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InterNet Bankruptcy Library - News for August 19, 1997

Bankruptcy News For August 19, 1997

  1. Marvel Reports 2Q97 Results

  3. Raytech announces second quarter
            results for 1997

  5. Pudgie's Chicken, Inc. Announces
            Opening of Co-Branded Restaurant

  7. Asensio & Company: Sterling
            Vision's False Takeover Reports Allow Insiders to Sell at
            Inflated Prices

Marvel Reports 2Q97 Results

NEW YORK, NY - Aug. 19, 1997 - Marvel
Entertainment Group, Inc.
(NYSE: MRV) announced that for the
second quarter ended June 30, 1997 net revenues were $129.6
million compared to $182.2 million over the same period in 1996.
The net loss for the second quarter was $41.9 million or $0.41
per share vs. $11.0 million or $0.11 per share last year.

The second quarter losses were due primarily to continued
decline in demand for trading cards, general market softness in
children's entertainment stickers, lower toy sales and small
decreases in publishing and licensing revenues. Concerns on the
part of retailers and others since the Company filed for chapter
11 protection have also affected revenue in these areas. In
addition, the Company continues to incur significant
reorganization costs and general and administrative expenses
associated with the bankruptcy proceedings.

On June 30, 1997, the Company's DIP (debtor in possession)
loan expired and to date no arrangements have been made regarding
the repayment of the principal amount of the loan. The Company
has been negotiating alternative replacement DIP facilities and
continues to pay its trade creditors and to take actions to
improve operating efficiencies, which include trimming its
overhead and reducing exposure to returns. On August 11, 1997,
the Company secured an additional working capital loan for up to
27 billion lire ($15 million U.S.) from a syndicate of banks,
with Chase Manhattan Bank, as agent, on behalf of Panini, S.p.A.,
its wholly owned subsidiary.

On July 10, 1997 the Company reached an agreement in principle
on certain key economic terms with its principal lenders, the
unsecured creditors of Marvel's holding companies, and Toy Biz,
Inc. That agreement in principle contemplates, among other
things, the Company's emergence from chapter 11 protection, the
settlement of the Company's obligations under its prepetition and
DIP loans, the actions of Panini and Fleer/SkyBox, and the merger
of Toy Biz with Marvel. The agreement in principle is subject to
further negotiation of several substantive issues, as well as the
execution of definitive agreements, approvals of the Boards of
Directors of Marvel and Toy Biz, the holders of a majority of the
Company's secured debt, and the Bankruptcy Court. Negotiation
between the Company and the other parties to the agreement in
principle to finalize the terms of the proposed global settlement
are on-going.

Marvel Entertainment Group, Inc. is a leading youth
entertainment company. Operations include publishing of comic
books, trading cards and activity stickers; marketing and
distribution of toys; and licensing of its characters for
consumer products, media and advertising promotions.

FORWARD-LOOKING STATEMENTS Statements in this news release and
in the quarterly report on Form 10-Q for the quarter ended June
30, 1997 such as "intend," "estimated,"
"believe," "expect," "anticipate"
and similar expressions which are not historical are
forward-looking statements that involve risks and uncertainties.
Such statements include, without limitation, the Company's
expectation as to future financial performance. In addition to
factors that may be described in the Company's Securities and
Exchange Commission filings, the following factors, among others,
could cause the Company's financial performance to differ
materially from that expressed in any forward-looking statements
made by, or on behalf of, the Company: (i) the ability of the
Company to successfully reorganize in bankruptcy and the timing
and outcome of such bankruptcy proceedings; (ii) the ability of
the Company to obtain an additional or new DIP loan or other
financing; (iii) continued weakness in the comic book market
which cannot be overcome by the Company's new editorial and
production initiatives in comic publishing; (iv) continued
general weakness in the trading card market; (v) the failure of
fan interest in baseball to return to traditional levels that
existed prior to the 1994 baseball strike thereby negatively
affecting the Company's baseball card business; (vi) the
effectiveness of the Company's changes to its trading card and
publishing distribution; (vii) a decrease in the level of media
exposure or popularity of the Company's characters resulting in
declining revenues based on such characters; (viii) the lack of
continued commercial success of properties owned by major
licensors which have granted the Company licenses for its sports
and entertainment trading card and sticker businesses; (ix)
unanticipated costs or delays in completing projects associated
with the Company's new ventures including media, interactive
software and on-line services and theme restaurants; (x) consumer
acceptance of new product introductions, including those for
toys; and (xi) imposition of tariffs or import quotas on toys
manufactured in China as a result of a deterioration in trade
relations between the U.S. and China.

                           MARVEL ENTERTAINMENT
                           GROUP, INC.
                        Consolidated Statements
                        of Operations
                     (Dollars in millions, except
                     per share data)

                                          For the

                                          For the
                                   Three Months
                                   Ended    Six


     Net revenues                  $129.6   
     $182.2     $286.3
     Cost of sales                   96.4    
     115.4      200.9
     Selling, general &
      administrative expenses        51.5     
      55.6      100.0
     Depreciation and amortization    7.7      
     4.9       12.5
     Amortization of goodwill,
        intangibles and
      deterred charges                4.1      
      5.5        8.4
     Interest expense, net
        (contractual interest for
        the three and six months
        ended June 30, 1997
        was $16.9 and $32.5,
      respectively)                  13.2     
      13.8       28.8
     Foreign exchange loss/
      (gain), net                    (0.8)     
      0.9       (1.5)
     Equity in net (loss) income
        of unconsolidated
        subsidiaries and
      other, net                     (5.3)     
      0.4       (5.2)
     Loss before reorganization
        items, benefit for income taxes,
      and minority interest         (47.8)   
      (13.5)     (68.0)
     Reorganization items             2.6       
     --        6.0
     Loss before benefit
        for income taxes and
      minority interest             (50.4)   
      (13.5)     (74.0)
     Benefit for income taxes        (4.6)    
     (5.4)      (0.8)
     Loss before minority interest  (45.8)    
     (8.1)     (73.2)
     Minority interest in (loss)
      earnings of Toy Biz            (3.9)     
      2.9       (3.5)
     Net loss                      ($41.9)  
     ($11.0)    ($69.7)
     Loss per share                 ($.41)   
     ($.11)     ($.68)
     Common shares outstanding
      (in millions)                 101.8    
      101.8      101.8

SOURCE Marvel Entertainment Group, Inc./CONTACT: Bruce Berman
of Brody Berman Associates, 212-490-0090, for Marvel
Entertainment Group/

Raytech announces second quarter results
for 1997

SHELTON, Conn.--Aug. 19, 1997--Raytech
(NYSE:RAY) today announced net income for the
thirteen- week period ended June 29, 1997 amounted to $5,143 or
$1.46 per share as compared with $4,592 or $1.31 per share for
the corresponding period in 1996. For the twenty-six week period,
net income amounted to $9,425 or $2.68 per share compared with
net income of $8,283 or $2.40 per share for the same period in
1996. The overall improvement is the result of increased sales in
the domestic market segments and a reversal of environmental
accruals no longer required, partially offset by lower margins
due to competitive pricing pressues. European sales decreased
primarily due to foreign currency fluctuation.


During the first quarter of 1996, the company acquired certain
assets from Advanced Friction Materials Company in Sterling
Heights, Mich., and also acquired a 47% equity interest in AFM.

Net Sales Up 6.9%

Net Sales for the thirteen-week period ended June 29, 1997
increased 1.0% to $60,760 as compared with $60,142 for the same
period one year ago. Net sales for the twenty-six week period
ended June 29, 1997 increased 6.9% to $119,881 as compared with
$112,179 for the same period one year ago. The overall twenty-six
week improvement is primarily due to additional sales of
approximately $4,319 related to the Sterling Heights operations
and additional volume within the domestic automotive, agriculture
and construction product market segments. Excluding Sterling
Heights, domestic sales increased by $5,151 compared to last
year. However, European sales decreased by $1,768 primarily due
to foreign currency fluctuation.

The company has been under the protection of the U.S.
Bankruptcy Court relating to asbestos personal injury and
environmental liabilities since March 1989. The ultimate
liability of the company with respect to asbestos-related
environmental or other claims cannot presently be determined.

Raytech Corp. is headquartered in Shelton, Conn., with
operations serving world markets for energy absorption and power
transmission products, as well as custom-engineered components.

                      (000's omitted, except
                      share data)

  Comparative results are as follows:

                     For the 13 weeks ended    
                     For the 26 Weeks Ended June
                     29       June 30       June
                     29       June 30,
                      1997          1996         
                      1997          1996

  Net Sales       $ 60,760      $ 60,142    
  $119,881      $112,179

  Net income      $  5,143      $  4,592     $ 
  9,425      $  8,283

  Net income
   per share(a)   $   1.46      $   1.31     $  
   2.68      $   2.40

   average shares
   outstanding    3,525,023     3,493,306  
   3,523,075     3,449,201

(a) The company has been under the protection of the U.S.
Bankruptcy Court relating to asbestos personal injury and
environmental liabilities since March 1989. The ultimate
liability of the company with respect to asbestos-related,
environmental or other claims cannot presently be determined.

CONTACT: Raytech Corp., Shelton A.A. Canosa, 203/925-8000

Pudgie's Chicken, Inc. Announces Opening
of Co-Branded Restaurant

UNIONDALE, N.Y., Aug. 19, 1997 - Pudgie's
Chicken, Inc.
(OTC: PUDGQ) announced today the opening of its
first co-branded Long Island restaurant. The restaurant is owned
and operated by Blimpie International Franchisee, Hempstead Food
Court, Inc. This 3,000 square foot restaurant, which showcases a
full-service Pudgie's Chicken and Blimpie's restaurant, is
located near Hofstra University at 632 Fulton Avenue, Hempstead.

Steven Wasserman, CEO of Pudgie's, said, "The combination
of Blimpie sandwiches, representing a strong lunch daypart,
together with Pudgie's Famous Chicken, representing a strong
dinner daypart, bodes well for maximizing sales per square foot
in this restaurant. We believe co-branding our concept permits
our franchisee to cut costs by sharing real-estate, management
and equipment expenses." Pudgie's Chicken currently
co-brands with Subway and Baskin Robbins.

In other news, Pudgie's announced on August 18, 1997 an
agreement with ReCap Partners, LLC to help fund its
Reorganization Plan. Pudgie's second international store in
Jakarta, Indonesia is slated to open later this month.

Pudgie's Chicken announced on September 18, 1996 that it had
filed a voluntary petition for reorganization under Chapter 11 of
the Bankruptcy Code.

Pudgie's Chicken operates and franchises quick service
Pudgie's Famous Chicken restaurants with an emphasis on home
delivery that offer tasty, reasonably priced meals featuring
fresh skinless fried chicken. Pudgie's also offers a
"spicy" chicken menu, barbecued ribs, shrimp, corn on
the cob, mashed potatoes, rice, salads, and other side dishes.

You can also contact Pudgie's on their Web Site
HTTP://ISON.COM/PUDGIES/ This release contains certain
forward-looking statements which involve known and unknown risks,
uncertainties or other factors not under the Company's control
which may cause actual results, performance or achievements of
the Company to be materially different from the results,
performance, or other expectations implied by these
forward-looking statements. These factors include, but are not
limited to, those detailed in the Company's periodic filings with
the Securities and Exchange Commission.

SOURCE Pudgie's Chicken, Inc. /CONTACT: Steven Wasserman,
President & CEO of Pudgie's Chicken, Inc., 516-222-8833; or
Joe Calabrese of The Financial Relations Board, 212-661-8030/

Asensio & Company: Sterling
Vision's False Takeover Reports Allow Insiders to Sell at
Inflated Prices

NEW YORK, NY - Aug. 19, 1997 - The following release was
issued today by Asensio & Company:

Investors have bid-up Sterling Vision's (Nasdaq: ISEE) stock
based on completely false yet widely published reports of large
"smart-money" buying based on an anticipated
"buyout" and a "share buyback" plan. Neither
of these events is remotely possible and institutions have been
selling not buying. Sterling Vision is a poor performing,
financially troubled company with no prospects of being sold at a
premium price, and no ability to repurchase its shares. In fact,
Sterling Vision recently registered over 3.2 million of its
shares on behalf of certain selling shareholders. The terms of
Sterling Vision's recent private offering assure that these
selling shareholders are able to sell their shares into the
market at a profit. The selling has occurred without notice to
existing shareholders or the public. Sterling Vision will receive
none of the proceeds from these stock sales.

Sterling Vision operates in a fragmented, low growth, highly
competitive segment of the retail industry. The Company has
negative cash flow, declining margins, rapidly deteriorating same
store sales, and is controlled by conflict-riddled, highly
controversial part-time managers. Even without accounting for
these negative factors, based on the best case valuation of its
assets, Sterling Vision is worth far less than its current $124
million market capitalization. Sterling Vision is much more
likely a candidate for bankruptcy than a takeover target at any
price, much less at a price higher than its current grossly
overvalued $8- 1/8 per share stock price.

Asensio & Company, Inc. is a New York-based institutional
investment bank specializing in corporate valuations and equity
research. The firm's published research reports, including a copy
of this report and subsequent updates, are available on Asensio
& Company's Internet home page located at

SOURCE Asensio & Company -0- 8/19/97 /CONTACT: Manuel
Asensio of Asensio & Company, 212-702-8805/