Flagstar contests action
SPARTANBURG, S.C.--June 17, 1997--
(OTC:FLST) said that certain holders of its 10% Convertible
Junior Subordinated Debentures due 2014 have initiated an
involuntary Chapter 11 proceeding against Flagstar Corporation
today. Flagstar believes the action is self-serving and the
company intends to file all necessary pleadings with the
bankruptcy court to enable it to complete its proposed financial
restructuring plan in the most expeditious manner possible.
Flagstar has 20 days to respond to the court filing and will
operate in the normal course throughout this period.
"We believe that the involuntary filing is an
ill-conceived attempt by a very small cadre of bondholders to
advance their own interests at the expense of our other
stakeholders and the restructuring process," said James B.
Adamson, chairman and chief executive officer of Flagstar.
"It will not derail our efforts to produce an orderly and
fair restructuring that will leave us with $1.1 billion less in
debt and the capital structure that we need to finally resume our
growth."
"We also believe that our restructuring plan previously
announced offers these parties more constructive methods of
putting forward their case," said Adamson. "This action
serves no one's interests, not even their own."
At issue is a claim by a small group of Debenture holders that
the class is entitled to more of the value of the newly
reorganized Flagstar - value that is accorded to other impaired
classes of stakeholders under the Company's current restructuring
plan. Flagstar believes that the claims of the group have no
merit, and that the restructuring plan it is currently pursuing
is fair and equitable to all of its stakeholders. Flagstar's plan
has already received preliminary approval of an ad hoc committee
of the Company's Senior Subordinated debtholders, and has been
accepted by the Company's major shareholder. A Form S-4 filing
outlining Flagstar's own plan of restructuring was declared
effective by the Securities and Exchange Commission earlier this
month, and the Company has mailed consent solicitation packages
to all impaired classes of stakeholders.
Flagstar stressed that the restructuring plan and the action
initiated today only involve the parent companies of Flagstar and
do not affect in any way the subsidiaries that operate the
Company's restaurants. The Company expects that all of Flagstar's
corporate operations will continue to conduct business as usual
throughout the process, with employees paid in-full and on-time,
and benefits continuing.
Flagstar is one of the nation's largest restaurant companies,
with over 3,200 moderately-priced restaurants and annual revenues
of approximately $2.7 billion. Flagstar owns and operates the
Carrows, Coco's, Denny's, El Pollo Loco and Quincy's Family
Steakhouse restaurant brands and is the largest franchisee of
Hardee's.
CONTACT: Flagstar Companies Larry Gosnell (Investor
Relations), 864/597-8658 Karen Randall (Media), 864/597-8440
IFusion Com Corporation Soliciting
Offers for its ArrIve(TM) Push Technology
NEW YORK, June 17, 1997 - IFusion Com Corporation, which
developed ArrIve(TM), a leading-edge "push" technology
for the Internet announced that it is soliciting offers for the
purchase of its assets. ArrIve is a multi-channel content
delivery system that applies distributive computing technology to
deliver branded multimedia content to end users in a bandwidth
efficient manner. The system is specifically designed to allow
users to customize the content they receive, and to operate
within multiple narrow and broadband (i.e., satellite, cable,
xDSL) delivery systems. The software consists of the client,
network systems services, channel server, and authoring tools.
The assets to be sold include the underlying software source code
for ArrIve, for which a U.S. patent application has been filed;
all right, title and interest in and to the tradename ArrIve, all
company owned computer hardware and software; and all other
assets used in connection with IFusion's business (collectively,
the "Assets"). IFusion Com Corporation filed for
protection under chapter 11 of the Bankruptcy Code in late March.
Offers to purchase the Assets should be submitted and received
by Togut, Segal & Segal, counsel to IFusion Com Corporation,
One Penn Plaza, New York, New York 10119; fax number,
212-967-4258; Attn: Albert Togut, Esq., by no later than June 26,
1997 at 5:00 p.m. Offers will be considered at a hearing to be
held at 2:00 p.m. on July 1, 1997 at IFusion's offices, 79 Fifth
Avenue, 7th Floor, New York, New York 10003, or at any
adjournment, continuation or extension thereof. All offers are
subject to Bankruptcy Court approval.
SOURCE IFusion Com Corporation /CONTACT: Albert Togut, Esq.,
or Frank A. Oswald, Esq., 212- 594-5000, for IFusion Com/
Perot Systems' bid approved to purchase selected assets of
DALLAS, TX--June 17, 1997--PSC Technology Phoenix Inc. (a
subsidiary of Perot Systems Corp.) today announced that its bid
to purchase selected assets and intellectual property of
filed Chapter 11 bankruptcy protection on May 9, has been
approved by the United States Bankruptcy Court District of
Massachusetts.
The completion of the sale is anticipated before the end of
June. These assets, in addition to hiring 58 of Nets Inc.'s
engineering team, greatly accelerates Perot Systems' strategy to
deliver business-to-business electronic commerce systems,
services and online market ventures. Perot Systems plans to
partner with its clients to create vertically integrated value
webs and web arenas consisting of commerce, content and
collaborative capabilities in narrowly defined market segments.
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Perot Systems is a leading information technology services and
business transformation company with 1996 revenues of $600
million. Perot Systems serves major clients in the financial
services, healthcare, energy, telecommunications, manufacturing,
insurance and travel and leisure industries in North America,
Europe and Asia. Privately owned, Perot Systems has more than
5,000 employees worldwide. More information can be found on Perot
Systems through the World Wide Web at
http://www.perotsystems.com.
CONTACT: Perot Systems Corp. Tara Sexton, 203/406-2953
tara.sexton@ps.net
StreamLogic Corp. announces
preliminary results for fourth quarter, fiscal year ended March
28
MENLO PARK, Calif.--June 17, 1997--StreamLogic Corp.
(NASDAQ:STLC) announced today that its preliminary results for
the fourth quarter and for the fiscal year ended March 28, 1997
(unaudited) were losses of $20.8 million and $16.1 million,
respectively.
The loss for the fiscal year includes an extraordinary gain of
$24.1 million in the third quarter.
StreamLogic further announced that, in order to conserve its
remaining cash resources, the company is seeking to modify
payment terms with some of its vendors and that it likely will
suspend payment on certain accounts.
The company also was unable to make its scheduled principal
and interest payment of approximately $120,000 dues as of June
15, 1997, under the company's 6 percent Convertible Subordinated
Debentures due 2012. Unless cured within 30 days, this would
constitute an event of default under the Debentures, resulting in
acceleration of the underlying indebtedness of $4,789,000.
Based on these factors and the substantial likelihood of
continuing operating losses for the first quarter of fiscal 1998,
StreamLogic is considering various restructuring alternatives,
including the possibility of seeking protection under the federal
bankruptcy laws, which could materially and adversely affect
shareholder value. It is also likely that the company's common
stock will be removed from listing on NASDAQ.
Certain statements contained in this release may be deemed
"forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995.
There are many factors that could cause the events in such
forward looking statements not to occur, or to occur in a manner
materially different from that contemplated by such forward
looking statements, including a decision not to pursue a
reorganization under the bankruptcy laws or the inability of the
company to implement a plan to restructure its indebtedness.
Accordingly, actual results could differ materially from those
contemplated in such forward looking statements.
CONTACT: StreamLogic Corp. Mark M. Glickman, 415/833-4833