TCR_Public/970807.MBX



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InterNet Bankruptcy Library - News for August 7, 1997







Bankruptcy News For August 7, 1997




        
  1. Kerr Reports Second Quarter 1997 Results

  2.     
  3. SCPIE Holdings Reports Improved
            Second-Quarter Earnings

  4.     
  5. Alliance Entertainment Corp. Accepts
            Wasserstein Perella Offer for Red Ant; Court Approves
            Additional Funding for Red Ant Pending Sale

  6.     
  7. Elder-Beerman Files Plan of
            Reorganization

  8.     
  9. Colorado Gaming & Entertainment
            Co. Announces Second Quarter Results

  10.     
  11. Marbledge Announces Preliminary
            Results

  12.     
  13. Western Fidelity Funding, Inc. Seeks
            Chapter 11 Protection






Kerr Reports Second Quarter 1997 Results



LANCASTER, Pa., Aug. 7, 1997 - Kerr Group, Inc. (NYSE: KGM)
today reported earnings before unusual items, interest and income
taxes of $672,000 for the quarter ended June 30, 1997, compared
to earnings before unusual items, interest and income taxes of
$156,000 for the quarter ended June 30, 1996.



D. Gordon Strickland, President and Chief Executive Officer,
said such improved earnings, as compared to the second quarter of
1996, was primarily due to higher unit sales of pharmaceutical
packaging. Mr. Strickland also said that operating earnings for
the balance of 1997 should reflect cost reductions resulting from
the consolidation of manufacturing operations at the Company's
Bowling Green, Kentucky facility.



Net sales from continuing operations were $28,848,000 in the
second quarter of 1997 compared to $27,368,000 in the same period
in 1996.



During the second quarter of 1997, the Company recorded an
unusual item of $1,086,000, for professional fees related to its
refinancing efforts, which primarily consist of fees paid to the
owners of the Company's unsecured debt and fees paid to the
Company's financial and legal advisors. The Company also recorded
an income tax charge of $798,000 to increase the valuation
reserve against the Company's net deferred income tax asset
during the second quarter. The increase in the valuation reserve
eliminated the tax benefits the Company would have generated
during the second quarter of 1997, and was required because of
the continuing unwaived covenant defaults under loan agreements
governing the Company's $50,900,000 principal amount of unsecured
debt.



During the second quarter of 1996 the Company recorded an
unusual item of $901,000, which consists of $245,000 of
professional fees in connection with its refinancing efforts, and
$656,000 of costs associated with the restructuring of the
Company, which included moving the corporate headquarters from
Los Angeles, California to Lancaster, Pennsylvania and relocating
the wide mouth jar operations from Santa Fe Springs, California
to Bowling Green, Kentucky.



After unusual items, the Company reported a net loss
applicable to common stockholders from continuing operations of
$2,254,000 or $0.56 per common share for the quarter ended June
30, 1997, compared to a net loss applicable to common
stockholders from continuing operations of $1,327,000 or $0.34
per common share for the quarter ended June 30, 1996. The
increased loss in the second quarter of 1997 was due to the
deferred income tax valuation reserve and higher fees related to
the Company's refinancing efforts.



The Company had earnings from continuing operations before
unusual items, interest and income taxes, for the six months
ended June 30, 1997 of $1,237,000 compared to a loss from
continuing operations of $3,861,000 for the six months ended June
30, 1996. The substantial improvement in results from continuing
operations before unusual items, interest and income taxes was
primarily due to higher unit sales and improved pricing of
pharmaceutical packaging and prescription packaging, higher
production levels which reduced unit costs, and lower corporate
expenses as a result of the restructuring.



Net sales for the six months ended June 30, 1997 were
$57,580,000 compared to $52,464,000 in the year ago period due
primarily to higher unit sales of pharmaceutical packaging and
prescription packaging.



As previously announced, on August 5, 1997 Fremont Partners
announced that the tender offer to purchase all of the
outstanding shares of Common and Preferred Stock of the Company
had been extended to 12:00 midnight, Eastern time on Monday,
August 11, 997. Fremont stated that it was extending the tender
offer to allow continued discussions among Fremont, the Company,
the Pension Benefit Guaranty Corporation (PBGC) and the owners of
the Senior Notes. The PBGC had previously announced that it would
seek, as of August 1, 1997, to terminate the pension plan of the
Company.



The Company has not declared a dividend on its Class B, Series
D Preferred Stock since the first quarter of 1996. The cumulative
amount of undeclared dividends as of June 30, 1997 is $1,036,000.
Under the terms of the Company's $8,500,000 Secured Revolving
Credit Facility, the Company is not permitted to declare or pay
any dividends on its preferred stock.



Kerr, headquartered in Lancaster, Pennsylvania, is a major
producer of plastic packaging products.



                                   KERR GROUP, INC.
                        Statements of Earnings (Loss) for the
               Three Months and Six Months Ended June 30, 1997 and 1996
                                    (In Thousands)
  


                                       Three Months            Six
  Months
                                      Ended June 30,         Ended
  June 30,
                                    1997        1996         1997
  1996
                                       (Unaudited)
  (Unaudited)
      Net sales                    $28,848    $27,368     $57,580
  $52,464
      Cost of sales                 21,559     20,722      43,516
  42,866
         Gross profit                7,289      6,646      14,064
  9,598
  


        Research and development
       expenses                        494        479         927
  969
        Plant administrative
       expense                       1,573      1,354       2,882
  2,840
        Selling and warehouse
       expenses                      2,180      1,951       4,325
  4,037
      General corporate expenses     2,370      2,706       4,693
  5,613
           Earnings (loss) before unusual
            items, interest and income
          taxes                        672        156       1,237
  (3,861)
      Unusual items (b)              1,086        901       1,619
  8,401
      Interest expense, net          1,633      1,122       2,795
  2,381
          Loss from continuing
           operations before income
         taxes                      (2,047)    (1,867)     (3,177)
  (14,643)
  


        Provision (benefit) for
       income taxes (c)                  0       (747)          0
  (5,857)
  


        Loss from continuing
       operations                  $(2,047)   $(1,120)     (3,177)
  (8,786)
  


        Discontinued Operations:(a)
          Gain on sale of discontinued
         operations (d)                  0          0           0
  1,564
          Earnings (loss) from discontinued
         operations                      0          0           0
  (133)
             Net earnings related to
            discontinued operations      0          0           0
  1,431
           Net loss                 (2,047)    (1,120)     (3,177)
  (7,355)
  


      Preferred stock dividends (e)    207        207         414
  414
          Net loss applicable to
         common stockholders       $(2,254)   $(1,327)    $(3,591)
  $(7,769)
          Net earnings (loss) per common share,
           primary and fully diluted: (e) (f)
            From continuing
           operations              $(0.56)    $(0.34)     $(0.90)
  $(2.34)
            From discontinued
           operations (a)             .00         .00         .00
  .36
             Net loss              $(0.56)    $(0.34)     $(0.90)
  $(1.98)
  


      (a)  The Company sold the manufacturing assets of its Consumer
  Products Business on March 15, 1996 and, accordingly, has reflected
  the gain on the sale and the results of this discontinued business
  separately from continuing operations in the above table.
  


        (b)  Unusual items consist of the following:
  


                                     Three Months             Six
  Months
                                    Ended June 30,          Ended
  June 30,
  


                                    1997        1996        1997
  1996
                                       (Unaudited)
  (Unaudited)
      Financing costs (1)         $1,086        $245       $1,619
  $245
      Loss on restructuring (2)        0         656            0
  8,156
                                  $1,086        $901       $1,619
  $8,401
  


      (1) Financing costs represent professional fees related to the
  Company's refinancing efforts, which primarily consist of fees paid
  to the owners of the Company's unsecured debt and fees paid to the
  Company's financial and legal advisors.
  


      (2) During the second quarter of 1996, the Company incurred an
  unusual pre-tax loss of $656,000 for restructuring costs primarily
  related to relocation of personnel and equipment.  During the first
  quarter of 1996, the Company recorded an unusual pretax loss of
  $7,500,000 for the costs associated with the restructuring of the
  Company which included moving the corporate headquarters from Los
  Angeles, California to Lancaster, Pennsylvania and the relocation
  of the wide mouth jar operations from Santa Fe Springs, California
  to Bowling Green, Kentucky.  The loss consisted of reserves of
  $7,500,000 for i) severance pay, workers' compensation claims and
  insurance continuation costs of $3,000,000, ii) costs associated
  with terminating the leases of the two vacated facilities of
  $2,300,000, iii) asset retirements of $1,600,000 and iv) other
  costs of $600,000.
  


      (c)  During the three and six months ended June 30, 1997, the
  Company recorded income tax charges of $798,000 and $1,239,000,
  respectively, to increase the valuation reserve against the
  Company's net deferred income tax asset.  The increase in the
  valuation reserve eliminated the tax benefits the Company would
  have generated during the second quarter of 1997, and was required
  because of the continuing unwaived covenant defaults under loan
  agreements governing the Company's $50,900,000 principal amount of
  unsecured debt.
  


      During the third and fourth quarters of 1996, a valuation
  reserve was provided to eliminate the tax benefit recorded during
  the first and second quarters of 1996.
  


      (d)  Net earnings from discontinued operations includes an
  after-tax gain of $1,564,000 for the six months ended March 31,
  1996.  The gain on the sale of discontinued operations has been
  reduced by $5,800,000 of reserves consisting of i) retiree health
  care and pension expenses of $3,800,000, ii) severance pay,
  workers' compensation claims and insurance continuation costs of
  $1,000,000, iii) professional fees of $500,000, iv) asset
  retirements of $300,000, and v) other costs of $200,000.
  


      (e) The Company has not declared a dividend on its Class B,
  Series D Preferred Stock since the first quarter of 1996.  The
  cumulative amount of undeclared dividends as of June 30, 1997 is
  $1,036,000.  Under accounting rules, such dividends are not accrued
  until declared.  Under the terms of the Company's $8,500,000
  Secured Revolving Credit Facility, the Company is not permitted to
  declare or pay any dividends on its preferred stock.
  


      (f) Weighted average number of common shares and common share
  equivalents, outstanding for the three months and six months ended
  June 30, 1997 was 4,006,000 and 3,970,000, respectively.  Weighted
  average number of common shares outstanding for the three months
  and six months ended June 30, 1996, was 3,933,000.  Fully diluted
  net earnings per common share reflect when dilutive, a) the
  incremental common shares issuable upon the assumed exercise of
  outstanding stock options, and b) the assumed conversion of the
  Class B, Series D Preferred Stock and the elimination of the
  related dividends.  The calculation of fully diluted net earnings
  (loss) per common share for the three and six months ended June 30,
  1997 and 1996 was not dilutive.
  


                                   KERR GROUP, INC.
                            Condensed Balance Sheets as of
                         June 30, 1997 and December 31, 1996
                                    (In Thousands)
  


                                               June 30, 1997
  December 31, 1996
  


                                                (Unaudited)
  (Audited)
  


        Assets
        Cash and cash equivalents                  $3,717
  $9,107
        Receivables (a)                            14,665
  9,710
        Inventories                                14,402
  14,736
        Prepaid expenses and other current assets     591
  31
          Total current assets                     33,375
  33,584
  


        Property, plant and equipment, net         40,849
  38,890
  


        Deferred income tax asset                       0
  0
        Goodwill and other intangibles, net         7,163
  5,682
        Other assets                                3,552
  7,370
  


                                                  $84,939
  $85,526
  


        Liabilities and Stockholders' Equity
        Debt (b)                                  $50,900
  $50,900
          Borrowings under Secured
         Revolving Credit Facility                  2,345
  0
        Other current liabilities                  15,061
  12,995
          Total current liabilities                68,306
  63,895
  


        Accrued pension                            13,340
  13,935
        Other long-term liabilities                 2,966
  4,394
  


        Preferred stock                             9,748
  9,748
          Common equity (deficit) before
         pension adjustment                        (1,176)
  1,799
          Excess of additional pension liability
           over unrecognized prior service cost,
         net of tax benefits                       (8,245)
  (8,245)
  


        Total stockholders' equity                    327
  3,302
  


                                                  $84,939
  $85,526
  


      (a)  Receivables as of June 30, 1997 and December 31, 1996 have
  been reduced by net proceeds of $0 and $3,861,000, respectively,
  from advances pursuant to the sale of receivables under the
  Company's Accounts Receivable Agreement.
  


      (b)  The Company's outstanding senior debt due 1997 through
  2003 was classified as a current liability because the Company was
  in default of certain financial covenants.
  


SOURCE Kerr Group, Inc. /CONTACT: Geoffrey A. Whynot, Vice
President, Finance and Chief Financial Officer, 717-390-8439/






SCPIE Holdings Reports Improved
Second-Quarter Earnings



BEVERLY HILLS, Calif.-- Aug. 7, 1997--SCPIE Holdings Inc.
(NYSE:SKP), a major provider of medical malpractice insurance
Thursday reported improved operating results for the second
quarter and six months ended June 30, 1997.



Net income comparisons for the six-month periods reflected
significant realized capital gains in the prior-year period due
to the liquidation of equity securities as part of an overall
shift in investment strategy, as well as final policyholders'
dividends.



Net income for the second quarter was $8.0 million, or 65
cents per share, based on 23 percent more shares outstanding.
This compared with net income of $333,000, or 3 cents per share,
in the corresponding period of 1996, which included a $9.0
million expense for a final policyholders' dividend.



Operating income for the second quarter of 1997 rose to 55
cents per share on more shares outstanding -- compared with 12
cents per share a year ago, which included the expense for a
final policyholders' dividend. Realized investment gains in the
current- year second quarter were $2.0 million vs. a loss of $1.3
million a year earlier.



Total revenues for the second quarter of 1997 were $45.4
million, of which premiums earned were $32.7 million. In the
prior- year period, total revenues were $38.9 million, of which
premiums earned were $29.6 million.



For the six months ended June 30, 1997, net income was $16.1
million, or $1.35 per share, based on 19 percent more shares
outstanding, compared with $14.1 million, or $1.41 per share, in
the corresponding period of 1996. The prior-year period included
realized investment gains of $11.5 million, equal to a net gain
of $7.5 million, or 75 cents per share.



This was offset by the $9.0 million expense for policyholders'
dividends. In the current-year six-month period, investment gains
were $3.2 million, and there were no policyholders' dividends.



Six-month operating income was $1.18 per share -- compared
with 66 cents per share in the same period a year ago, which
included the expense for a final policyholders' dividend. Total
revenues were $93.8 million, which included premiums earned of
$69.1 million, compared with total revenue of $93.7 million in
the year- earlier period, including $61.1 million in premiums
earned.



Higher expenses in the current-year periods reflected an
anticipated increase in commission-based business and regulatory
insurance department examination fees, among other items.



SCPIE's GAAP loss ratio was 92.4 percent and 92.2 percent for
the 1997 second quarter and six months, respectively, compared
with 91.6 percent and 95.3 percent in the corresponding periods
of 1996. The GAAP expense ratio increased to 13.4 percent and
12.4 percent from 10.7 percent and 11.1 percent in year-earlier
second quarter and six-month periods, respectively.



The company's GAAP combined ratio was 105.8 percent and 104.7
percent for the second quarter and six months of 1997,
respectively, vs. 102.3 percent and 106.4 percent for the
comparable prior-year periods.



Total stockholders' equity increased to $335.8 million, equal
to $27.31 per share, at June 30, 1997.



Donald J. Zuk, president and chief executive officer, stated:
"We are pleased with our improved financial results,
specifically gains achieved in earned premiums. These gains are
largely due to the growth in our hospital-based business, which
is consistent with SCPIE's long-term strategy."



The company is pursuing its plan to expand its product line
and geographic base outside of California. SCPIE is offering
diverse products such as hospital professional liability, managed
care organization errors and omissions, and directors and
officers liability insurance for health care organizations.



Separately, the company announced it has submitted a bid,
subsequently accepted, for a minimum of $1.5 million for the
assets of Sullivan, Kelly & Associates (SKA), a health care
insurance broker with whom SCPIE has an exclusive marketing
relationship for hospitals nationwide, and medical groups and
physician coverage outside of California, through Oct. 1, 1997.



SKA filed for Chapter 11 bankruptcy protection in December
1996. A court proceeding regarding the transaction is expected in
early September 1997, at which time any other prospective
purchasers will have the opportunity to submit higher bids. SKA-
generated premiums represented approximately 13 percent, or $9.0
million, of SCPIE's total premiums earned for the six months
ended June 30, 1997.



Regardless of the outcome of the proposed transaction, SCPIE
can market directly or through other brokers for the business
currently written through the SCPIE-SKA alliance.



SCPIE Holdings successfully completed an initial public
offering of 2.3 million shares of its common stock on Jan. 30,
1997. The offering was managed by Salomon Brothers Inc.



SCPIE Holdings is one of the nation's leading providers of
medical malpractice insurance, based on direct premiums written
in 1996. SCPIE currently insures approximately 9,600 physicians
and oral and maxillofacial surgeons practicing alone or

in medical groups, clinics or other health care organizations.



The company also insures a variety of other health care
providers, including hospitals, emergency department facilities,
outpatient surgery centers and hemodialysis, clinical and
pathology laboratories.



In addition to historical information, this news release
contains forward-looking statements that are based upon the
company's estimates and expectations concerning future events and
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those reflected in the
forward-looking statements. Acturial estimates of losses and loss
expenses and expectations concerning the company's ability to
retain its current insureds and to expand its product lines and
its business into new geographical areas are dependent upon a
variety of factors, including future economic, competitive and
market conditions and future business decisions, all of which are
difficult or impossible to predict accurately and many of which
are beyond the control of the company. In light of the
significant uncertainties inherent in the forward-looking
information herein, the inclusion of such information should not
be regarded as representation by the company or any other person
that the company's objectives or plans will be realized.



                           SCPIE HOLDINGS INC.
                          Statements of Income
                               (Unaudited)
                   (in thousands, except per
                   share data)


                              Three Months Ended 
                                   Six Months
                              Ended
                             June 30,    June 30,
                                 June 30,   June
                             30,
                              1997        1996   
                                   1997      
                              1996
  Revenues:
   Premiums earned         $32,687     $29,623   
     $69,111
  $61,128
   Net investment income    10,637      10,378   
      21,209
  20,939
   Realized investment
     gains                   1,975      (1,308)  
         3,187
  11,496
   Other revenue               150         124   
         289
  124
        Total revenues        45,449      38,817
             93,796     93,687


  Expenses:
   Losses and loss
    adjusting expenses      30,201      27,146   
       63,744
  58,247
   Other operating expenses  4,388       3,166   
       8,583
  6,764
          Total expenses      34,589      30,312
               72,327     65,011


  Income before
   policyholders' dividends
   and federal income taxes
   (benefit)                10,860       8,505   
      21,469
  28,676
   Policyholders' dividends      0       9,000   
           0
  9,000
   Federal income taxes
    (benefit)                2,856        (828)  
        5,344
  5,599


          Net income         $ 8,004     $   333 
              $16,125    $14,077


  Net income per share
   of common stock         $  0.65     $  0.03   
     $  1.35    $
  1.41


  Average shares 
   outstanding          12,294,652  10,000,000  
   11,927,001
  10,000,000


  GAAP Loss Ratio            92.39%      91.64%  
      92.23% 95.29% GAAP Expense Ratio        
  13.42%      10.69%       12.42% 11.07% GAAP
  Combined Ratio       105.82%     102.33%     
  104.65% 106.35%


CONTACT: SCPIE Holdings Inc., Beverly Hills Patrick Lo,
310/557-8711 (investors) Howard Bender, 310/551-5948 (media) or
Pondel Parsons & Wilkinson Craig Parsons, 310/207-9300






Alliance Entertainment Corp. Accepts
Wasserstein Perella Offer for Red Ant; Court Approves Additional
Funding for Red Ant Pending Sale



NEW YORK, NY - Aug. 7 , 1997 - Alliance Entertainment Corp.
(NYSE: CDS) said today that its Board of Directors had approved
an agreement pursuant to which the Company's Los Angeles-based
new release product label, Red Ant Records, would be sold to an
affiliate of Wasserstein Perella & Co. Under the terms of the
agreement with Wasserstein Perella, the Company will receive
$625,000 in cash at closing and will also retain a 10% interest
in the equity of Red Ant. Additionally, Wasserstein Perella will
provide future financing to Red Ant in an amount not less than
approximately $11 million (such amount to be increased to
approximately $19 million under certain circumstances) with not
less than $3 million of such financing to be provided at closing.



The Company said that Wasserstein Perella's proposal was
received in connection with the previously announced solicitation
of bids for Red Ant by Donaldson, Lufkin & Jenrette (DLJ) and
the Company is seeking approval by the Bankruptcy Court of the
offer at a hearing which has been scheduled for August 13, 1997.
Under bankruptcy law, the Wasserstein Perella offer is subject to
competing offers delivered no later than the August 13th hearing
which are determined by DLJ to be higher and better than the
Wasserstein Perella offer. The Company anticipates that the sale
of Red Ant will be consummated soon after the hearing.



In conjunction with the receipt and approval by the Board of
Directors of the Wasserstein Perella proposal to buy Red Ant, the
Court today approved Alliance's request for an additional
$625,000 in funding under its debtor-in- possession financing
agreement to provide for the operation of Red Ant through the
consummation of a sale transaction.



Red Ant is an independent record label specializing in new
product, primarily in the alternative rock and urban music
genres, with a particular focus on the identification and
development of new talent. Red Ant's roster of more than 20
artists includes naked, Mexico 70, Militia, Sunz of Man and
Symposium. The label released its first full-length projects in
the first quarter of 1997.



Alliance Entertainment Corp. and certain of its subsidiaries
voluntarily filed petitions under Chapter 11 of the Bankruptcy
Code on July 14, 1997. Excluded from the original filing were
certain businesses in the Company's Proprietary Products Group,
including Castle Communications, the Company's U.K.-based catalog
and re- issue label; St. Clair Entertainment Group, its Canadian
subsidiary; and Red Ant.



Alliance Entertainment Corp. is a fully integrated,
independent music company with more than 1,300 employees in the
United States, Canada and the United Kingdom. The Company
maintains corporate headquarters in New York and operations
headquarters at its facility in Coral Springs, Florida. Red Ant
employs approximately 65 in its offices in Los Angeles and New
York.



Forward-looking statements herein are made pursuant to the
safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements can
generally be identified as such because the context of the
statement will include words such as the Company
"believes," "expects,"
"anticipates," or words of similar import. Similarly,
statements that describe the Company's future plans, objectives,
estimates or goals are forward-looking statements. There are
certain important factors that could cause results to differ
materially from those anticipated by forward-looking statements
made herein. Investors are cautioned that all forward-looking
statements involve risks and uncertainty.



SOURCE Alliance Entertainment Corp. /CONTACT: Sandra Sternberg
or Ann Julsen of Sitrick And Company, 310-788-2850/






Elder-Beerman Files Plan of
Reorganization



DAYTON, Ohio, August 7 , 1997 - The
Elder-Beerman Stores Corp.
announced today that the company
has filed a plan of reorganization with the United States
Bankruptcy Court in Dayton. The company believes that the
proposed reorganization plan provides for fair and equitable
treatment of all stakeholders.



In addition, Elder-Beerman announced that the Unsecured Trade
Creditors' Committee (subject to certain due diligence items),
the Employee Profit Sharing/Stock Ownership Plan (ESOP) and the
common shareholders (the Beerman/Peal family) support the term
sheet underlying the plan. The company is continuing to negotiate
with the Institutional Creditors' Committee to seek consensual
support for the plan.



"Filing the plan is a major step toward ending our
Chapter 11 case," said Frederick J. Mershad, Elder-Beerman's
President and Chief Executive Officer. "It certainly doesn't
mean our work is over but it does mean we can all begin to see
light at the end of the tunnel. When we do exit Chapter 11, we
will do so as a company that is doing well and which has a bright
future."



Mershad said tremendous progress has been made in the
turnaround of the company. He noted several key accomplishments
which have contributed to the turnaround. They include:



.. Returning to profitability on an operating basis.



.. Increasing comparable store sales to industry levels.



.. Expanding and remodeling programs in markets such as Muncie
and Terre



Haute, Indiana and Findlay, Ohio.



.. Recruiting several key executives to senior management
positions.



.. Eliminating financial drains on the Company by closing
about 60 shoe



stores, liquidating the Margo's LaMode, Inc. specialty apparel
chain,



two Elder-Beerman outlet stores and one furniture store.



Mershad said Elder-Beerman's proposed plan of reorganization
provides creditors and stockholders with combinations of cash,
new common stock and warrants. The proposed reorganization
includes:



.. A recovery in a combination of cash and stock in a new,
publicly- traded Elder-Beerman to pre-petition trade creditors,
holders of unsecured bank debt, insurance company debt, and the
Elder- Beerman Employee Profit Sharing/Stock Ownership Plan
(ESOP).



.. The former common stockholders will receive a combination
of common stock plus two classes of warrants, which could result
in the former common stockholders owning up to 6% of the common
stock of reorganized



Elder-Beerman.



.. A full cash recovery to post-petition lenders; parties to
contracts and leases being assumed (such as landlords),
administrative costs tied to the Chapter 11 case and the
reinstatement of various secured claims.



"We believe the plan we have proposed deserves the
consensual support we have received," said Mershad.
"Our proposed plan represents our best judgment as to what
is fair and equitable and we look forward to emergence from
Chapter 11 bankruptcy protection."



No court date has been set for consideration of the plan. The
company said it will continue to negotiate to finalize a
consensual agreement. The Elder-Beerman Stores Corp. filed for
Chapter 11 bankruptcy protection on October 17, 1995.



With annual sales in fiscal 1996 of $569.6 million, The Elder-
Beerman Stores Corp. is a leading department store company based
in Dayton, Ohio. Elder-Beerman operates 50 department stores in
Ohio, Indiana, Illinois, Michigan, Wisconsin, Kentucky and West
Virginia, as well as two furniture superstores in Ohio. The
company also operates 68 El-Bee and Shoebilee! shoe stores in
seven states.



SOURCE Elder-Beerman Stores Corp./CONTACT: Ginny Focke of
Elder-Beerman Stores Corp., 937-296- 7360/ /Logo available via
NewsCom, 305-448-8411 or http://www.newscom.com/






Colorado Gaming & Entertainment Co.
Announces Second Quarter Results



DENVER, CO - Aug. 7, 1997 - Colorado Gaming &
Entertainment Co. (OTC BB: CGME), parent company of the
Bullwhackers Casinos in Black Hawk and Central City, Colo., and
the Silver Hawk Casino in Black Hawk, announced today results for
the three months ended June 30, 1997, the company's fourth full
quarter of operations since completion of its reorganization on
June 7, 1996.



The company, (CG&E), recorded net income of $74,000, or
$.01 per share, for the second quarter of 1997 on record net
revenues of approximately $13.4 million, or nearly a 10% increase
in net revenues compared to the prior year. The prior year's net
income is not comparable because CG&E's predecessor company, href="chap11.hemmeter.html">Hemmeter Enterprises, Inc., a
private company, was in bankruptcy proceedings, and the prior
year figures reflect an extraordinary gain of approximately $164
million relating to the reorganization.



Earnings before interest, taxes, and depreciation (EBITDA),
increased approximately 17%, from $2.8 million to $3.3 million,
for the 1997 period reflecting the increase in revenues and
expenses associated with the opening of the Silver Hawk Casino of
approximately $380,000 in the 1996 period. In addition, the
current period revenue increases were offset somewhat by certain
costs associated with the company's previously announced joint
venture in Canada and professional fees associated with the
recently announced proposed acquisition of the company.



"We are pleased with the results for the period ended
June 30, 1997," said CG&E President & CEO Stephen J.
Szapor, Jr. "The increase in revenues and EBITDA were
achieved despite disruption to our business as a result of the
extensive excavation and construction activities relating to our
parking expansion and development of the Kids Quest
project," said Szapor.



The company's parking expansion, which was completed in time
for the Memorial Day weekend, provides the company's Bullwhackers
and Silver Hawk Casinos in Black Hawk with approximately 33%
moreparking capacity. The Kids Quest child care and entertainment
center, which is adjacent to the company's operations in Black
Hawk is operated by New Horizons Kids Quest, Minneapolis, and
opened to the public on June 24, 1997.



Colorado Gaming & Entertainment Co. currently owns and
operates three limited stakes casinos in Colorado located in the
adjacent towns of Black Hawk and Central City. The casinos,
operating under the names of Bullwhackers and Silver Hawk, offer
combined gaming space of approximately 25,000 square feet, with
approximately 1,250 gaming devices and 23 gaming tables.



                         Colorado Gaming & Entertainment Co.
                        Consolidated Statements of Operations
                        (in thousands, except per data share)
  


                                                   June 7,   April 1,
  Jan. 1,
                        Three Months  Six Months    1996       1996
  1996
                              Ended      Ended    Through    Through
  Through
  


                             June 30,  June 10,   June 30,    June 6,
  June 6,
  


                             1997(a)    1997(a)    1996(a)     1996
  1996


(Unaudited)(Unaudited)(Unaudited)(Unaudited)(Unaudited)
  


    Revenue:
      Casino               $12,936   $25,391    $3,100    $8,577
  $19,126
      Food and beverage        760     1,594       215       568
  1,288
      Other                     56       119         7        13
  32
        Gross revenue       13,752    27,104     3,322     9,158
  20,446
        Less: promotional
       allowances            (360)     (740)      (77)     (199)
  (464)
        Net revenue         13,392    26,364     3,245     8,959
  19,982
  


        Operating Expenses:
      Casino                 3,476     7,039       591     2,376
  5,544
      Gaming taxes           2,712     4,980       760     1,612
  3,614
      Food and beverage        777     1,629       200       565
  1,299
        General and administrative:
       Casino                  698     1,444       194       523
  1,249
       Corporate               662     1,413       147       387
  902
      Marketing              1,757     3,482       435     1,190
  2,349
        Depreciation and
       amortization          1,482     3,059       396       787
  1,882
      Pre-opening               --        --       341        47
  47
      Reorganization items      --        --        --     1,222
  2,290
        (Gain) Loss on
       disposition of assets  (21)       1O3        --       112
  244
        Total operating
       expenses             11,543    23,149     3,064     8,821
  19,420
  


      Income from operations 1,849     3,215       181       138
  562
  


         Interest expense  (1,657)   (3,399)     (403)     (460)
  (579)
         Interest income        28        58        11        43
  66
  


        Income (loss) before
         income tax provision
       and Extraordinary gain  220     (126)     (211)     (279)
  49
  


      Income tax provision   (146)     (146)
  --        --        --
  


        Net income (loss) before
       extraordinary gain       74     (272)     (211)     (279)
  49
  


        Extraordinary gain from
       reorganization           --        --        --   164,358
  164,358
  


      Net income (loss)       $ 74   $ (272)   $ (211) $ 164,079
  $164,407
  


      Net income (loss)     $ 0.01  $ (0.05)  $ (0.04)       N/A
  N/A
         per common share (b)
  


      (a) Due to the Reorganization and implementation of fresh-start
  accounting pursuant to SOP 90-7, financial statements for the
  Reorganized Company (period starting June 7, 1996) are not
  comparable to those of the Predecessor Company. See Notes to the
  Consolidated Financial Statements for additional information.
  


      (b) The weighted average number of common shares outstanding
  and net income per common share for the Predecessor Company have
  not been presented because, due to the Reorganization and
  implementation of fresh-start accounting, they are not comparable.
  


      The Notes to Consolidated Financial Statements are an integral
  part of the consolidated financial statements.
  


                         Colorado Gaming & Entertainment Co.
                             Consolidated Balance Sheets
                         (In thousands, except share amounts)
  


                                         June 30, 1997  December 31, 1996
                                          (unaudited)
               ASSETS
        Cash                             $4,919         $5,758
        Accounts receivable, net            193            217
        Inventories                         100            106
        Prepaid expenses                    601            406
           Total current assets           5,813          6,487
  


        Property, equipment and
         leasehold improvements, net     42,226         41,322
  


        Excess reorganization value, net 17,598         18,256
  


        Other assets, net                   673            983
  


           Total assets                 $66,310        $67,048
  


        LIABILITIES &
        STOCKHOLDERS' EQUITY
        Current portion of notes payable
         and credit facility              1,436          1,959
        Accounts payable                    563            804
        Accrued interest                    569            542
        Accrued expenses                  4,128          3,483
           Total current liabilities      6,696          6,788
  


        Senior secured notes payable     52,883         52,883
        Other notes payable and credit
         facility, net of current portion 2,053          2,508
  


        Total non-current liabilities    54,936         55,391
  


        Total liabilities                61,632         62,179
  


        Common stock, $.01 par value,
         20 million shares authorized,
         5,236,091 and 5,138,888 issued and
         outstanding, respectively           52             51
        Additional paid-in capital        4,706          4,626
        Retained earnings (deficit)        (80)            192
          Total stockholders' equity      4,678          4,869
          Total liabilities and
           stockholders' equity         $66,310        $67,048
  


The Notes to Consolidated Financial Statements are an integral
part of these consolidated balance sheets.



SOURCE Colorado Gaming and Entertainment Co./CONTACT: Stephen
J. Szapor, Jr., President/CEO or Robert J. Stephens, Vice
President/Treasurer, both of Colorado Gaming & Entertainment
Co. 303-716-5600; or Z. James Czupor, The InterPro Group,
303-871-8909/






Marbledge Announces Preliminary
Results



LAKE WORTH, Fla.-Aug. 7, 1997--The Marbledge Group, Inc. (NASD
Bulletin Board:MBLG) today announced that it expects to file its
annual report on Form 10-KSB for the year ended February 28,
1997, and its quarterly report on Form 10-QSB for the quarter
ended May 31, 1997 by the end of September, 1997.



The company requires additional time to complete its filings
following the recent confirmation of its Plan of Reorganization
by the Federal Bankruptcy Court.



Preliminary results for the 1997 fiscal year, the 12 months to
February 28, 1997 are expected to reflect revenues of
approximately $5.3 million, and for the three months ended May
31, 1997 revenues of approximately $1.2 million. Both periods
will reflect losses largely due to the company's Chapter 11
operating status during such periods.



"Since our reorganization in February, we have secured
several large contracts and are now looking at a healthy business
pipeline," said Jonathan Friedman, Vice President and Chief
Financial Officer of Marbledge, Inc. "Fabrication backlog is
over $1,500,000 and is expected to continue to grow with the
addition of several more contracts which are in the bidding or
negotiation phase. Sales of our tumbled marble product,
"Pietra Rustica" are approximately 15 percent ahead of
last year's sales. We would anticipate revenue growth and
improvement in margins and results for the remainder of the
financial year."



Marbledge recently completed a Reorganization Plan, approved
and confirmed by the United States Bankruptcy Court on February
12, 1997. Since that time the company has secured several
substantial contracts. In July of this year, the company
announced the completion of a $205,000 contract with Ozark
Mountain Granite for the fabrication of granite vanity units in a
luxury Missouri hotel as well as the award of a contract, valued
at $326,000, to carry out all necessary marble and granite work
for an executive building at Schever International Plaza, a new
office complex in Boca Raton, Florida. Today the company
announced that it had been awarded a contract, valued at
$500,000, for refurbishing guest bathrooms at the Disney
Polynesian Resort, Orlando, Florida. It simultaneously announced
the completion of a $400,000 contract for marble work in a large
private luxury residence in the Orlando area.



Marbledge is one of the largest marble and granite fabricators
and installers in the country. The company has two main product
lines, the fabrication and installation of granite and marble for
large residential and commercial projects and the customized
marble product line, Pietra Rustica, which is distributed by over
300 dealers nationwide. -0-



Except for historical information this press release contains
certain forward looking statements that involve risk and
uncertainties which may cause actual results to differ materially
from the statements made. Such factors include, but are not
limited to, changing market conditions, the establishment of new
corporate alliances, the impact of competitive products and
pricing, and other risks detailed from time to time by the
Company or in its filings with the US Securities and Exchange
Commission.



CONTACT: Marbledge, Inc. Jonathan Friedman, 561/585-7400 or
RKC Communications Robert Kneeley, 954/351-1976 email:
rkccomm@safari.net






Western Fidelity Funding, Inc. Seeks
Chapter 11 Protection



DENVER, Aug. 7, 1997 - Western
Fidelity Funding, Inc.
, announced that it filed a petition in
the United States Bankruptcy Court for the District of Colorado
for protection under Chapter 11 of the Bankruptcy Code on August
4, 1997.



In its Annual Report on Form 10-KSB for the year ended
December 31, 1996 which indicated that if it was unable to enter
into satisfactory arrangements with its creditors, obtain
additional financing or enter into a business combination, it was
likely that the Company would have to file for protection from
its creditors under the United States Bankruptcy Code.



Until April 1997, when the Company was forced to limit its
business, Western Fidelity Funding, Inc. was a specialized
consumer finance company engaged in financing the purchase of
used automobiles for borrowers who have limited access to
traditional sources of credit. The Company also acquired dealer
originated retail installment contracts from franchised and
independent automobile dealers in 19 states.



SOURCE Western Fidelity Funding, Inc. /CONTACT: Gene E. Osborn
for Western Fidelity Funding, Inc., 303-477-8404/