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InterNet Bankruptcy Library - News for July 16, 1997







Bankruptcy News For July 16, 1997




        
  1. Central and South West Corporation and
            El Paso Electric Company File Settlement of Litigation
            Related to Terminated Merger Agreement

  2.     
  3. Galey & Lord Reports Results For
            Third Quarter Of Fi sc 1997

  4.     
  5. Hollywood Park Subsidiary Files
            Reorganization Plan

  6.     
  7. WRT Emerges From Bankruptcy DLB/Wexford
            Own Majority Interest






Central and South West Corporation and El
Paso
Electric Company File Settlement of Litigation Related
to Terminated Merger Agreement



DALLAS, TX - July 16, 1997 - Central and South West
Corporation (NYSE: CSR) said that it and href="chap11.elpaso.html">El Paso Electric Company (AMEX: EE)
have filed a settlement agreement to resolve pending litigation
stemming from the June 1995 termination of the proposed merger
between the two companies.



Under terms of the settlement, the two companies have agreed
to dismiss all pending claims in the litigation and to give a
mutual release from any potential claims related to the
terminated merger agreement or the pending litigation.



In addition, Central and South West will pay $35 million to El
Paso Electric, various of its creditor groups under El Paso
Electric's Fourth Amended Plan of Reorganization and its
attorneys.



As reported earlier, Bankruptcy Judge Larry E. Kelly, chief
judge of the United States Bankruptcy Court for the Western
District of Texas, Austin Division, issued an interim order in
April 1997 finding that Central and South West owed El Paso
Electric a $25 million termination fee under the termination
provisions of the companies' merger agreement.



The judge also ruled that Central and South West might owe
"interest- carry" costs, which El Paso Electric alleged
to be approximately $18 million.



Judge Kelly's interim order will be vacated as a result of the
settlement.



In the first quarter of 1997, Central and South West recorded
a charge to earnings for the $25 million obligation to El Paso
Electric. The company said it would recognize the additional $10
million when it reports results for the second quarter of 1997.



Background and additional information about the litigation
with El Paso Electric can be found in Central and South West's
Annual Report on Form 10-K for the period ended December 31,
1996, and the corporation's Quarterly Report on Form 10-Q for the
period ended March 31, 1997.



Central and South West Corporation is a public utility holding
company based in Dallas. Central and South West owns four
electric operating subsidiaries in the United States, a regional
electricity company in the United Kingdom, and non-utility
subsidiaries involved in energy-related investments,
telecommunications, energy efficiency and financial transactions.



SOURCE Central and South West Corporation /CONTACT: News media
contact: Gerald R. Hunter, manager of external communications,
214-777-1165, or Financial community contact: Becky Hall,
director of investor relations, 214-777-1277, both of Central and
South West Corporation/






Galey & Lord Reports Results For Third
Quarter Of Fi sc 1997



GREENSBORO, N.C., July 16, 1997 - Galey & Lord, Inc.
(NYSE: GNL) today announced record net sales of $135.1 million
for the June quarter of 1997 (third quarter of fiscal 1997) as
compared to net sales of $115.4 million for the June quarter of
1996. Net income for the third quarter of fiscal 1997 was $4.2
million or $.35 per common share. The Company commented that net
income for the third quarter was adversely impacted by a $2.0
million pre-tax or $.10 per share after-tax bad debt reserve
taken as a result of a major home fabrics customer [Silas Creek,
et al.] filing for bankruptcy protection during the quarter.
Excluding this charge, net income for the third quarter would
have been a record $5.4 million or $.45 per common share as
compared to net income of $4.1 million or $.34 per common share
for the same period last year.



The Company reported that for the first nine months of fiscal
1997, net sales were $375.5 million as compared to $301.0 million
for the first nine months of fiscal 1996 or an increase of
25%.Net income for the first nine months of fiscal 1997 was $11.5
million or $.95 per common share as compared to $5.9 million
or$.49 per common share for the first nine months of fiscal 1996.
The current year included the $2.0 million pre-tax or $.10 per
common share after-tax bad debt reserve. The year-ago period
included a $1.6 million pre-tax or $.08 per share after-tax
charge for the write-off of fees related to the cancellation of a
proposed merger with Graniteville Company, a subsidiary of Triarc
Companies, Inc.



The Company announced that its order backlog on June 28, 1997
was $139 million, a 51% increase from the prior year backlog of
$92 million. Apparel fabrics backlog was up 71% and continues to
be at record seasonal levels. Home fabrics order backlog was down
32% from the prior year primarily due to the bankruptcy of the
customer mentioned above. The Company continues to sell to the
home fabrics customer who filed for bankruptcy protection and who
is now operating as a debtor-in-possession. However, Galey &
Lord now books orders for that customer only upon receipt of cash
deposits.



Arthur C. Wiener, Chairman and CEO said, "I am pleased
with the record sales and earnings for the quarter, although I am
disappointed that the bad debt reserve partially offset the
earnings. The bad debt reserve was the largest such reserve taken
in the Company's history." Mr. Wiener further commented
that, "I am extremely pleased with the continued strong
apparel backlog and the progress made during the quarter of
increasing the G&L Service Company, N. A. customer
base."



Galey & Lord is a leading manufacturer of high-quality
woven cotton and cotton-blended apparel fabrics, sold principally
to manufacturers of sportswear and commercial uniforms. The
Company also manufactures fabrics used in home furnishings,
including comforters, bedspreads and curtains. In June 1996, the
Company began offering finished garments to its branded apparel
customers through G&L Service Company, North America, Inc.



This press release contains statements which constitute
forward- looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements
include statements regarding the intent, belief or current
expectations of the Company and its management team. Prospective
investors are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements. Such risks and
uncertainties include, among other things, competitive and
economic factors in the textile, apparel and home furnishings
markets, raw materials and other costs, weather-related delays,
general economic conditions and other risks and uncertainties
that may be detailed, from time-to-time, in Galey & Lord's
reports filed with the Securities and Exchange Commission.



                                    GALEY & LORD, INC.
                           CONSOLIDATED STATEMENTS OF INCOME
                       (Amounts in thousands except per share data)
  


                                       Three Months Ended     Nine
  Months Ended
  


                                       June 28,    June 29,   June
  28,  June 29,
  


                                        1997        1996       1997
  1996
  


      Net sales                       $135,113   $115,437    $375,470
  $300,965
  


      Cost of sales                    118,839    102,042     332,766
  270,265
  


      Gross profit                      16,274     13,395      42,704
  30,700
  


        Selling, general and
        administrative expenses          5,958      3,616      13,503
  10,102
  


      Amortization of goodwill             421        321       1,258
  879
  


      Operating income                   9,895      9,458      27,943
  19,719
  


      Interest expense                   3,112      2,819       9,225
  8,509
  


      Write-off of merger costs
  --         --          --     1,600
  


      Income before income taxes         6,783      6,639      18,718
  9,610
  


        Income tax expense (benefit)
        Current                          2,765      1,616       7,003
  2,233
  


        Deferred                          (166)       972         209
  1,467
  


      Net income                        $4,184     $4,051     $11,506
  $5,910
  


        Net income per common share:
        Primary:
          Average common shares
         outstanding                    12,055     11,889      11,990
  11,942
  


          Net income per common share -
         primary                         $ .35      $ .34       $ .96
  $ .49
  


        Fully Diluted:
          Average common shares
         outstanding                    12,107     11,889      12,095
  11,949
  


          Net income per common share -
         fully diluted                   $ .35      $ .34       $ .95
  $ .49
  


                              SELECTED SEGMENT OPERATING RESULTS
                                 (Dollar amounts in millions)
  


                                        Three Months Ended   Nine
  Months Ended
                                       06/28/97   06/29/96   06/28/97
  06/29/96
  


        Net Sales Per Segment
      Apparel fabrics                  $ 124.7     $102.4     $348.3
  $266.6
       Home fabrics                       10.4       13.0       27.2
  34.4
       Total                           $ 135.1     $115.4     $375.5
  $301.0
  


        Operating Income (Loss) Per Segment
       Apparel fabrics                  $ 11.6     $ 10.5     $ 29.6
  $ 20.4
        % of Net Sales                     9.3%      10.2%       8.5%
  7.6%
       Home fabrics                     $ (1.7)    $ (1.0)    $ (1.7)
  $ (.7)
        % of Net Sales                   (16.0)%     (7.7)%
  (6.3)%   (1.9)%
  


       Total                            $  9.9      $ 9.5     $ 27.9
  $ 19.7
        % of Net Sales                     7.3%       8.2%       7.4%
  6.5%
  


                              CONSOLIDATED BALANCE SHEETS
                                (Amounts in thousands)
  


                                         JUNE 28,     JUNE 29,
  SEPTEMBER 28,
  


                                          1997         1996
  1996
                                          (Unaudited) (Unaudited)
  


        ASSETS
  


        Current assets:
        Cash and cash equivalents         $ 3,040    $   602      $
  3,799
        Trade accounts receivable          86,416     87,388
  74,180
          Sundry notes and accounts
          receivable                          191        116
  164
        Inventories                        82,782     78,729
  76,934
        Deferred income taxes                602      1,769
  404
          Prepaid expenses and other current
          assets                            4,048        733
  1,853
        Total current assets              177,079    169,337
  157,334
  


        Property, plant and equipment,
      at cost                             184,362    158,950
  162,199
        Less accumulated depreciation
       and amortization                   (64,436)   (52,642)
  (55,178)
                                          119,926    106,308
  107,021
      Deferred charges                        895      1,173
  1,055
      Intangibles                          38,372     39,558
  39,466
                                         $336,272   $316,376
  $304,876
  


        LIABILITIES AND STOCKHOLDERS' EQUITY
  


        Current liabilities:
          Current portion of
         long-term debt                  $ 13,318   $ 13,620      $
  13,506
        Trade accounts payable             22,252     20,837
  20,957
          Accrued salaries and
         employee benefits                  8,382      8,820
  10,766
        Accrued liabilities                 3,211      4,289
  3,311
        Income taxes payable                2,398      2,121
  1,115
         Total current liabilities         49,561     49,687
  49,655
  


        Commitments
      Long-term debt                      167,866    164,009
  149,265
      Other long-term liabilities              84        162
  143
      Deferred income taxes                16,575     15,467
  16,168
  


        Stockholders' equity:
        Common stock                          120        120
  120
          Contributed capital in
         excess of par value               35,722     34,429
  34,687
        Retained earnings                  68,395     53,321
  56,889
        Treasury stock, at cost            (2,051)      (819)
  (2,051)
         Total stockholders' equity       102,186     87,051
  89,645
                                        $ 336,272  $ 316,376      $
  304,876
  


                          CONSOLIDATED STATEMENT OF CASH FLOWS
                                (Amounts in thousands)
  


                                                       Nine Months
  Ended
                                                     June 28,
  June 29,
                                                        1997         1996
        Cash flows from operating activities:
        Net income                                $ 11,506        $
  5,910
          Adjustments to reconcile net income to
           net cash provided by (used in) operating activities:
            Depreciation of property, plant and
           equipment                                10,028
  7,557
          Amortization of intangible assets          1,258
  879
          Amortization of deferred charges             224
  146
          Deferred income taxes                        209
  1,467
          Non-cash compensation                        522
  --
            (Gain)/loss on disposals of property,
            plant and equipment                        122
  (2)
  


          Changes in assets and liabilities
           (net of acquisition):
            (Increase)/decrease in accounts
            receivable - net                       (12,236)
  (305)
            (Increase)/decrease in
            sundry notes & accounts receivable         (27)
  53
          (Increase)/decrease in inventories        (5,848)
  7,503
            (Increase)/decrease in prepaid
            expenses and other current assets       (2,195)
  (70)
            (Decrease)/increase in accounts
            payable - trade                          1,295
  2,272
            (Decrease)/increase in accrued
            liabilities                             (3,205)
  (2,634)
            (Decrease)/increase in income
            taxes payable                            1,283
  3,596
  


        Net cash provided by (used in)
       operating activities                          2,936
  26,372
  


        Cash flows from investing activities:
          Acquisition of business - net
         of cash acquired
  --        (22,371)
        Property, plant and equipment expenditures (23,537)
  (9,484)
          Proceeds from sale of property, plant
         and equipment                               1,202
  1,088
        Other                                         (163)
  (57)
  


        Net cash provided by (used in) investing
       activities                                  (22,498)
  (30,824)
  


        Cash flow from financing activities:
        Increase in revolving line of credit        30,800
  12,800
        Principal payments on long-term debt       (12,387)
  (10,930)
          Net proceeds from issuance of common
         stock                                         513
  14
        Purchase of treasury stock
  -           (752)
        Payment of bank fees and loan costs            (64)
  (465)
        Other                                          (59)
  (50)
  


        Net cash provided by (used in) financing
       activities                                   18,803
  617
  


        Net increase/(decrease) in cash and cash
       equivalents                                    (759)
  (3,835)
  


        Cash and cash equivalents at beginning
       of period                                     3,799
  4,437
  


        Cash and cash equivalents at end of
       period                                        3,040
  602
  


SOURCE Galey & Lord, Inc./CONTACT: Arthur C. Wiener,
212-465-3000, or Michael R. Harmon, 10-665-3037, both of Galey
& Lord, Inc./






Hollywood Park Subsidiary Files
Reorganization Plan



INGLEWOOD, Calif., July 16, 1997 - Hollywood Park Inc.
(Nasdaq: HPRK) announced today that its subsidiary, href="chap11.sunflower.html">Sunflower Racing Inc., filed a
plan of reorganization in bankruptcy court yesterday.



Sunflower, which owns and operates the Woodlands Race Track in
Kansas City, Kan., filed for reorganization under Chapter 11 of
the Bankruptcy Code in May 1996.



The reorganization plan contemplates the sale of Sunflower's
property to the Wyandotte Indians of Oklahoma. Upon the
completion of the sale, the Wyandottes would place the land in
trust and plan to build a casino on the site.



Hollywood Park and a partner company, North America Sports
Management Inc. ("NORAM") of Florida, would then manage
the casino in return for 30 percent of the profit. Hollywood Park
and NORAM have signed a partnership agreement subject to approval
of the Sunflower reorganization plan.



Implementation of the Sunflower plan of reorganization is
subject to a variety of conditions, including approval by the
bankruptcy court, execution of a compact between the Wyandotte
Indians and the State of Kansas authorizing gaming at the
Woodlands (similar compacts have been entered into with other
Native Americans tribes in Kansas) and other regulatory approval.



Hollywood Park wrote off its investment in Sunflower in March
1996, taking a one-time, non-cash loss for the investment, and
has not included the results of Sunflower's operations in its
consolidated financial statements since then.



Hollywood Park Inc., headquartered in Inglewood, Calif., is a
gaming and entertainment holding company. It owns and operates
Hollywood Park Race Track, one of America's premier thoroughbred
racing facilities and site of the 1997 Breeders Cup(R); Turf
Paradise Inc., a premier thoroughbred race track in Phoenix,
Ariz.; Hollywood Park - Casino; and Boomtown casinos in Reno,
Nev., in Biloxi, Miss., and in New Orleans. The company owns and
leases the Radisson Crystal Park Hotel and Casino in Crystal
City, Calif. Hollywood Park Race Track and Hollywood Park -
Casino are situated on 378 acres near Los Angeles International
Airport.



For more information on Hollywood Park Inc. by facsimile at no
cost, call 1-800-PRO-INFO and enter company code HPRK.



The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor "for forward-looking statements. This
news release includes statements that are forward-looking, such
as references to plans for the reorganization of Sunflower Racing
Inc. Forward- looking statements involve important risks



and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ
from those expressed in forward-looking statements made by or on
behalf of Hollywood Park Inc. Among the uncertain factors in this
instance would he the approval of the reorganization plan. For
more information on other potential factors that could affect the
Hollywood Park Inc.'s financial results, please review the
company's filings with the Securities and Exchange Commission,
including the company's annual report on Form 1O-K and the
company's other filings with the SEC, including the company's
Joint Proxy/Prospectus dated Sept. 20, 1996.



SOURCE Hollywood Park Inc. /CONTACT: R.D. Hubbard, Chairman
and CEO or G. Michael Finnigan, President, Sports and
Entertainment and CFO of Hollywood Park Inc., 310-419-1539; or
David Lawton, General Information or Steven Seiler, Media,
310-442-0599, or Kathy Brunson, Investor contact, 312-266-7800,
or Sue Dooley, Investor contact, 415-986-1591, all of Financial
Relations Board/






WRT Emerges From Bankruptcy DLB/Wexford Own
Majority Interest



OKLAHOMA CITY, July 16, 1997 - DLB Oil & Gas, Inc.
(Nasdaq: DLBI) today announced consummation of the plan of
reorganization for WRT Energy
Corporation,
of which WRT, DLB and Wexford Management LLC on
behalf of its affiliated investment funds were co-proponents.



WRT Energy Corporation (WRT) is now a Delaware corporation and
will have a total of 2O.O4 million shares(CUSIP.92931K-40-3)
issued and outstanding, DLB Oil and Gas, Inc. currently owns
10.35 million shares. Wexford Management LLC presently owns 1.84
million shares. An additional 1.41 million shares, currently in
escrow, will be distributed upon resolution of certain post
closing matters.



WRT owns interests in 19 fields in south Louisiana and
controls operations on essentially 100% of its production. As of
December 31, 1996, WRT proved reserves, as estimated by
Netherland, Sewell and Associates, Inc., totaled approximately 28
million barrels of oil equivalent.



DLB Oil & Gas, Inc. is an Oklahoma City-based independent
energy company engaged primarily in oil and gas exploration,
development and production, and in the acquisition of producing
properties. The Company's common stock trades under the symbol
DLBI.



SOURCE DLB Oil & Gas, Inc. /CONTACT: Fred Standefer, Vice
President Corporate Development, 405-848-8808/