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InterNet Bankruptcy Library - News for May 23, 1997

Bankruptcy News For May 23, 1997

  1. Leslie Fay Reports Results For First
            Quarter Of Fiscal 1997

  3. Franklin Mutual Advisers names Peter
            Langerman chief operating officer

  5. Business Express Airlines

Leslie Fay Reports Results For First
Quarter Of Fiscal 1997

NEW YORK, NY--May 23, 1997--The
Leslie Fay Companies, Inc.
today reported financial results
for the first quarter of its 1997 fiscal year.

For the 14 weeks ended April 15, 1997, Leslie Fay reported net
sales of $142.8 million, compared with $120.6 million in the 13
weeks ended March 30, 1996. The additional week in the 1997 first
quarter accounted for $12.9 of the sales increase. After
adjusting for new businesses in the Sassco Fashions Division, the
company's net sales increased 0.5 percent on a comparable basis
in the 1997 first quarter.

Leslie Fay reported operating income of $13.4 million in the
first quarter of 1997, compared with $7.4 million in the 1996
first quarter. After reorganization costs, interest and financing
costs, and taxes, Leslie Fay reported net income of $11.7
million, or $0.62 per share, in the first quarter of 1997,
compared with $5.9 million, or $0.32 per share, in the year ago

As previously announced on April 21, 1997, the U.S. Bankruptcy
Court confirmed a plan of reorganization submitted jointly by
Leslie Fay and the Official Committee of Unsecured Creditors of
Leslie Fay. This plan provides for the company to emerge from
chapter 11 by separating its Sassco Fashions business from its
core Leslie Fay businesses. Upon consummation of the plan, which
is expected to occur during the second quarter of fiscal 1997,
Leslie Fay's current equity will be extinguished.

Founded in 1947, The Leslie Fay Companies, Inc. is one of the
nation's leading manufacturers of women's apparel, including
dresses, suits and sportswear. Its brand names include Leslie
Fay, Albert Nipon, Kasper for A.S.C., Outlander and HUE.

             The Leslie Fay Companies Inc. and
                         (Debtor In Possession)

              Condensed Consolidated Financial
                 (in thousands, except per share




  Statement of Operations Data:
  Net sales                              
  $142,755       $120,566 Operating income       
                    13,376          7,445
  Interest and financing costs                
  868            502 (Excludes contractual
  interest of
   $4,508 for 1997 and 1996)
  Reorganization costs                        
  468            703 Income before provision for
  income taxes  12,508          6,943 Provision
  for income taxes                   316         
    316 Net income                               
  11,724          5,924 Net income per share of
  common stock       $0.62          $0.32
  Weighted average common
   shares outstanding                      
   18,772         18,772





  Balance Sheet Data:
  Total assets                            
  $244,279        $237,661 Total liabilities     
                     377,911         383,139
  Stockholders' deficit                   
  (133,632)       (145,178)

CONTACT: Kekst and Company Michael Freitag, James Fingeroth

Franklin Mutual Advisers names Peter
Langerman chief operating officer

SHORT HILLS, N.J.--May 23, 1997--Franklin Mutual Advisers,
Inc., the investment adviser for the Mutual Series funds, has
named Peter Langerman, 42, as chief operating officer.

Michael Price, president of Franklin Mutual Advisers,
commented, "Peter has been a key part of the growth and
success of our funds for the past ten years. This really is a
recognition of the role he's been playing for some time and is
part of the continuing process of strengthening our management
structure." Price will continue as chairman and chief
executive officer of Franklin Mutual Advisers.

Langerman joined Franklin Mutual Advisers' predecessor, Heine
Securities Corporation, in 1986. He is a senior vice president
and director of Franklin Mutual Advisers, Inc. and has most
recently served as a senior research analyst for Franklin Mutual.
He is also an executive vice president and director of Franklin
Mutual Series Fund Inc.

Langerman has spent a considerable part of his time at Mutual
working on investments in companies in financial distress and
bankruptcy. Among the notable investments which he has
spearheaded are those in Sunbeam Corporation, Hexcel Corporation
and Zenith Laboratories, Inc.

Prior to joining Heine, Langerman was employed by the law firm
Weil, Gotshal & Manges, where he worked primarily on large
corporate bankruptcies and reorganizations.

Langerman graduated magna cum laude from Yale University,
where he earned a bachelor of arts degree in Russian studies. He
holds a master's degree in accounting from New York University
Graduate School of Business, and received his juris doctor from
Stanford University Law School.

Franklin Mutual Advisers, Inc. is a wholly-owned subsidiary of
Franklin Resources, Inc. Franklin and Heine Securities
Corporation merged businesses in November 1996 and the
newly-formed Franklin Mutual Advisers became the investment
adviser for the Mutual Series funds. Franklin's main business is
the $192 billion Franklin Templeton Group, which now includes the
five Mutual Series funds. Franklin Mutual is located at 51 John
F. Kennedy Parkway, Short Hills, NJ 07078 and Franklin Resources
is headquartered at 777 Mariners Island Blvd, San Mateo, CA

CONTACT: Franklin Mutual Advisers, Inc. Holly Gibson,
415/312-4701 or Mount & Nadler Hedda Nadler, 212/759-4440

Business Express Airlines

DOVER, N.H.---May 23, 1997--Business ExpressAirlines emerged
from Bankruptcy proceedings yesterday after receiving final
approval for the reorganized company from the Department of

This action ends a reorganization process which began on Jan.
22, 1996.

Chairman and Chief Executive Officer, Robert E. Martens stated
"Everyone at BEX is excited about our future and ready to
refocus all of our energies on our product and our customers. We
wish to express our thanks to all of the people who supported us
during this challenging time, especially our employees and our
code share partners -- Delta Air Lines and Northwest

Business Airlines Inc. is the largest regional airline in the
Northeast, offering approximately 340 daily departures with 37
Saab 340 aircraft to twenty-four cities in the Northeast and
Canada from its three hubs at Boston, Logan International
Airport, New York's LaGuardia and John F. Kennedy Airports.
Business Express Airlines is one of the most experienced regional
airlines in the world, with 35 years of operational experience in
the Northeast. The airline operates as both a Delta Connection
and a Northwest Airlink partner and this summer, will add the
American Airlines code to its Boston operation. The company
employs approximately 1100 people and is headquartered in Dover,

CONTACT: Business Express Airlines Gary Ellmer 603/740-3001