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InterNet Bankruptcy Library - News for May 8, 1997

Bankruptcy News For May 8, 1997

  1. Harvard Industries, Inc. Files For
            Bankruptcy Protection, Reports Second-Quarter Results

  3. PacifiCorp Offers $75 Million
            Enhanced Value to Big Rivers

Harvard Industries, Inc. Files For
Bankruptcy Protection, Reports Second-Quarter Results

TAMPA, Fla., May 8, 1997 - Harvard Industries, Inc., a major
producer of OEM automotive parts and accessories, today announced
that it had filed for protection under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
Delaware. The action was precipitated by continued operating
losses at Harvard's Doehler-Jarvis subsidiary, and the need to
reorganize the Company's capital structure, according to
Harvard's chairman, John W. Adams.

"While Doehler-Jarvis, a pioneer in the castings
industry, may be profitable in the long run, Harvard Industries
cannot support this subsidiary's current capital requirements and
still adequately finance its profitable subsidiaries," Adams

"We believe this filing to be a prudent action, which
will ultimately ease Harvard's debt burden, increase the
Company's liquidity, and permit us to focus on our highly
successful core businesses," Adams said.

"It is our intention to move forward under court
protection with submission of a reorganization plan as quickly as
possible. We intend to propose full payment to our suppliers as
part of our plan, and expect to emerge from the process with
substantially reduced debt. Harvard Industries is open for
business today and will be in the future. We intend to meet our
obligations to our customers, our vendors, our employees and our
shareholders as a leading supplier to the automotive and related
industries," said Adams.

Harvard has secured a commitment for $175 million in
Debtor-In-Possession financing, which includes the pre-petition
facility, enabling it to support continuing operations at its
subsidiaries, pay its suppliers on an ongoing basis and continue
prompt delivery of automotive components to customers.

The Company's core business consists of Harvard's
Kingston-Warren, Hayes- Albion and Trim Trends subsidiaries,
employing approximately 4300 people. These subsidiaries - which
account for over $400 million in annual sales - manufacture
automotive glass- run channels and body sealing systems, cast
metal products and fabricated metal components for automobiles
and light trucks manufactured in North America and abroad.

The Company is seeking buyers for its Doehler-Jarvis
subsidiary - which manufactures die-cast metal automotive
components; Harman Automotive - a manufacturer of outside
rearview mirror systems and exterior door handles; and Harvard
Interiors - a manufacturer and assembler of office furniture and
defense components. The Company has engaged Houlihan Lokey Howard
& Zukin to assist with the sale of Doehler-Jarvis, and to
provide financial advisory services.

Harvard Reports Results For Second Quarter Ended March 31,
1997 Consolidated net sales for the quarter ended March 31, 1997
amounted to $209,226,000, compared with $200,821,000 for the
quarter ended March 31, 1996.

After deducting accrued dividends and accretions related to
the Company's 14 1/4% PIK Preferred Stock of $4,224,000 and
$3,712,000 for the quarters ended March 31, 1997 and 1996,
respectively, the net loss for the quarter ended March 31, 1997
attributable to common shareholders was $172,378,000, or a net
loss of $24.57 per common share, compared with $24,674,000 or a
net loss of $3.53 per common share, for the quarter ended March
31, 1996.

Consolidated net sales for the six months ended Match 31, 1997
amounted to $396,487,000, compared with $411,357,000 for the six
months ended March 31, 1996.

After deducting accrued dividends and accretions related to
the Company's 14 1/4% PIK Preferred Stock of $8,448,000 and
$7,422,000 for the six months ended March 31, 1997 and 1996,
respectively, the net loss for the six months ended March 31,
1997 attributable to common shareholders was $206,770,000, or a
net loss of $29.47 per common share, compared with $30,108,000 or
a net loss of $4.30, for the six months ended March 31, 1996.

The Company attributes the net loss primarily to the continued
operational inefficiencies at the Company's Doehler-Jarvis and
Harman Automotive subsidiaries, impairment of long-lived assets,
as well as continued high interest expense and other expenses.

This release contains forward-looking statements. Additional
written or oral forward-looking statements may be made by the
Company from time to time, in filings with the Securities and
Exchange Commission or otherwise. Such forward-looking statements
are within the meaning of that term in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such statements may include, but not be limited to,
projections of revenues, income or losses, capital expenditures,
plans for future operations, including the possible sale of
underperforming operations, financing needs or plans, plans
relating to products or services of the Company, as well as
assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified.
Consequently, future events and actual results could differ
materially from those set forth in, contemplated by, or
underlying the forward-looking statements. Other factors that
could contribute to or cause such differences include the effects
of the bankruptcy filing upon suppliers, vendors and customers,
unanticipated increases in launch and other operating costs, and
a reduction and inconsistent demand for passenger cars and light

Harvard Industries, Inc., through its subsidiaries, designs,
develops and manufactures a broad range of components for
original equipment manufacturers, producing cars and light trucks
in North America and abroad.

                               INDUSTRIES, INC.
                             CONSOLIDATED BALANCE
                        MARCH 31, 1997 AND
                        SEPTEMBER 30, 1996
                              (In thousands of

                                      March 31,  


        ASSETS                       (Unaudited)

        Current assets:
         Cash and cash equivalents     $2,448    
                     $ 1,107 Accounts receivable,
         net     100,762                  99,581
         Inventories                   57,896    
                      53,901 Prepaid expenses and
          current assets                2,224    
            Total current assets      163,330    

        Property, plant and equipment,
         net                          275,623    
        Intangible assets, net          5,209    
                    127,250 Other assets, net    
                 34,401                  33,556



        Current liabilities:
         Debt in default             $398,147    
                        $--- Current portion of
          term debt                       ---    
         Accounts payable             102,614    
                      89,073 Accrued expenses    
                  68,959                  66,949
         Income taxes payable           3,582    
           Total current liabilities  573,302    

        Long-term debt                    ---    
                    359,116 Postretirement
         other than pensions          103,385    
        Other                          31,375    
           Total liabilities          708,062    

        14 1/4% Pay-In-Kind
         Exchangeable Preferred Stock,
        ($123,464 liquidation value at
          March 31, 1997 -- includes
          $8,214 of undeclared dividends
          payable September 30, 1997) 122,943    

        Shareholders' deficiency:
         Common Stock, $.01 par value;
          30,000,000 shares authorized;
          shares issued and outstanding:
          7,017,767 at March 31,
          1997 and 7,014,357 at
          September 30, 1996               70    
        Additional paid-in capital     33,820    
                     42,245 Additional minimum
         liability                    (1,767)    
        Foreign currency translation
         adjustment                   (1,935)    
        Accumulated deficit         (382,630)    
           Total shareholders'
             deficiency             (352,442)    
        Commitments and contingent


                               INDUSTRIES, INC.
                        CONSOLIDATED STATEMENTS
                        OF OPERATIONS
                  THREE AND SIX MONTHS ENDED
                  MARCH 31,1997 AND 1996
              (In thousands of dollars, except
              share and per share data)

                              Three months ended 
                                      Six months

                            March 31,     March
                            31,    March 31,
  March 31,
                              1997          1996

      Sales                 $209,226     
      $200,821     $396,487

        Costs and expenses:
       Cost of sales         209,972      
       196,426      400,434
         Selling, general and
        administrative        14,385       
        11,945       24,590
       Interest expense       12,144       
       10,311       24,332
       Amortization of goodwill3,828        
       2,582        7,656
         Other (income)
        expense, net           1,539         
        (30)        1,797
         Impairment of long-lived
        assets               134,987          
        ---      134,987
            Total costs and
            expenses         376,855      
            221,234      593,796

        Loss before income
       taxes               (167,629)     
       (20,413)    (197,309)
        Provision for income
       taxes                     525          
       549        1,013

      Net loss            $(168,154)    
      $(20,962)   $(198,322)

        PIK preferred dividends
       and accretion          $4,224       
       $3,712       $8,448

        Net loss attributable
         to common
       shareholders       $(172,378)    
       $(24,674)   $(206,770)

        Primary per common and
          common equivalent share:
        Loss per common and
         common equivalent
       share                $(24.57)      
       $(3.53)     $(29.47)

        Weighted average number of
         common and common
         equivalent shares,
       outstanding         7,017,160    
       6,997,157    7,016,126

                               INDUSTRIES, INC.
                        CONSOLIDATED STATEMENTS
                        OF CASH FLOWS
                       SIX MONTHS ENDED MARCH
                       31,1997 AND 1996
                              (In thousands of

                                    March 31,    

                                    March 31,


        Cash flows related to
         operating activities:
         Loss from continuing
          operations               $(198,322)    
         Add back (deduct) items not
           affecting cash and cash
          Depreciation and amortization34,718    
                       25,901 Impairment of
            assets                    134,987    
          Loss on disposition of
            property, plant and equipment
            and property held for sale  1,208    
          Postretirement benefits       3,499    
         Changes in operating assets and
           liabilities of continuing
           operations, net of effects
           from acquisitions and
           reorganization items:
            Accounts receivable       (1,181)    
                          1,871 Inventories      
            1,853 Other current assets       
            (587)                     167
            Accounts payable           13,541    
                        (6,870) Accrued expenses
              income taxes payable      2,166    
            Other noncurrent liabilities4,977    

        Net cash used in continuing
         operations                   (8,989)    

        Cash flows related to investing
         Acquisition of property, plant
          and equipment              (20,313)    
         Cash flows related to
          discontinued operations         204    
         Proceeds from disposition
          of property, plant and equipment395    
         Net change in other
          noncurrent accounts         (2,889)    

         Net cash used in investing
          activities                 (22,603)    

        Cash flows related to
         financing activities:
         Net borrowings under
          financing/credit agreement   38,274    
         Proceeds from sale of stock/
          exercise of stock options        23    
         Repayments of long-term debt   (730)    
                     (1,366) Pension fund
         payments pursuant
          to PBGC settlement agreement(3,000)    
         Payment of EPA settlements   (1,634)    

         Net cash provided by
          financing activities         32,933    

        Net increase (decrease) in
         cash and cash equivalents      1,341    
                    (16,192) Beginning of period
                   1,107                  19,925

        End of period                  $2,448    

SOURCE Harvard Industries, Inc. /CONTACT: Richard T. Dawson,
Harvard Industries, 888-234-7920, or 813-288-5000; or Stephen J.
Kasser, Public Communications Inc., 813-226-2772/

PacifiCorp Offers $75 Million
Enhanced Value to Big Rivers

HENDERSON, Ky., May 8, 1997 - PacifiCorp Kentucky Energy
Company (PKEC), an indirect subsidiary of PacifiCorp (NYSE: PPW),
today submitted a new proposal to Big Rivers Electric
Corporation, valued at $75 million more than a bid submitted by
LG&E in March.

"In keeping with the charge of the U.S. Bankruptcy Court
to maximize value, this proposal adds $75 million to the value of
Big Rivers, when compared to the transaction apparently still
under negotiation between Big Rivers and LG&E," said Don
Furman, president of PacifiCorp Power Marketing, Inc.

In addition, PKEC would waive its claim against Big Rivers,
which it believes exceeds $25 million, bringing the total
enhancement over the LG&E proposal to $100 million.

PacifiCorp and Big Rivers signed an omnibus agreement last
August under which PacifiCorp Kentucky Energy will lease and
operate Big Rivers generation facilities for an annual lease
payment of $30.1 million per year for 25 years. Under the
agreement, Big Rivers buys power from PKEC for its four
distribution cooperative members serving 91,000 retail customers
in western Kentucky. PKEC retains the surplus power and will sell
it into the eastern power markets.

Furman said the new proposal adds $125 million in value over
the previous PacifiCorp offer, including $72 million for a
reduction of the price Big Rivers will pay for power purchased
from PKEC, along with having Big Rivers retain four wholesale
power sales contracts, and $53 million by contracting with
SIGCORP, Inc., Evansville, Ind., the parent company of Southern
Indiana Gas and Electric Company (SIGECO), to handle dispatching,
transmission supervision and maintenance and billing.

Under the proposal, SIGCORP would give preference to Big
Rivers employees in hiring to perform additional workload. In
addition, SIGCORP and PacifiCorp would offer to any displaced Big
Rivers' employees the opportunity to apply for other positions
for which they are qualified.

"In preparing our new proposal, we identified additional
benefits based on the experience PKEC gained during the year of
its interim marketing agreement with Big Rivers, as well as
nearly a year and a half of working jointly with Big Rivers on
reducing workforce requirements and obtaining other
efficiencies," Furman said.

"The interim marketing agreement alone added $4.4 million
in value to Big Rivers during the year it has been in
operation," Furman said.

As to timing, Furman said, "We've submitted basically the
same transaction documents to which the two companies agreed last
year - with the changes made to reflect the enhanced value of our
offer - and are prepared to sign the agreements." They have
been approved by the PacifiCorp Board of Directors.

Big Rivers selected PacifiCorp late in 1995 in a competitive
bidding process to lease and operate its generating facilities as
part of the cooperative's plan to work through its financial

Judge Roberts ordered a new auction process earlier this year
in which only LG&E submitted a bid.

"PKEC, and others, did not submit a bid in the Bankruptcy
Court process because we were unwilling and should not have been
required to waive our legal rights, which Judge Roberts imposed
as a condition of participating in the auction," Furman

"Our proposal today is timely because it appears from the
new plan of reorganization and disclosure statement submitted by
Big Rivers that no agreement has been reached between Big Rivers
and LG&E on the terms of the transaction," Furman said.
"Very few details of the transaction are available."

A hearing is scheduled May 12 in U.S. Bankruptcy Court on the
adequacy of the disclosure statement.

Big Rivers is a generation and transmission cooperative
serving Green River Electric Corporation, Henderson Union
Electric Cooperative, Jackson Purchase Electric Cooperative and
Meade County Rural Electric Cooperative Corporation.

PacifiCorp, based in Portland, Oregon, serves 1.4 million
retail customers in the western United States and has more than
100 wholesale power customers nationwide. In addition, PacifiCorp
has 550,000 retail customers in Australia.

SOURCE PacifiCorp/CONTACT: media, Dave Kvamme, 503-464-6272,
or investors, Angela Hult, 503-731-2192, both of PacifiCorp/
/PacifiCorp press releases available through Company News On-
Call by fax, 800-758-5804, ext. 687526, or at