Emerald Isle Bancorp Announces Loan Loss
Recovery
QUINCY, Mass.--Aug. 21, 1997--Emerald Isle Bancorp Inc.,
(NASDAQ SYMBOL:EIRE) has announced receipt of a cash payment from
the Trustee in Bankruptcy for the Bennett
Funding Group Inc., in the amount of $724,055 on August 14,
1997. The payment relates to loans secured by leases originally
made by the corporation to the Bennett Funding Group Inc. of
Syracuse, N.Y., that in conjunction with, the corporation booked
an extraordinary loan loss of $1.0 million in March of 1996.
Subsequent to the filing of a lawsuit by the U.S. Attorney's
office in New York and the Securities and Exchange Commission
against Bennett Funding for misrepresentation and factual
omissions related to the selling of equipment leases which
accused the company of running a massive Ponzi scheme, the
Bennett Funding Group filed for bankruptcy under Chapter XI.
On June 24, 1997 the corporation entered into an agreement
with the Trustee in Bankruptcy by which the corporation, over a
two year period will receive payments in settlement of all of its
outstanding claims up to a maximum of $1,120,000. This represents
approximately 80 percent of the remaining outstanding balance due
of $1.41 million prior to the provision and related charge off
for $1.0 million taken by the corporation in March of 1996.
The agreement calls for the corporation to receive an initial
payment, net of servicing fees and payments to the Debtors
Estate, of $724,055 which represents 78.5 percent of the cash
payments received by the Trustee from the underlying leases since
the date of the Bankruptcy filing. By the terms of the agreement
additional cash payments will be received monthly, as the cash is
collected by the Trustee, over the next 18-24 months of
approximately $396,000 up to the maximum total recovery to the
corporation of $1,120,000.
In conjunction with the receipt of the initial payment of
$724,055 the corporation has booked a recovery to its loan loss
provision in the amount of $660,000 and used the balance of the
payment to reduce the carrying value of its remaining investment
in the Bennett Funding Leases from $411,000 to $364,000. The
balance of the corporation's loans remains secured by the cash
flow from the underlying leases by agreement with the Trustee in
Bankruptcy.
The recovery of $660,000 results in an increase in the
corporation's loss allowance from $2.58 million to $3.24 million
and as a percentage of loans outstanding, from .89 percent to
1.12 percent. After the recovery, loan loss reserves as a
percentage of nonperforming loans is 219.8 percent.
Mark A. Osborne, chairman of the board and chief executive
officer, stated, "while our investment in Bennett Funding
leases did not produce the results originally desired, this
recovery is a direct result of the initial due diligence
conducted by the corporation when originating the loans involved.
The due diligence involved resulted in our investing in only
legitimate leasing transactions, and securing our investment
appropriately. We did not get caught up in the Ponzi scheme that
defrauded other institutional and individual investors of
millions of dollars. Although we brought litigation in the
Bankruptcy Court in New York directed at recovering all of our
investment with interest, we elected to negotiate a settlement
with the Trustee in order to avoid a prolonged legal battle. As a
result of receipt of the initial payment of $724,055 and related
recovery we have decided to suspend monthly loan loss provisions
for the balance of 1997." -0-
Emerald Isle Bancorp, Inc., is the parent company of The
Hibernia Savings Corporation, a full service, state-chartered
stock savings corporation. The executive office of Emerald Isle
Bancorp, Inc. is located at 730 Hancock Street, Quincy, Mass.
CONTACT: Emerald Isle Bancorp MaryBeth Sorgi 617/479-5001
Ugly Duckling Corp. Purchases Secured Bank Debt of
PHOENIX, AZ --Aug. 21, 1997--Ugly Duckling Corp.
(Nasdaq/NM:UGLY) Thursday announced that it has closed the
purchase of approximately 78 percent of the senior bank debt of
Corp. (Nasdaq/NM:FMACE) held by seven members of that
company's nine-member bank group.
The bank group's total senior debt equals approximately $100
million. FMACE filed for reorganization under Chapter 11 of the
Federal Bankruptcy Code on July 11, 1997.
The more significant terms of the purchase provided, among
other things, for (1) purchase of the debt at a 10 percent
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 percent with an up-front
payment by Ugly Duckling to the bank group equal to 20 percent of
the purchase price; and (3) issuance of stock warrants to the
bank group to purchase up to 390,000 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.
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, engaged primarily 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 could 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 would 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 April 21, 1997, and its related Prospectus
Supplement No. 3, dated July 18, 1997, in the sections titled
``Factors That May Affect Future Results and Financial
Condition'' and ``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., Phoenix Steven T. Darak,
602/852-6600 or Silverman Heller Associates, Los Angeles Eugene
Heller or Lori Parks, 310/208-2550
Bankruptcy Court to Approve Today's Man
Amended Disclosure Statement
MOORESTOWN, N.J., Aug. 21, 1997 - Today's
Man (Nasdaq: TMANQ) announced today the United States
Bankruptcy Court, District of Delaware, has approved its
disclosure statement, subject to expansion of disclosure on
several items. Under the terms of the plan, Today's Man creditors
will receive full recovery of their allowed claims through a
combination of cash and $15 million in equity in the reorganized
Company.
"Approval of our disclosure statement will remove one of
the final hurdles to our emergence from Chapter 11," said
David Feld. "I am pleased that our dramatic turnaround
enables us to provide full recovery to our creditors. At the same
time, the financing of our plan leaves the Company with a healthy
balance sheet for a moderate expansion plan and ongoing
operations."
The Court has set a date of November 19, 1997 for Today's
Man's confirmation hearing.
Today's Man, Inc., which currently operates 25 menswear
superstores in the greater Philadelphia, New York and Washington
markets, is a men's apparel superstore retailer offering a wide
selection of tailored clothing, furnishings, sportswear and shoes
at everyday low prices.
SOURCE Today's Man, Inc. /CONTACT: Frank E. Johnson, Executive
Vice President and C.F.O. of Today's Man, 609-722-6380; or
Carreen Winters of MWW/Strategic Communications, 201-507-9500, or
cwintersmww.com, for Today's Man/