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InterNet Bankruptcy Library - News for July 22, 1997







Bankruptcy News For July 22, 1997




        
  1. Sizzler Reports Return to
            Profitability

  2.     
  3. Grossman's Inc. Reports Nasdaq
            Delisting

  4.     
  5. Maidenform Files Chapter 11 With $50
            Million In DIP Financing; Recently Announced
            Restructuring Program to Continue

  6.     
  7. NCC announces bankruptcy filing

  8.     
  9. PAYLESS CASHWAYS BANKRUPTCY NEWS Now
            Publishing

  10.     
  11. S&P Lowers Payless Cashways' Debt
            Rtgs to D; Off Watch

  12.     
  13. Vermont Electric Cooperative First
            Mortgage Bonds Rated 'BBB-' by S&P






Sizzler Reports Return to Profitability



LOS ANGELES, CA--July 22, 1997--Sizzler
International Inc.
(NYSE:SZ) Tuesday reported for the fiscal
year ended April 30, 1997, net earnings of 2 cents per share for
the recently reorganized company vs. a net loss of $4.99 per
share a year earlier.



For the quarter ended April 30, 1997, Sizzler reported net
earnings of 7 cents per share vs. a net loss of $4.84 per share
in the same period a year ago, of which 46 cents was due to net
losses from operations and the remainder to reorganization
charges.



The company said this return to profitability for the year and
the quarter reflects improved results from U.S. domestic
operations, steps taken during the Chapter 11 reorganization
recently approved by the court, an international tax
restructuring and continued earnings contributions from
international operations.



Financial Results



For the fiscal year, revenues were $299,928,000 vs.
$436,194,000 the previous year. Net income was $565,000, or 2
cents per share, compared with a net loss of $138,458,000, or
$4.99 per share, a year ago, of which 61 cents was due to net
losses from operations and the remainder to reorganization
charges. On the April 30, 1997, end of the fiscal year, the
company or franchisees operated 461 restaurants compared with 661
at the end of the April 30, 1996, fiscal year.



For the quarter ended April 30, 1997, revenues were $59.4
million vs. $100,045,000 in the same period a year earlier. Net
income was $1,974,000, or 7 cents per share, vs. a net loss of
$134,493,000, or $4.84 per share, of which 46 cents was due to
net losses from operations and the remainder to reorganization
charges, for the same quarter a year ago.



Met Expectations



Sizzler International Chairman and Chief Executive Officer
James A. Collins said: "We were pleased with the results as
they met our objective of returning the company to profitability
by the fourth quarter. The positive results reflect the
turnaround in the operating profits of our U.S. domestic
restaurant business which is managed by a new executive team. The
U.S. operations improved performance was due to elimination of
underperforming restaurants and an improved operational
execution."



For the quarter, domestic operations reported revenues of
$22,633,000 vs. $57,948,000 the previous year. Domestic
operations reported a net loss of $280,000 versus a net loss of
$6,352,000 in the fourth quarter last year. These improved
results reflect elimination of underperforming U.S. restaurants.
As of April 30, 1997, the Sizzler U.S. system consisted of 268
restaurants, of which 69 are company operated and 199 franchisee
operated, as compared with 434 in the previous fiscal year.



Successful Reorganization



In June 1996, Sizzler filed for Chapter 11 protection to help
reorganize domestic operations including closing unprofitable
company-owned restaurants, relieving the burden from closed
facilities and creating an environment to turn around U.S.
operations. Sizzler's plan to emerge from Chapter 11 was approved
by the bankruptcy court on June 2, 1997. All creditors are being
repaid in full.



Christopher R. Thomas, president and chief executive officer
of Sizzler U.S.A., said: "The first task was to reorganize
the system of domestic restaurants. The Chapter 11 period helped
us to eliminate underperforming restaurants and to focus
attention on better performing restaurants in markets where we
have significant market penetration.



"Our next task, which is still underway, is to reposition
these restaurants back to their historic grill-based niche. We
are accomplishing this by using new menu items, decor, marketing
and other tools to evolve away from the buffet positioning which
we believe contributed to our sales decline.



"We are also more focused on profitability as
demonstrated in substantial per-store profit improvement during
the fourth quarter and the establishment of profit-based
restaurant manager incentive programs."



International Contributions



Collins said that international operations continued to
contribute to earnings. According to Kevin Perkins, president and
chief executive officer Sizzler's international business:
"Our KFC operations in Australia grew from 92 restaurants to
96 restaurants during the fiscal year, showing sales gains with
strong profitability. The Australia Sizzlers are still
experiencing a decline in sales and profitability, while our
franchised Sizzler operations in Asia Pacific continue to expand
and contribute to profits."



For the quarter, international operations reported revenues of
$36,767,000 vs. $40,197,000 for the same period a year earlier.
International operations contributed $8,817,000 to net income in
the fourth quarter vs. $1,847,000 in the same quarter last year
primarily due to the international tax restructuring.



International Plans



Perkins said: "Growth of franchised Sizzlers in Asia
Pacific is expected to continue both in existing marketsand
additional markets. The company will also add additional KFC
restaurants in Australia, and we have plans to revitalize
Sizzler's Australian operations which will be implemented this
year utilizing many of the same approaches used in the U.S.
improvements."



Except for historical information contained herein, the
matters set forth in this news release are forward-looking
statements that are subject to certain risks and uncertainties
that could cause actual results to differ materially from those
set forth herein in the forward-looking statements, including
such factors, among others, as significant fluctuations in
operating results, uncertain profitability, uncertain market
acceptance of the company's product offering and intense
competition.



At April 30, 1997, Sizzler International operated or licensed
approximately 108 company-owned and 257 franchised Sizzler
restaurants around the world. The company also operated 96 KFC
restaurants in Queensland, Australia.



For more information on Sizzler International Inc. via
facsimile at no cost, call 800/PRO-INFO and dial client code SZ.



  


                          SIZZLER INTERNATIONAL,
                          INC
                             FINANCIAL HIGHLIGHTS
                 (Dollars in thousands, except
                 per-share data)


                                   For The Twelve
                                           For
                                   Fifty-Two
                                     Weeks Ended
                                             


                                     Weeks Ended
                                      April 30,  
                                               


                                      April 30,
                                      ---------  
                                               


                                      ---------


                                   1997      
                                   1996      
                                   1997      
                                   1996
                              ---------
                              ---------
                              ---------
                              ---------


  Systemwide Sales            $ 148,119  $
  201,776  $ 677,858  $ 875,704


  Revenues                    $  59,400  $
  100,045  $ 299,928  $ 436,194


  EBITDA                      $  3,646  
  $(121,165) $  15,312 $(106,081)


  Net Income                  $  1,974  
  $(134,493) $     565 $(138,458)


  Net Income Per Common Share $   0.07   $  
  (4.84) $    0.02  $ (4.99)


  Common and Common 
   Equivalent Shares            28,909     
   27,768     28,967
  27,773


  Common Shares, Assuming 
   Full Dilution                28,909     
   27,768     28,967
  27,773


  Cash and Cash Equivalents                      
    $  34,085  $ 9,216


  Total Assets                                   
    $ 164,106  $ 178,547


  Liabilities                                    
    $ 119,705  $ 135,080


  Shareholders' Equity 
   Per Share                                     
     $    1.53  $
  1.57


CONTACT: Sizzler International Inc., Los Angeles Christopher
Thomas, 310/827-2300 or The Financial Relations Board, Los
Angeles Stacy Roughan, general info. Moira Conlon/Edward Tretter,
investor/analyst contact Steven Seiler, media contact
310/442-0599






Grossman's Inc. Reports Nasdaq
Delisting



CANTON, Mass.--July 22, 1997-- Grossman's
Inc.
(NASDAQ-GROS), announced today that its common stock
will be delisted for the NASDAQ National Market effective with
the opening of business tomorrow. The Company stated that its
shares may be quoted on the OTC Bulletin Board or in the National
Quotation Bureau "Pink Sheets," subject to certain
conditions.



The NASDAQ Stock Market advised the Company that it is
delisting the Company's stock in light of its April 7, 1997
filing under Chapter 11 of the U.S. Bankruptcy Code and its
failure to meet NASDAQ Stock Market requirements with respect to
net tangible assets and minimum closing bid prices. The Company
is formulating a proposed plan of reorganization, which is not
currently expected to provide a recovery for stockholders.
Adoption of the plan will require appropriate Bankruptcy Court
and class approvals.



Statements contained in this release that are not based on
historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Important factors, beyond the Company's control, that could
cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the
availability of broker-dealers to make a market in the Company's
shares and compliance with related requirements, the need for
approvals by the Bankruptcy Court, competition, stability of
customer demand, and the sufficiency of its capital resources.
Undue reliance should not be placed on these forward-looking
statements, which speak only as of the date hereof. The Company
undertakes no obligations to publicly release revisions to these
forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.



Grossman's Inc. operates 15 stores under the name Contractors'
Warehouse in California, Indiana, Kentucky and Ohio, and 28
stores under the name Mr. 2nd's Bargain Outlet in Massachusetts,
New York and Rhode Island.



Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page:
http;//www.businesswire.com/cnn/gros.htm



Mr. 2nd's Bargain Outlet maintains a web site for product
information, store locations and feedback: http;//www.bargain-
outlets.com



CONTACT: Grossman's Inc. Dirck K. Iacobelli, 617-830-4556






Maidenform Files Chapter 11 With $50 Million In
DIP Financing; Recently Announced Restructuring Program to
Continue



NEW YORK, NY --July 22, 1997--Maidenform Worldwide, Inc.,
Maidenform, Inc. and NCC Industries,
Inc.
("Maidenform") today is filing for
reorganization under Chapter 11 of the U.S. Bankruptcy Code.



With the filing of these petitions -- supported by the
companies' primary lending institutions -- Maidenform expects to
complete the financial and operational restructuring necessary
for long term profitability and growth. While under Chapter 11
protection, Maidenform will continue its operations and the
corporate restructuring program announced last month.



Elizabeth Coleman, Maidenform chairwoman and CEO, said,
"This filing will allow Maidenform the time and flexibility
to implement the restructuring plan announced a few weeks ago. We
are entering Chapter 11 protection with the support of our
lending group and we expect to emerge with a sound balance sheet
and the operational strength to meet the strong demand for
Maidenform's brands."



Maidenform expects to receive $50 million in Debtor-in-
Possession financing from its primary lending group. Maidenform
intends to formulate a plan for reorganization which will
restructure its obligations and ensure the company has the
resources to implement its business plan on an ongoing basis.



"We are committed to using this time to streamline our
operations, enhance our order and delivery capabilities and
strengthen our product line," Ms. Coleman continued.
"Chapter 11 will provide the company with the ability to
implement these necessary changes and emerge as a stronger and
more profitable company."



Maidenform's restructuring program allows the company to focus
on its most profitable business lines, thereby allowing
significant reductions in selling, general and administrative
expenses. Within the program, the company established two brand
units which replaced the seven strategic units the company had
previously. The first brand unit consists of Maidenform, Self
Expressions and related private label businesses. The other unit
includes Lilyette, Flexees and related private label offerings.



Maidenform is one of the largest privately-owned manufacturers
of women's intimate apparel in the United States and in the
world. Maidenform owns approximately 92 percent of outstanding
stock of NCC Industries, Inc. (OTC: NCCD).



CONTACT: Maidenform Worldwide Inc., New York Don Nathan,
212/484-7782






NCC announces bankruptcy filing



NEW YORK, NY--July 22, 1997--NCC
Industries, Inc.
(OTC:"NCCD") (the
"Company") announced today that it, along with
Maidenform Worldwide, Inc. and Maidenform, Inc. (collectively,
the "Maidenform Group") filed a voluntary petition for
bankruptcy under Chapter 11 of the Federal Bankruptcy Code in the
United States District Court for the Southern District of New
York. The filing is expected to allow the Maidenform Group to
restructure its financial obligations through a plan of
reorganization. The Maidenform Group expects to receive $50
million of debtor-in- possession financing in connection with the
filing.



Maidenform Worldwide, Inc. ("Worldwide") owns
approximately 92.4% of the common stock of the Company. Worldwide
acquired the common stock of the Company in April 1995.
Maidenform, Inc. ("Maidenform") is a wholly-owned
subsidiary of Worldwide.



NCC Industries, Inc. is engaged in the foundation garment
business which consists of the design, manufacturers and sale of
brassieres, panties and girdles. Worldwide is one of the largest
privately-owned manufactures of women's intimate apparel in the
United States and the world.



CONTACT: Don Nathan 212/484-7782






PAYLESS CASHWAYS BANKRUPTCY NEWS Now
Publishing



PRINCETON, N.J., July 22, 1997 - Bankruptcy Creditors'
Service, Inc., today announced publication of PAYLESS CASHWAYS
BANKRUPTCY NEWS. This new case-specific bankruptcy newsletter
follows yesterday's announcement by href="chap11.paylesscashways.html">Payless Cashways, Inc.
(NYSE: PCS) that it has commenced a reorganization under chapter
11 of the United States Bankruptcy Code.



"Payless Cashways clearly is pushing to exit from chapter
11 quickly with a healthy balance sheet," said Peter A.
Chapman, President of Bankruptcy Creditors' Service, Inc., and
Editor of PAYLESS CASHWAYS BANKRUPTCY NEWS.



PAYLESS CASHWAYS BANKRUPTCY NEWS - like BCSI's other case-
specific bankruptcy newsletters - will provide on-going, in-depth
news and reporting about this chapter 11 case, Chapman related.
Chapman explains that attorneys, large creditors and so-called
vulture investors involved in chapter 11 bankruptcy cases as
large and complex as Payless Cashways' find BCSI's case-specific
newsletters to be an invaluable resource as they attempt to wade
through the mountains of paper filed with the Bankruptcy Court
and long hours of court hearings.



Today's first issue of PAYLESS CASHWAYS BANKRUPTCY NEWS
includes, among other things:



(i) background information about Payless Cashways and its
position in the building supply retail sector;



(ii) a copy of Payless Cashway's latest pre-petition balance
sheet;



(iii) case information extracted from Payless Cashways'
voluntary petition;



(iv) a calendar of key dates and deadlines related to Payless
Cashways'



chapter 11 case--including the Debtor's motions concerning
store closings and employee retention scheduled for hearing on
July 28, 1997; and



(v) a list of the Debtor's 20 largest unsecured creditors.



Chapman said that next week's issue will provide subscribers
with a detailed look at:



(a) the $125,000,000 DIP financing facility with Canadian
Imperial Bank



of Commerce,



(b) the handfuls of emergency motions brought before Judge
Federman to



keep the Debtor's businesses operating without interruption
from an



employee's or customer's perspective, and



(c) the entourage of financial, legal and other professionals
who will



push and pull the Debtor's case through the chapter 11
process. PAYLESS CASHWAYS BANKRUPTCY NEWS is distributed on a
subscription basis by e-mail or fax for $45 per issue. Delivery
is free by e-mail; nominal fax charges apply. New issues are
published as significant activity occurs (generally every 10 to
20 days) in the Payless Cashways case.



Chapman stated that one copy of the first issue of PAYLESS
CASHWAYS BANKRUPTCY NEWS is available at no charge upon request.
Chapman further advised that individuals with access to the
Internet can obtain copies of the first issue of PAYLESS CASHWAYS
BANKRUPTCY NEWS at
http://bankrupt.com/chap11.paylesscashways.htmlor
ftp://bankrupt.com/Bankruptcy News/Payless Cashways.txt
from the InterNet Bankruptcy Library.



SOURCE Bankruptcy Creditors' Service, Inc. /CONTACT: Peter A.
Chapman of Bankruptcy Creditors' Service, 609-392-0900,
Telecopier, 609-392-0040, or peterbankrupt.com/






S&P Lowers Payless Cashways' Debt
Rtgs to D; Off Watch



NEW YORK, NY--Standard & Poor's CreditWire
7/22/97--Standard & Poor's rating on href="chap11.paylesscashways.html">Payless Cashways Inc.'s
subordinated notes due 2003 and the company's bank loan rating
are lowered to single-'D' following the company's filing of a
reorganization plan under Chapter 11 of the Bankruptcy Code (see
list below).



The ratings are removed from CreditWatch, where they were
placed June 19, 1997. The company plans to effect a restructuring
of its debt and has received commitments for debtor-in-possession
financing in order to continue operating. Kansas City, Mo.-based
Payless has posted poor operating results over the last two
years. Payless remains under significant competitive pressure
from warehouse operators, Standard & Poor's said. --
CreditWire -0- *T



RATINGS REVISED Payless Cashways Inc. To From Corporate credit
rating N.M. B- Subordinated debt D CCC Bank loan rating D B-



CONTACT: Wayne F Stefurak, Cfa, New York (1) 212-208-8601






Vermont Electric Cooperative First
Mortgage Bonds Rated 'BBB-' by S&P



NEW YORK, NY - July 22, 1997 - Standard & Poor's today has
assigned its triple-"B"-minus rating to Vermont
Electric Cooperative, Vt.'s first mortgage bonds series 1997A due
May 1, 2017.



The rating reflects the following weaknesses:



- Limited financial performance as a result of its recent
emergence from bankruptcy, -- No debt service reserve fund, --
High distribution costs in proportion to energy costs and
uncertain long term power supply costs, -- Uncertainty regarding
the future management of the cooperative, and -- A sparsely
populated rural service area economy.



Vermont Electric Cooperative is emerging from bankruptcy under
a plan of reorganization approved by the court and the state's
public service board (PSB). Vermont Electric Cooperative will use
the bulk of the bond proceeds to pay its secured claims totaling
$17.6 million. The structure does not include a debt service
reserve fund which presents concern given the poor financial
history and reliance on financial projections as a result of the
bankruptcy. Vermont Electric Cooperative's projected coverage of
annual debt service ranges between 1.8 times (x)-1.9x through
2004. Coverage could be lower depending on actual costs, however,
the PSB, which regulates rates, has fully endorsed the plan.
Vermont Electric Cooperative's cash position is adequate at $1.6
million and will be maintained at this level.



The cooperative has a favorable two year all requirements
power supply agreement with the New England Power Company. While
power costs are favorable, at approximately 3.0 cents per KWh,
distribution costs are extremely high at about 8 cents per KWh.
This differential presents an ongoing risk, however, it is
partially mitigated given the PSB endorsement of the
reorganization plan. The power contract is load following which
mitigates concerns over the loss of a customer due to
competition. Future power supply is in question given no long
term commitments, however, Vermont Electric Cooperative
anticipates entering into short term power arrangements. As part
of the reorganization plan, the general manager will step down.
This presents some uncertainty regarding the future direction of
the cooperative's business affairs management will take. Vermont
Electric Cooperative's board is currently searching for a new
manager. The cooperative serves mostly residential customers in
rural areas of southern, north central, and far northern Vermont.
Vermont Electric Cooperative's service territory is sparsely
populated as evidenced by the only seven customers per line mile.



OUTLOOK: Stable. The outlook reflects Standard & Poor's
expectation that Vermont Electric Cooperative will meet its
financial targets as outlined in the reorganization plan and
address its management needs, Standard & Poor's said. -
CreditWire



SOURCE Standard & Poor's Credit Wire /CONTACT: Mark
Glotfelty, 212-208-1352, or David Bodek, 212- 208-1813, both of
S&P/