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InterNet Bankruptcy Library - News for July 17, 1997

Bankruptcy News For July 17, 1997

  1. Ugly Duckling Corp. to Purchase Secured
            Bank Debt of First Merchants Acceptance Corp.

  3. Maytag's Second Quarter Sales Up
            Nearly 8 Percent

  5. Barneys Has Use of Full $110 Million
            Post-Petition Financing

  7. El Paso Electric Company and Central
            and South West Corporation Reach Settlement

  9. First Merchants Obtains
            Interim Financing; Settlement with Bank Group Announced

  11. Second Quarter Revenue Up Thirty Two
            Percent for Reinhold Industries

  13. Court Approves Sale of KIWI International
            Air Lines' Assets To Kiwi International Holdings

Ugly Duckling Corp. to Purchase Secured Bank Debt of name="First">First Merchants Acceptance Corp.

PHOENIX, AZ --July 17, 1997-- Ugly Duckling Corp.
(Nasdaq/NM:UGLY) Thursday announced that it has entered into an
agreement in principle with the senior bank group of href="chap11.firstmerchants.html">First Merchants Acceptance
Corp. (Nasdaq/NM:FMACE) to purchase the secured debt held by
such group.

The debt totals approximately $103 million. FMACE filed for
reorganization under Chapter 11 of the federal Bankruptcy Code on
July 11. In connection with the bankruptcy proceedings, Ugly
Duckling, which owns approximately 2 1/2% of FMACE's common stock
with a cost basis of $1.5 million, agreed last week to provide up
to $10 million of "debtor in possession" financing to

The more significant terms of the proposed purchase of senior
debt provide, among other things, for (1) purchase of the debt at
a 10% discount of the outstanding principal amount; (2) six-month
financing by the bank group to Ugly Duckling for the purchase,
with interest accruing at LIBOR plus 2%, and an up-front payment
by Ugly Duckling to the bank group equal to 20% of the purchase
price; and (3) issuance of stock warrants to the bank group to
purchase up to 500,000 shares of Ugly Duckling's common stock at
an exercise price of $20 per share over a 30-month term and
subject to a call feature by the company at $27.

The purchase is subject to certain conditions, including, but
not limited to, Bankruptcy Court approval, unless waived by the
bank group, and execution of definitive documents.

With headquarters in Phoenix, Ugly Duckling operates the
largest publicly held chain of "buy here-pay here" used
car dealerships in the United States and underwrites, finances
and services retail installment contracts generated from the sale
of used cars by its dealerships and by third-party, used-car
dealerships located in selected markets throughout the country.

With headquarters in Deerfield, Ill., FMACE is a national
specialty finance company, primarily engaged in financing the
purchase of used automobiles by consumers who have limited access
to traditional sources of credit. -0-

This news release includes statements that may constitute
forward-looking statements, usually containing the words
"believe," "estimate," "project,"
"expect" or similar expressions. These statements are
made pursuant to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that would
cause actual results to differ materially from the
forward-looking statements. By making these forward-looking
statements, the company undertakes no obligation to update these
statements for revisions or changes after the date of this
release. Factors that could cause or contribute to such
differences include, but are not limited to, factors detailed in
the section titled "Risk Factors" in the company's
prospectus, dated June 24, 1997, in the sections titled
"Factors That May Affect Future Stock Performance" and
elsewhere in the company's most recent reports on Form 10-K/A and
Form 10-Q, and in Ugly Duckling's other Securities and Exchange
Commission filings.

CONTACT: Ugly Duckling Corp. Steven T. Darak, 602/852-6600 or
Silverman Heller Associates Eugene Heller/Lori Parks,

Maytag's Second Quarter Sales Up Nearly 8

NEWTON, Iowa, July 17, 1997 - Maytag's (NYSE: MYG) sales in
the second quarter of this year rose 7.9 percent over the second
quarter of 1996, while net income was off slightly from the year-
earlier period.

Consolidated sales in the quarter increased to $814.5 million
and included $26.3 million in sales from Maytag's China joint
venture formed last fall. Sales were $754.6 million in last
year's second period.

Operating income was $88.4 million in the quarter, up 8
percent from $81.8 million a year ago. Net income was $43.8
million (45 cents a share), compared to last year's second
quarter record of $44.3 million (43 cents a share).

Discussing the results, Maytag Chairman and Chief Executive
Officer Leonard A. Hadley said, "Sales of Hoover brand floor
care products and Dixie-Narco vending equipment continued to be
strong in the second quarter, and Maytag's commercial laundry
equipment business benefited from our new high-efficiency,
horizontal-axiswasher. Sales were up for Maytag International,
which handles export sales and licensing agreements, and our
China joint venture had another successful quarter.

"Major appliances, our largest product category, posted a
slight sales increase for the quarter in an intensely competitive
business environment. Sales of the new Maytag and Jenn-Air brand
refrigerators were exceptionally strong. Maytag laundry equipment
and dishwashers, plus Magic Chef cooking appliances, also
experienced quarterly gains in unit sales. We noted some weakness
in other branded product categories and in private label sales.

"As expected, operating income for major home appliances
was somewhat depressed by costs associated with the initial
production of our new products, aggressive merchandising programs
and added costs involving our recently established regional
product distribution centers.

"Net income was impacted by higher interest expense in
this year's second quarter, compared to the second quarter of

"Looking ahead, we continue to believe 1997 will be
another good year for Maytag. Our new products and models should
help generate increased sales in the second half of this year,
and some costs associated with the new product initiatives will

Maytag's North American home appliance segment (major
appliances and floor care products) reported record second
quarter sales of $724.6 million and operating income of $84.6
million. A year ago, second quarter sales were $709.5 million and
operating income was $85.2 million.

Dixie-Narco's vending equipment sales rose to $63.7 million,
versus $45.1 million a year ago. Operating income was $7.7
million, compared to $3 million in the second quarter of 1997
when the company experienced production-related problems.

Maytag's China joint venture with Hefei Rongshida reported
second quarter sales of $26.3 million and operating income of
$2.6 million.

First Half 1997

Maytag's consolidated sales in the first six months of this
year were $1.607 billion, up 8.2 percent from $1.486 billion in
last year's first half. Operating income was $164.9 million,
versus $118.5 million last year after a $40 million restructuring

Net income in the first half of 1997 was $82.3 million (84
cents a share), compared to $60.5 million (58 cents a share).
Excluding the restructuring charge, last year's first half net
income was $84.9 million (82 cents a share).

Maytag's North American home appliance segment reported first
half sales of $1.426 billion and operating income of $158.1
million. A year ago, first half sales were $1.392 billion and
operating income was $123.9 million, after the $40 million
restructuring charge.

Dixie-Narco's first half sales rose to $119.6 million, versus
$93.7 million a year ago. Operating income was $14.3 million,
compared to $8.9 million in the first half of last year.

Maytag's China joint venture had sales of $61.7 million in the
first half of this year and operating income of $6.1 million.

Discussing a current situation, Hadley noted that the
corporation faces unresolved issues involving a major customer, href="chap11.montgomeryward.html">Montgomery Ward, which
filed for Chapter 11 bankruptcy protection on July 7. At the time
of the filing, after adjustments which should be available in
bankruptcy, Maytag had accounts receivables due from Montgomery
Ward of approximately $39 million.

Hadley said, "It is too early to determine when and to
what extent the amount due from Montgomery Ward will be
recovered. Based on information currently available, we have a
reserve for the portion of this account we consider to be at
risk. We continue to evaluate this situation and are having
discussions with Montgomery Ward regarding our relationship as
they restructure their business, operating under the auspices of
bankruptcy court."

Maytag Corporation is a leading producer of major home
appliances, floor care products and vending equipment. Its
wellknown brands include Maytag, Jenn-Air, Hoover, Magic Chef and
Admiral. Dixie-Narco is the corporation's vending equipment
manufacturer. Maytag's joint venture in China is with Hefei
Rongshida, one of the country's leading washing machine

                                  MAYTAG CORPORATION

                                 NET SALES (in thousands)

                                     1997         1996       %Change
        Home appliances
            North America         $ 724,569    $ 709,511     +  2.1
            Asia                     26,255          --
        Vending equipment            63,717       45,108     + 41.3

        Consolidated              $ 814,541    $ 754,619     +  7.9

                             OPERATING INCOME (in thousands)

                                     1997         1996       %Change
        Home appliances
            North America         $  84,596    $  85,172     -  0.7
            Asia                      2,625           --
        Vending equipment             7,739        3,017     +156.5
        General corporate            (6,574)      (6,370)

        Consolidated              $  88,386    $  81,819     +  8.0

                                NET INCOME (in thousands)

                                     1997         1996       %Change

        Reported                  $  43,783    $  44,343     -  1.3

                                    EARNINGS PER SHARE

                                     1997         1996       %Change

        Reported                  $  0.45       $  0.43      +  4.7

        Weighted average shares
        outstanding (thousands)    97,785       102,604      -  4.7


                                 NET SALES (in thousands)

                                     1997         1996       %Change
        Home appliances
            North America        $1,425,729   $1,392,161      + 2.4
            Asia                     61,708          --
        Vending equipment           119,573       93,704      +27.6

        Consolidated             $1,607,010   $1,485,865      + 8.2

                             OPERATING INCOME (in thousands)

                                     1997         1996       %Change
        Home appliances
            North America         $ 158,103    $ 163,901      - 3.5
            Restructuring charge        --       (40,000)
            Asia                      6,149           --
        Vending equipment            14,300        8,940      +60.0
        General corporate           (13,666)     (14,321)

        Consolidated              $ 164,886    $ 118,520      +39.1

                                NET INCOME (in thousands)

                                     1997         1996       %Change

        Comparative               $  82,283    $  84,861      - 3.0
        Restructuring charge
            (after-tax)                  --      (24,400)

        Reported                  $  82,283    $  60,461      +36.1

                                    EARNINGS PER SHARE

                                     1997         1996       %Change

        Comparative               $  O.84       $  0.82       + 2.4
        Restructuring charge           --         (0.24)

        Reported                  $  0.84       $  0.58       +44.8

        Weighted average shares
        outstanding (thousands)    97,700       103,667       - 5.8

        (In thousands, except per share data)
                                 Second Quarter Ended       Six
  Months Ended
                                       June 30                   June
                                   1997         1996         1997

      Net sales                 $ 814,541   $ 754,619    $1,607,010

      Cost of sales               590,096     547,404     1,173,083

         Gross profit             224,445     207,215       433,927

        Selling, general and
      administrative expenses     136,059     125,396       269,041

      Restructuring charge
  --          --            --      40,000

         Operating income          88,386      81,819       164,886

      Interest expense            (14,431)    (10,458)      (29,142)

      Other - net                 ( 1,601)        891           478

           Income before
           income taxes and
         minority interest         72,354      72,252       136,222

      Income taxes                 27,728      27,909        51,872

           Income before
         minority interest         44,626      44,343        84,350

      Minority interest              (843)         --        (2,067)

         Net income            $   43,783   $  44,343     $  82,283
  $  60,461

        Earnings per common share:

         Net income            $     0.45    $   0.43     $    0.84
  $    0.58

        Weighted average shares
      outstanding                  97,785     102,604        97,700

        (In thousands)

                                                        June 30
  Dec. 31


        Current assets
      Cash and cash equivalents                       $   33,770
  $   27,543

      Accounts receivable - net                          511,328

      Inventories                                        366,400

      Deferred income taxes                               30,266

      Other current assets                                45,908

          Total current assets                           987,672

      Noncurrent assets                                  555,635

      Property, plant and equipment                      894,125

          Total assets                                $2,437,432


        Current liabilities
      Accounts payable and accrued expenses           $  448,736
  $  455,435

        Notes payable and
        current maturities of long-term debt             162,417

          Total current liabilities                      611,153

      Deferred income taxes                               27,115

      Long-term debt                                     479,100

      Postretirement benefits other than pensions        451,536

      Other noncurrent liabilities                       157,694

      Minority interest                                   72,044

      Shareowners' equity                                638,790

          Total liabilities and shareowners' equity   $2,437,432

SOURCE Maytag Corporation/CONTACT: James G. Powell, Maytag
Communications, 515-791-8392,

Barneys Has Use of Full $110 Million
Post-Petition Financing

NEW YORK, NY - July 17, 1997 - Barney's,
said today that it has received final Bankruptcy Court
approval for full use of $110 million in debtor-in-possession
facility that is being provided by a syndicate led by BankBoston
NA as administrative agent. The Company has begun operating under
the facility. The financing expires on August 3, 1998, the end of
the Company's fiscal 1998 year.

A Company spokesperson said, "The enhanced availability
and larger facility under the current DIP will provide comfort to
our vendors and enables us to operate our business consistent
with our fiscal 1998 business plan."

Barney's, Inc. and certain of its subsidiaries voluntarily
filed a petition of reorganization under Chapter 11 on January
10, 1996. Barneys employs approximately 1,750 in nine stores in
New York City and Manhasset, New York; Beverly Hills and Costa
Mesa, California; Chicago, Illinois; Chestnut Hills,
Massachusetts; Westport, Connecticut and Seattle, Washington; ten
outlet stores, corporate offices in New York and a distribution
center in Lyndhurst, New Jersey.

SOURCE Barney's, Inc./CONTACT: Sandra Sternberg or Ann Julsen,
both of Sitrick And Company, 310-788-2850/

El Paso Electric Company and Central and
South West Corporation Reach Settlement

EL PASO, Texas, July 17, 1997 -
El Paso Electric
(AMEX: EE) ("EPE") announced today
the settlement of litigation with Central and South West
Corporation (NYSE: CSR) ("CSW") stemming from the 1993
failed merger between the two companies. Pursuant to the
settlement agreement, CSW will pay $35 million. Under the terms
of EPE's Fourth Amended Plan of Reorganization approved by the
Bankruptcy Court, the first $20 million from the CSW settlement
were assigned to EPE's former common and preferred shareholders
of record as of Feb. 12, 1996. The amount to be distributed to
former common equity holders is approximately 28 cents per share,
and the distribution to former preferred equity holders will be
pro rata based upon redemption prices. Distributions to former
common and preferred shareholders will be made under the
supervision of the CSW Litigation Settlement Advisor as appointed
by the Bankruptcy Court under EPE's Fourth Amended Plan of

El Paso Electric, which emerged from Chapter 11 bankruptcy
protection in February, 1996, is an electric utility serving
approximately 281,000 retail customers in El Paso, Texas and
areas of the Rio Grande valley in west Texas and southern New
Mexico, as well as wholesale customers in southern California,
New Mexico, Texas and the Republic of Mexico.

SOURCE El Paso Electric Company/CONTACT: Media: Teresa Souza,
915-543-5823; Analysts: Leslie Beal, 915-543-2213, both of El
Paso Electric Company/

First Merchants Obtains Interim
Financing; Settlement with Bank Group Announced

DEERFIELD, Ill.--July 17, 1997--href="chap11.firstmerchants.html">First Merchants Acceptance
Corp. (NASDAQ: FMACE) announced that a debtor- in-possession
financing facility from Ugly Duckling Corp. ("UDC") was
approved today by the Delaware Federal Court where its Chapter 11
case is pending. The interim approval allows the Company to use a
$5 million line of credit. A final hearing on the full $10
million line of credit from UDC will be scheduled for August,
1997. The Company filed for protection under Chapter 11 of the
United States Bankruptcy Code on July 11, 1997.

At the hearing, there was also an announcement that UDC, the
Company and the Company's Bank Group had reached an agreement in
principle which, among other things, provides that UDC will buy
the Bank Group's position and that the Company will file a motion
to approve releases of the Bank Group and UDC which is
anticipated to be set for an August, 1997 hearing.

First Merchants is a national specialty financing company,
primarily engaged in financing the purchase of used automobiles
by consumers who have limited access to traditional sources of
credit. The Company acquires dealer-originated retail installment
contracts from franchised and independent automobile dealers and
financial institutions in 37 states.

CONTACT: First Merchants Acceptance Corp. Norman Smagley,
847/948-9300 or Amen & Associates Larry Parnell, 212/448-4257

Second Quarter Revenue Up Thirty Two Percent
for Reinhold Industries

SANTA FE SPRINGS, Calif., July 17, 1997 - Reinhold Industries,
Inc. of Santa Fe Springs, California, today announced results for
the second quarter and first six months of 1997.

The company reported revenues of $4.1 million, up 32% from
$3.1 million for the second quarter 1996. Net income for the
second quarter 1997 was $391 thousand (9.4% of sales), or $0.19
per share, compared to a net loss of $1.0 million for href="chap11.keene.html">Keene Corporation for the second
quarter of 1996.

For the first six months, revenues were $7.4 million, up 31%
from $5.6 million for the first six months of 1996. Net income
for the first six months of 1997 was $465 thousand (6.2% of
sales), or $0.23 per share, compared to a net loss of $2.3
million for Keene Corporation for the same l996 period. In
addition to higher revenues, backlog was up $2.2 million to $7.5
million from the end of 1996.

Reinhold Industries, Inc. is a manufacturer of custom advanced
composite components for the commercial aircraft seatback
industry, the defense industry, and other commercial industries.

Reinhold is the successor company to the Keene Corporation
which emerged from bankruptcy on July 31, 1996, the effective
date of the plan of reorganization.

SOURCE Reinhold Industries, Inc. /CONTACT: Judy Sanson of
Reinhold Industries, Inc., 562-944-3281/

Court Approves Sale of KIWI International
Air Lines' Assets To Kiwi International Holdings

NEWARK, N.J. July 17, 1997 - The sale of the assets of href="">KIWI International Air Lines, Inc. to
Kiwi International Holdings, Inc. was approved today in U.S.
Bankruptcy Court in Newark, NJ. The sale, valued at approximately
$16.5 million was approved after two days of hearings. The
acquisition of the assets include the KIWI name, goodwill,
employees, equipment, tickets and certain contractual
obligations. The new company will be a separate entity which will
not be subject to the bankruptcy proceedings of KIWI
International Air Lines, Inc.

"I know there was a collective sigh of relief from our
650 employees, who can now move ahead and help grow the
airline," said Jerry Murphy, president and CEO of KIWI.
"Throughout this whole process, Judge Gambardella and the
creditors showed a great desire to preserve jobs and ensure that
KIWI remains as the buffer against high fares in the markets we
serve. Our employees, vendors and the consumer wins in this

"The Chairman of Kiwi International Holdings, Dr. Edwards
has stated the public and employees will notice no immediate
changes in the airline's operations. It will be a seamless
transition with new financing and the ability to slowly expand.
On behalf of all KIWI employees and our customers, I want to
thank Dr. Edwards and Judge Gambardella for putting their faith
in KIWI. KIWI has operated for almost five years, and we are all
excited to move forward in the years ahead."

Kiwi International Holdings, Inc. was formed by Dr. Charles
Edwards, who through Edwards-Wasatch Enterprises provided the
debtor-in-possession financing for KIWI. Dr. Edwards is Chairman
of Kiwi International Holdings, and owns in excess of 75% of the

KIWI serves Newark, Chicago, Las Vegas, Atlanta, Orlando, West
Palm Beach and San Juan. Its perfect flying record is supported
by pilots who average 23 years flying experience and mechanics
with 18 years experience. It is a member of the Air Transport
Association of America.

SOURCE KIWI International Air Lines, Inc. /CONTACT: Rob Kulat
of KIWI International Air Lines, Inc., 201- 645-8445/

CO: KIWI International Air Lines, Inc.; Kiwi International
Holdings ST: New Jersey IN: AIR SU: