomp recorded
EBITDA of $43.5 million or 18.8% of revenues, compared to $46.7
million or 18.2% of revenues in the comparable period a year ago.
Revenues for the current six-month period were $231.0 million,
compared to revenues of $256.2 million in the year-earlier
period. Net income is not comparable.

In other developments, Anacomp today announced the appointment
of Ralph W. Koehrer to become president, chief executive officer,
and a member of the Board effective May 1, 1997. He will succeed
Lang Lowrey, who has chosen to return to school in the Fall to
pursue a degree in Theology but who will continue with the
company in a consulting role.

The change represents the continuation of the company's
consolidation of its executive headquarters into San Diego, as
well as the culmination of succession planning that began with
the recruitment of Koehrer, 51, last year as president and chief
operating officer. Lowrey, 43, who will continue to be based in
Atlanta, will serve as a full-time consultant until October to
ensure a smooth transition, at which time he will commence his
long- term consulting role. Current directors Richard Jackson and
Lew Solomon will become co-chairmen of Anacomp's Board.

"As expected, Ralph has grasped Anacomp's major
opportunities and challenges in a short period, and he already
has made a significant positive impact," said Lowrey.
"He has the ability, vision, energy, and confidence of our
employees to take Anacomp to the next level." Lowrey's
continuing role will be to assist Koehrer and the company in such
areas as acquisitions, major transactions, and strategy.

Koehrer joined Anacomp from Automatic Data Processing, Inc.,
where he served as a corporate officer and as president of ADP's
Information & Processing Services division, the market leader
in providing front- and back- office services to major Wall
Street brokerage firms. He led ADP's successful effort to
introduce new technology solutions into its brokerage processing
service bureaus, and he transformed the focus of its financial
information services business from proprietary hardware systems
to software. Koehrer also implemented growth strategies that
nearly tripled the revenues of ADP's financial information

"Anacomp is well positioned for the future," noted
Koehrer. "We're blessed with loyal customers and employees,
as well as the knowledge, infrastructure and vision to adapt our
businesses to emerging technologies. Our challenge now is to
execute our business plan, and with Lang's continued assistance
and the full support of the Board, I'm confident that we will

Serving customers throughout the world, Anacomp provides
products and services that manage corporate information
throughout its life cycle.

Anacomp's news releases are distributed through PR Newswire
and can be accessed via the Internet ( or or by fax-on-demand (800-758-5804, ext.

SOURCE Anacomp, Inc. /CONTACT: MEDIA: Jeff Withem,
404-876-3361; email: or ANALYST: Nancy
Vandeventer, 800-350-3044 or, both of
Anacomp, Inc./

Stratosphere's NASDAQ Listing
Delisted Effective April 29, 1997

LAS VEGAS, NV - April 30, 1997--href="chap11.stratosphere.html">Stratosphere Corporation (NASDAQ:TOWVQ)
today announced that its appeal to Nasdaq's previous notice of
delisting has been denied. Nasdaq cited the fact that the company
was in the early stages of the bankruptcy proceeding and the
uncertainty of the results of the bankruptcy proceeding as
reasons for denying the company's appeal.

The company anticipates that its stock will trade on the over
the counter bulletin board. Although, at this time the company
has been unable to verify this.

As previously announced, on January 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. 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. -0-

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, Las Vegas Tom Lettero,

Grossman's secures final approval of
DIP financing

CANTON, Mass.--May 1, 1997-- Grossman's
(Nasdaq-GROS) yesterday obtained final approval by the
U.S. Bankruptcy Court for the District of Delaware for debtor-in-
possession ("DIP") financing in the amount of up to $50
million from GDI Company, Inc. An affiliate of GDI, JELD-WEN,
inc., is a major supplier to Grossman's, and three JELD-WEN
executives are three of the seven members of the Grossman's Board
of Directors. The chairman of JELD-WEN is a significant
shareholder of Grossman's, and other JELD-WEN affiliates extended
pre-bankruptcy secured loans to Grossman's.

Pursuant to interim financing orders entered by the Bankruptcy
Court on April 9 and 10, 1997, Congress Financial Corporation,
Grossman's principal pre-bankruptcy revolving credit lender,
continued to extend credit on essentially pre-bankruptcy terms
under a revolving loan facility in the amount of up to $50
million, and GDI made available up to $11 million in advances.
Under the terms of the GDI DIP Facility approved by yesterday's
final order of the Court, GDI purchased Congress' pre-petition
loan position and acquired its pre-petition interest in real
estate and other assets of Grossman's. This GDI DIP Facility is
in addition to the approximately $6 million of real estate
secured pre-bankruptcy loans from GDI. Prospectively, Grossman's
is authorized to utilize cash collateral and draw on the
revolving DIP facility in amounts tied to accounts receivables
and inventory levels. Post-petition advances are secured by all
the assets of Grossman's and a superpriority administrative

Grossman'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. -0-

Statements contained in this release that are not based on
historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Important factors, beyond Grossman's control, that could
cause actual results to differ materially from those in the
forward- looking statements include, but are not limited to, the
need for further Bankruptcy Court approvals, absence of default
under the DIP facility, competition, stability of customer
demand, and the sufficiency of its capital resources. Undue
reliance should not be placed on these forward-looking
statements, which speak only as of the date hereof. Grossman's
undertakes no obligation to publicly release revisions to these
forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.

Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page:

Mr. 2nd's Bargain Outlet maintains a web site for product
information, store locations and feedback:

CONTACT: Grossman's Inc. Steven L. Shapiro, 617-830-4020

Toy Biz Reports First Quarter Financial

NEW YORK, NY - April 30, 1997 - Toy Biz, Inc. (NYSE: TBZ)
today reported results for the first quarter ended March 31,
1997. For the quarter, net sales were $34.4 million with net
income of $475,000, or $0.02 per share, compared to net sales of
$38.4 million and net income of $3.2 million, or $0.12 per share,
in the first quarter a year ago.

Management attributed lower revenues to reduced domestic sales
resulting from concerns among retailers as to the impact of the
bankruptcy of Marvel Entertainment
Group, Inc.
on the future of Toy Biz and the Marvel brand.
The Company believes that sales will continue to be adversely
affected by these concerns. In addition, increases in the
international and import businesses, which typically have lower
margins than domestic, resulted in an overall decline in gross

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.
                    (Dollars in thousands, except per share data)

                                                 Three Months
                                                Ended March 31,
                                                1997       1996

        Net sales                             $34,414    $38,369
        Cost of sales                          19,901     19,733

        Gross profit                           14,513     18,636

        Operating expenses:
        Selling, general and administrative    10,854     11,369
        Depreciation and amortization           2,894      2,144

        Total operating expenses               13,748     13,513

        Operating income                          765      5,123

        Interest income, net                       27        166

        Income before provision for income taxes  792      5,289

        Provision for income taxes                317      2,116

        Net income                               $475     $3,173

        Earnings per share                      $0.02      $0.12

        Weighted average number of common and
        common equivalent shares outstanding   27,756     27,201

SOURCE Toy Biz, Inc./CONTACT: Diane Perry, 212-704-8293, or
Devin McDonell, 212-704-4523, of Edelman Financial/

El Paso Electric Announces First Quarter
Financial Results

EL PASO, Texas, - April 30, 1997 - href="chap11.elpaso.html">El Paso Electric Company (AMEX: EE)
today reported net income applicable to common stock before
extraordinary item of approximately $2.4 million, or $0.04 per
common share, for the quarter ended March 31, 1997. The Company
also reported an extraordinary loss of $2.2 million, net of tax,
attributable to the repurchase of debt at a premium during the
period and the recognition of unamortized issuance expenses
related to the debt. The Company's net income applicable to
common stock for the quarter after this extraordinary item was
$0.2 million, or less than one cent per common share.

The Company stated that it continued to emphasize deleveraging
during the quarter ended March 31, 1997, and reacquired
approximately $50.2 million of first mortgage bonds in open
market transactions. Subsequent to March 31, 1997, the Company
has repurchased an additional $17.5 million of first mortgage
bonds, which brings the total debt reacquired since the Company's
emergence from bankruptcy on February 12, 1996 to approximately
$185.7 million. The repurchase of these first mortgage bonds has
reduced annual interest expense by approximately $14.6 million,
and has reduced the amount of leverage in the Company's capital
structure from approximately 75% on February 12, 1996 to
approximately 69% as of March 31, 1997. The Company intends to
continue to utilize its free cash flow to repurchase its first
mortgage bonds on the open market subject to timing and
appropriate market conditions.

Net income applicable to common stock before extraordinary
item of approximately $2.4 million for the quarter ended March
31, 1997 compares to a net loss applicable to common stock, on a
pro-forma basis for the same period a year ago, of approximately
$0.5 million. The $2.9 million increase in net income applicable
to common stock before extraordinary item is primarily
attributable to: (i) local plant maintenance expense of
approximately $1.3 million, net of tax, incurred in 1996 with no
comparable amount in 1997; (ii) decreased property taxes of
approximately $1.2 million, net of tax; (iii) decreased interest
on long-term debt of approximately $1.7 million, net of tax; and
(iv) partially offset by other fluctuations.

Earnings before interest, taxes, depreciation and
amortization, ("EBITDA") for the three months ended
March 31, 1997 was $53.5 million compared to $50.9 million for
the same period in 1996 on a pro-forma basis. The $2.6 million
increase in EBITDA is primarily attributable to: (i) local plant
maintenance expense of approximately $1.3 million, net of tax,
incurred in 1996 with no comparable amount in 1997; and (ii)
decreased property taxes of approximately $1.2 million, net of

On March 13, 1997, the Company's Board of Directors declared a
dividend of $2.85 per share on the Company's 11.40% Series A
preferred stock. This dividend will be paid on May 1, 1997, to
shareholders of record as of April 17, 1997. The dividend will be
paid in additional shares of Series A preferred stock, with
fractional shares paid in cash.

The Company is an electric utility serving approximately
281,000 retail customers in El Paso, Texas and areas of the Rio
Grande valley in west Texas and southern New Mexico, as well as
wholesale customers in southern California, New Mexico, Texas and
the Republic of Mexico.

El Paso Electric Company's results of operations for the three
months ended March 31, 1997 and for the same period in 1996 on a
pro forma basis are as follows (In thousands except share data):

                                                Three Months Ended March 31,
                                                  Historical    Pro Forma
                                                    1997           1996
        Operating revenues                      $   135,857    $   129,326
        Operating expenses:
          Fuel and purchased and
           interchanged power                       (31,252)       (24,115)
          Other                                     (76,592)       (78,356)
        Interest charges                            (22,495)       (25,223)
        Extraordinary loss on repurchase
         of debt, net                                (2,244)           ---
        Net income                                    3,348          2,479
        Preferred stock dividend requirements         3,149          3,016
        Net income (loss) applicable to
         common stock                                   199           (537)

        Net income (loss) per common share:
          Income (loss) before
           extraordinary item                   $     0.040    $    (0.009)
          Extraordinary loss on repurchase
           of debt, net                              (0.037)           ---
          Net income (loss)                     $     0.003    $    (0.009)

        Weighted average number of common
         shares and common share equivalents
         outstanding (1)                         60,561,337     60,054,981

        (1)  Includes weighted average number of restricted common shares and
             common share equivalents, when dilutive, issued in accordance
             the Company's 1996 Long-Term Incentive Plan.

        Quarter Ended March 31, 1997 (In thousands):


                                                         1997          1996

        Electric kWh Sales:
              Retail Customers                        1,271,729
        1,251,433    1.6%

              Other Utilities                           384,756
        355,851    8.1%

                  Total                               1,656,485
        1,607,284    3.1%

        Operating Revenues:
          Retail Customers                      $   113,313
          Other Utilities                            22,544
              Total                             $   135,857

        Capital Expenditures                    $    14,727

        Cash Interest Payments                  $    21,999

        Depreciation and Amortization           $    21,905

        Federal and State Income Taxes (1)      $     3,552

        EBITDA                                  $    53,544

        (1)  Does not include federal income tax benefit of approximately
             on extraordinary item.

SOURCE El Paso Electric/CONTACT: Media: Teresa Souza,
915/543-5823, or Analysts: Leslie Beal, 915/545-2213, both of El
Paso Electric Company/