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InterNet Bankruptcy Library - News for July 15, 1997







Bankruptcy News For July 15, 1997




        
  1. Mid Am, Inc. Reports Second Quarter
            Earnings Per Share Up 24 Percent

  2.     
  3. Bradlees Receives Six-Month Extension
            of Exclusivity Rights Through February 2, 1998

  4.     
  5. American Western Refining
            Sets Auction






Mid Am, Inc. Reports Second Quarter Earnings
Per Share Up 24 Percent



BOWLING GREEN, Ohio, July 15, 1997 - Mid Am, Inc. (Nasdaq:
MIAM) today announced net income of $7.16 million for the second
quarter of 1997, an increase of $1.05 million or 17.2% from the
$6.11 million earned the second quarter of 1996. Earnings per
share were $.32 ($.31 fully diluted), compared to $.26 ($.25
fully diluted) for the same period in the prior year. Fully
diluted earnings per share for the second quarter of 1997
represent a 24% increase over fully diluted earnings per share
for the second quarter of 1996. Second quarter earnings represent
a return on common shareholders' equity of 16.60% and a return on
average assets of 1.33%. This compares to ratios of 14.08% and
1.14%, respectively, in the second quarter of 1996.



Net income for the six months ended June 30, 1997 was $16.73
million, an increase of $4.01 million over $12.72 million earned
in the same period of 1996. Earnings per share were $.75 ($.71
fully diluted), compared to $.55 ($.52 fully diluted) for the
same period in the prior year. Return on common shareholders'
equity and return on average assets were 19.51% and 1.56%,
respectively, for the six months ended June 30, 1997.



The Company's net interest margin averaged 4.55% for the three
months ended June 30, 1997, which shows significant improvement
over the 4.28% net interest margin reported for the second
quarter of 1996. The strengthening of the margin resulted in an
increase in net interest income of $1.47 million. The increase in
net interest margin is due to higher-yielding earning assets
resulting from increased average loan levels which rose $161
million or 11.1% from June 30, 1996. The improvement in the net
interest margin is also the result of the sale of certain
low-yielding securities during the first quarter of 1997, which,
combined with higher- yielding earning assets, is expected to
sustain the Company's net interest margin at current levels.



The Company is in its third year of its strategic plan to
increase fee income. Non-interest income for the second quarter
of 1997 was $14.0 million, an increase of $2.6 million or 22.6%
from the $11.4 million reported for the same quarter of 1996.
Non- interest income represented 25% of total revenues during the
second quarter of 1997, compared with 16% at the beginning of the
Company's 1995 fee income initiative.



"The results of the second quarter represent core
earnings performance and demonstrate early success in the
Company's business line diversification and growth of
non-interest income," stated Edward J. Reiter, Chairman and
Chief Executive Officer of Mid Am, Inc. "We are optimistic
about our ability to continue to grow the Company's non-interest
income through several new business and strategic
initiatives."



Asset quality ratios continue to demonstrate strong credit
quality, with the ratio of non-accrual loans to total loans of
.38% and the ratio of non- performing loans to total loans of
.40%, as compared with .42% and .42%, respectively, at December
31, 1996. At the end of the second quarter, the Company's
allowance for credit losses was 261% of total non-performing
loans and annualized net charge-offs were .22% of total average
loans, compared with 237% at December 31, 1996 and .25% for 1996,
respectively.



Certain of the Company's bank subsidiaries (Banks) have had
their hearings in the previously disclosed href="chap11.bennett.html">Bennett Funding Group bankruptcy
proceeding. No decision has been rendered in the Banks' cases and
due to the complexity of the issues, management and the Company's
legal counsel are currently unable to form an opinion as to the
likely outcome of the Banks' position in the Bennett bankruptcy
proceeding or whether the Company will incur a material loss.



As of June 30, 1997, the Company had total assets of $2.2
billion, total deposits of $1.8 billion, total loans of $1.6
billion and total shareholders' equity of $175 million. The
Company's total capital ratio and leverage ratio were 7.96% and
9.00%, respectively, at June 30, 1997. The Company's market
capitalization at June 30, 1997 was $405 million.



During the second quarter of 1997, the Company issued $27.5
million of Trust Preferred Securities, which is considered Tier 1
Capital for Federal Reserve purposes. This capital restructuring
will position the Company to enhance its return on common equity
without reducing regulatory capital ratios. For financial
reporting purposes, these securities will be classified as long-
term debt. The proceeds of the Trust Preferred issuance will be
used for general corporate purposes, including the buyback of the
Company's common stock under its repurchase plan for funding
stock option exercises and payment of future stock dividends. As
of June 30, 1997, the Company has repurchased 1.1 million common
share equivalents in its 1997 buyback authorization with proceeds
from the Trust Preferred offering.



At July 14, the Company's common stock closed on the NASDAQ
market system at $20.25 per share, representing an increase of
18.2% from the $17.125 closing price at December 31, 1996.



Mid Am, Inc. is a diversified financial services holding
company headquartered in Bowling Green, Ohio. The Company's
affiliates include Mid American National Bank & Trust
Company, Toledo, Ohio; First National Bank Northwest Ohio, Bryan,
Ohio; American Community Bank, N.A., Lima, Ohio; AmeriFirst Bank,
N.A., Xenia, Ohio; Adrian State Bank, Adrian, Michigan; Mid Am
Recovery Services, Inc., Clearwater, Florida; MFI Investments
Corp., Bryan, Ohio; Mid Am Credit Corp, Columbus, Ohio; Mid Am
Private Trust, N.A., Cincinnati, Ohio; Mid Am Financial Services,
Inc., Carmel,Indiana; Simplicity Mortgage Consultants, Marion,
Indiana; Mid Am Title Insurance Agency, Inc., Adrian, Michigan;
and Mid Am Information Services, Inc., Bowling Green, Ohio.



The information contained in this press release may contain
forward- looking statements which are not historical facts and
which involve risks and uncertainties. Actual result, events and
performance could differ materially from those contemplated by
these forward-looking statements.



        MID AM, INC.
        STATEMENT OF EARNINGS - (unaudited)
  


                                         For Three Months Ended
                                                 June 30,        Percent
        (Dollars in thousands)              1997         1996    Change
  


        Interest income                   $42,398      $40,631     4.3
        Interest expense                   20,062       19,769     1.5
  


        Net interest income                22,336       20,862     7.1
        Provision for credit losses           874        1,076   (18.8)
  


        Net interest income after
          provision for credit losses      21,462       19,786     8.5
  


        Non-interest income
        Trust fees                            499          349    43.0
        Service charges on
          deposit accounts                  2,136        1,684    26.8
        Mortgage banking                    2,897        2,571    12.7
        Brokerage commissions               1,661        2,960   (43.9)
        Collection agency fees              1,322        1,008    31.2
        Net gains on sales
          of securities                        78          461   (83.1)
        Other income                        5,373        2,358   127.9
        Total non-interest income          13,966       11,391    22.6
  


        Non-interest expense
        Salaries and employee benefits     12,879       10,146    26.9
        Net occupancy expense               1,393        1,284     8.5
        Equipment expense                   2,255        2,005    12.5
        Other expenses                      8,311        8,710    (4.6)
        Total non-interest expense         24,838       22,145    12.2
  


        Income before income taxes         10,590        9,032    17.2
        Applicable income taxes             3,427        2,921    17.3
  


        Net income                        $ 7,163      $ 6,111    17.2
  


        Net income available to
          common shareholders             $ 6,974      $ 5,500    26.8
  


        MID AM, INC.
        FINANCIAL SUMMARY - (unaudited)
  


                                         For Three Months Ended
        (Dollars in thousands,                   June 30,        Percent
          except per share data)            1997         1996    Change
  


        Earnings per common share:
          Primary                           $0.32        $0.26    23.1
          Fully diluted                      0.31         0.25    24.0
  


        Cash dividend paid on
          common share                      $0.16        $0.145   10.3
  


        Shares outstanding:
          Average primary              21,732,000   20,995,000     ---
          Average fully diluted        23,342,000   24,323,000     ---
  


        PERFORMANCE RATIOS
  


        Net interest spread - FTE            3.96         3.73     ---
        Net interest margin - FTE            4.55         4.28     ---
        Return on average common
          shareholders' equity              16.60        14.08     ---
        Return on average total assets       1.33         1.14     ---
  


        Average Balances for Three
          Months Ended June 30
        Total assets                   $2,159,032   $2,157,125     0.1
        Loans - net of unearned income  1,606,781    1,445,871    11.1
        Loans held for sale                 7,696       10,656   (27.8)
        Total deposits                  1,735,948    1,808,299    (4.0)
        Common shareholders' equity       168,473      157,115     7.2
        Total shareholders' equity        184,535      191,203    (3.5)
  


        MID AM, INC.
        STATEMENT OF EARNINGS - (unaudited)
  


                                         For The Six Months Ended
                                                 June 30,        Percent
        (Dollars in thousands)              1997         1996    Change
  


        Interest income                   $83,942      $81,570     2.9
        Interest expense                   39,661       40,177    (1.3)
  


        Net interest income                44,281       41,393     7.0
        Provision for credit losses         2,759        1,635    68.7
  


        Net interest income after
          provision for credit losses      41,522       39,758     4.4
  


        Non-interest income
        Trust fees                            880          717    22.7
        Service charges on
          deposit accounts                  4,030        3,312    21.7
        Mortgage banking                    5,224        5,413    (3.5)
        Brokerage commissions               3,141        6,460   (51.4)
        Collection agency fees              2,564        2,022    26.8
        Net (losses) gains on
          sales of securities                (648)         786  (182.4)
        Other income                       18,693        4,235   341.4
        Total non-interest income          33,884       22,945    47.7
  


        Non-interest expense
        Salaries and employee benefits     26,675       20,188    32.1
        Net occupancy expense               2,765        2,575     7.4
        Equipment expense                   4,263        3,908     9.1
        Other expenses                     16,336       17,235    (5.2)
        Total non-interest expense         50,039       43,906    14.0
  


        Income before income taxes         25,367       18,797    35.0
        Applicable income taxes             8,637        6,079    42.1
  


        Net income                        $16,730      $12,718    31.5
  


        Net income available to
          common shareholders             $16,125      $11,468    40.6
  


        MID AM, INC.
        FINANCIAL SUMMARY - (unaudited)
  


                                         For The Six Months Ended
        (Dollars in thousands,                   June 30,        Percent
          except per share data)            1997         1996    Change
  


        Earnings per common share:
          Primary                           $0.75        $0.55    36.4
          Fully diluted                      0.71         0.52    36.5
  


        Cash dividend paid on
          common share                      $0.32        $0.29    10.3
  


        Shares outstanding:
          Average primary              21,511,000   21,017,000     ---
          Average fully diluted        23,555,000   24,430,000     ---
  


        PERFORMANCE RATIOS
  


        Net interest spread - FTE            3.95         3.67     ---
        Net interest margin - FTE            4.52         4.23     ---
        Return on average common
          shareholders' equity              19.51        14.57     ---
        Return on average total assets       1.56         1.18     ---
  


        Average Balances for the
          Six Months Ended June 30
        Total assets                   $2,162,499   $2,162,442     0.0
        Loans - net of unearned income  1,595,645    1,461,321     9.2
        Loans held for sale                 6,276       15,262   (58.9)
        Total deposits                  1,756,490    1,811,004    (3.0)
        Common shareholders' equity       166,679      158,243     5.3
        Total shareholders' equity        187,376      192,939    (2.9)
  


SOURCE Mid-Am, Inc./CONTACT: Dennis L. Nemec, Executive Vice
President, Chief Financial Officer, of Mid-Am, 419-373-6462/






Bradlees Receives Six-Month Extension
of Exclusivity Rights Through February 2, 1998



BRAINTREE, Mass., July 15, 1997 - href="chap11.bradlees.html">Bradlees, Inc. (NYSE: BLE) today
reported that the U.S. Bankruptcy Court has granted the company's
request for a six-month extension of its exclusive right to
propose and file a plan of reorganization.



Bradlees said the extension through February 2, 1998, which
was supported by the company's Official Committee of Unsecured
Creditors, will allow it to assess the benefit from modifications
to its marketing strategy, merchandising mix and presentation,
especially during the important Christmas selling season.



Since the beginning of 1997, Bradlees has made significant
progress toward stabilizing operations and developing and
implementing numerous programs designed to allow the company to
successfully reorganize and emerge from bankruptcy. Bradlees has
reduced operating costs; refocused its merchandising and
marketing strategies closer to those of a traditional discount
retailer; and attracted seasoned merchandising and marketing
senior executives.



The modifications to Bradlees' merchandising and marketing
efforts, which are in varying stages of implementation, include
the re-establishment of lower opening price points in selective
merchandise categories; the reintroduction of certain basic
convenience and commodity items typically carried by discount
stores; the reinstitution of a layaway program; and increasing
the item intensity and price-point orientation of the weekly
advertising circulars.



Peter Thorner, named chairman and chief executive officer
seven months ago, said, "We are pleased with today's
positive court decision. We remain focused on returning Bradlees
to profitability and are confident that our creditors and vendors
- who have consistently demonstrated strong support of our
efforts - share our enthusiasm for the company's future."



Bradlees, with 109 stores in seven Northeastern states, is one
of the nation's largest discount retailers with annual total
sales of more than $1.6 billion.



NOTE: For fax copies of Bradlees' news releases, please dial
800-758-5804, ext. 105750



SOURCE Bradlees, Inc. /CONTACT: Bill Roberts of Bradlees,
617-380-8354/






American Western Refining Sets
Auction



LAWRENCEVILLE, Ill.--July 21, 1997--On Tuesday, July 15, 1997,
American Western Refining,
L.P.
("AWR"), Debtor and Debtor in Possession, Case
No. 96-1755 (HSB), issued a notice of sale of substantially all
of the assets of AWR pursuant to an order of the United States
Bankruptcy Court for the District of Delaware.



AWR owns a refinery and related assets located in
Lawrenceville and a barge terminal and related assets located on
the Ohio River in Mt. Vernon, Ind., (collectively the
"Assets"). On Nov. 6, 1996 AWR filed a voluntary
petition for relief under Chapter 11, Title 11 of the Bankruptcy
Code.



The debtor has continued to manage its estate pursuant to the
authority of Sections 1107(a) and 1108 of the Bankruptcy Code.



Clark Oil Trading Co. ("COTC") has provided the
post-petition financing necessary for the Debtor to preserve and
maintain the assets pending a sale. The current Financing Order,
as approved by the Bankruptcy Court on April 9, 1997, expires on
Aug. 30, 1997.



The Financing Order provides, that unless a sale of
substantially all the Assets is finalized by AWR on or before
Aug. 11, 1997, AWR will be required to auction the Assets in
whole or in part on Aug. 15, 1997.



Although AWR has received substantial interest in the Assets,
AWR has not received an offer in compliance with the requirements
set forth in the Financing Order.



Therefore, an Auction, subject to the terms and conditions of
the Financing Order, has been scheduled for 10:30 a.m. CDT on
Aug. 15, 1997, at the AWR refining facility, located at South 7th
Street, Lawrenceville, Ill., 62439. The Auction will proceed on
this date unless AWR and COTC have agreed to continue the date of
the Auction beyond the Aug. 15, 1997 deadline.



If the Auction is postponed a news release will be issued
outlining the arrangements as agreed to by all parties.



At the Auction, subject to the Financing Order, any or all of
the Assets of the Debtor will be sold pursuant to Section 363 of
the Bankruptcy Code free and clear of any liens, claims, and
encumbrances.



Any such sale will be subject to final Bankruptcy Court
approval. Any qualifying offer to purchase or qualifying bid to
be considered by Debtor shall have no conditions other than
issuance of a Bankruptcy court order approving sale.



Copies of the Financing Order and the Notice of Sale are on
file with the Office of the Clerk, United States Bankruptcy
Court, 824 Market Street, 5th floor, Wilmington, Del., and are
available for inspection and copying during business hours; or
may be obtained by written request to Debtor's counsel, Gesas,
Pilati, and Gesas Ltd., 53 West Jackson Blvd., Suite 528,
Chicago, Ill. 60604. -0-



All due diligence should be finalized prior to the Auction.
Any inquiries regarding an inspection of the Assets should be
arranged through AWR, Attn: Chris A. Woods, P.O. Box 8321,
Radnor, Pa. 19087-8321, or call 610/964-9640.



CONTACT: American Western Refining Chris A. Woods,
610/964-9640