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InterNet Bankruptcy Library - News for August 27, 1997







Bankruptcy News For August 27, 1997




        
  1. Caldor Receives Extension of
            Exclusivity Period

  2.     
  3. Leslie Fay Reports Financial Results
            For Second Quarter; Sales And Earnings Increase On
            Pro-Forma Basis






Caldor Receives Extension of Exclusivity
Period



NORWALK, Conn.--August 27, 1997--The href="chap11.caldor.html">Caldor Corporation (NYSE: CLD)
announced today that the U.S. Bankruptcy Court for the Southern
District of New York has granted the Company an extension of the
period under which it has the exclusive right to file a plan of
reorganization with the court.



With the full support of its creditor, bank and equity
committees, Caldor received an extension of the exclusivity
period through February 28, 1998. Likewise, the period in which
the Company can solicit acceptances for the reorganization plan
has been extended through April 30, 1998. This represents a
six-month extension of the exclusivity period, which had
previously run through September 1, 1997.



Warren D. Feldberg, Chairman and Chief Executive Officer,
commented, "Caldor has been making solid progress under its
five- year business plan, and we are seeing positive results from
the actions we are taking. We are pleased to have the continued
support of the creditor, bank and equity committees, and this
extension will enable us to implement our strategies through the
back-to-school and fourth quarter periods and to make refinements
as appropriate. Ultimately, this plan will serve as the
foundation for Caldor's plan of reorganization.



"In addition, our new bank agreement, approved by the
court on June 4, 1997, has extended Caldor's $450 million DIP
facility through June 15,1998 and will provide us with
substantial excess availability as we carry out our plans.
Overall, we are very encouraged by our progress and believe our
marketing, merchandising and financial strategies will position
us for a return to profitability and growth," Mr. Feldberg
said.



The Caldor Corporation is the fourth largest discount
department store chain in the U.S., with annual sales of
approximately $2.6 billion and approximately 21,000 Associates.
It currently operates 157 stores in ten East Coast states. With a
strong consumer franchise in high density urban/suburban markets,
Caldor offers a diverse merchandise selection, including both
softline and hardline merchandise.



CONTACT: Kekst & Co., New York Wendi Kopsick/Jim Fingeroth
212/521-4800






Leslie Fay Reports Financial Results For
Second Quarter; Sales And Earnings Increase On Pro-Forma Basis



NEW YORK, NY --Aug. 27, 1997--The
Leslie Fay Company, Inc.
today reported financial results for
the second quarter and first six months of its current fiscal
year. These unaudited results have been prepared on a pro-forma
basis to reflect the disposition of the Sassco Fashions and
Castleberry divisions and to include "fresh start"
adjustments resulting from the company's emergence from chapter
11 bankruptcy protection on June 4, 1997.



For the 13 weeks ended July 5, 1997, Leslie Fay reported net
sales of $23.2 million, compared to $20.0 million in the
comparable period a year ago. The company's operating income in
the second quarter was $1.9 million, compared to an operating
loss of ($685,000) in the 1996 second quarter. Net income in the
second quarter was $1.7 million, or $0.50 per share, compared to
a net loss of ($952,000), or ($0.28) per share, in the year- ago
period. The per-share data for both periods has been calculated
using 3.4 million outstanding shares of Leslie Fay common stock
(of which 20 percent are not currently trading due to a hold back
by the bankruptcy court). On a fully diluted basis, assuming a
total of 4.1 million common shares (including unexercised options
granted to management), Leslie Fay's net income in the second
quarter of 1997 was $0.41 per share compared to a net loss of
($0.23) per share in the 1996 second quarter.



For the 27 weeks ended July 5, 1997, Leslie Fay had net sales
of $64.6 million, compared to $47.6 million in the comparable
period a year ago. The company's operating income in the first
half of 1997 was $7.7 million, compared to an operating loss of
($361,000) in the 1996 first half. Net income in the first six
months of 1997 was $6.9 million, or $2.03 per share, compared to
a net loss of ($838,000), or ($0.25) per share, in the year- ago
period. On a fully diluted basis, Leslie Fay's net income in the
first half of 1997 was $1.66 per share compared to a net loss of
($0.20) per share in the comparable period in 1996.



The company said the improved financial performance during the
1997 periods is the result of increased sales, higher gross
margins, and reduced expenses as compared to the same periods in
1996.



"The new Leslie Fay is off to a promising start,"
said John J. Pomerantz, Chairman and Chief Executive Officer of
The Leslie Fay Company, Inc. "We are clearly benefitting
from having put our previous issues behind us and being able to
focus entirely on the business. Consumers are responding warmly
to our revamped product lines, and orders from our department
store customers have been encouraging."



As previously reported, Leslie Fay's plan of reorganization
was confirmed by the U.S. Bankruptcy Court on April 21, 1997 and
became effective on June 4, 1997. In accordance with the plan of
reorganization, Leslie Fay's previous equity has been
extinguished and the former Sassco Fashions and Castleberry
divisions have become independent companies. Stock in the new
Leslie Fay trades over the counter. Leslie Fay has filed a
quarterly report (form 10- Q) covering the pre-and post-chapter
11 period with the Securities and Exchange Commission.



Founded in 1947, The Leslie Fay Company, Inc. is a leading
manufacturer of women's apparel, including dresses and
sportswear. Its brands include Leslie Fay, Haberdashery,
Outlander, and HUE.



              The Leslie Fay Company, Inc. and
              Subsidiaries
                     Reorganized as of June 4,
                     1997


              Condensed Consolidated Financial
              Information
                  (In thousands, except per share
                  data)


               Proforma to Exclude the Sassco
               Fashion and
                         Castleberry Divisions
                and to Include Fresh Start
                Adjustment


                                          First
                                          Half
                                          Proform
                                          a
                                    Twenty-Seven
                                         


                                    Twenty-Six  
                                   Weeks ended   
                                       Weeks
                                   ended


                                       July 5,   
                                             


                                       June 29,
                                        1997     
                                                


                                        1996


  Net sales                        $ 64,604      
      $ 47,624


  Gross profit                       16,785      
        10,563


  Selling, warehouse, general
   and administrative expenses
   (net of licensing revenue)        11,367      
         13,210


  Amortization of excess revalued
   net assets over equity            (2,286)     
         (2,286)


  Operating income (loss)             7,704      
          (361)


  Net interest expense and 
   financing costs                      675      
            392


  Income (loss) before provision
   for income taxes                   7,029      
           (753)


  Provision for Income taxes            128      
            85


  Net income (loss)                  $6,901      
         ($838)


  Net income (loss) Per share
   of common stock       Basic        $2.03      
         ($0.25)
                           Assuming
                           Dilution     $1.66    
                                   ($0.20)


  Weighted Average Common Shares
   Outstanding           Basic        3,400      
          3,400
                           Assuming
                           Dilution     4,146    
                                    4,146


  EBITDA                              5,418      
        (2,647)


                                        Second
                                        Quarter
                                        Proforma
                                      Thirteen   
                                           


                                      Thirteen
                                   Weeks ended   
                                      Weeks ended


                                       July 5,   
                                             


                                       June 29,
                                        1997     
                                                


                                        1996


  Net sales                        $ 23,209      
      $ 19,989


  Gross profit                        5,555      
         3,897


  Selling, warehouse, general
   and administrative expenses
   (net of licensing revenue)         4,762      
          5,725


  Amortization of excess revalued
   net assets over equity            (1,143)     
         (1,143)


  Operating income (loss)             1,936      
          (685)


  Net interest expense and 
   financing costs                      229      
            215


  Income (loss) before provision
   for income taxes                   1,707      
           (900)


  Provision for Income taxes             12      
            52


  Net income (loss)                  $1,695      
         ($952)


  Net income (loss) per share
   of common stock       Basic        $0.50      
         ($0.28)
                           Assuming
                           Dilution     $0.41    
                                   ($0.23)


  Weighted Average Common Shares
   Outstanding           Basic        3,400      
          3,400
                           Assuming
                           Dilution     4,146    
                                    4,146


  EDITDA                                793      
        (1,828)


  Note:  The Net Income (Loss) Per Share of
  Common Stock calculations


  for both the Twenty-six and Thirteen Weeks
  Ended June 29, 1996 use the Weighted Average
  Common Shares Outstanding as of July 5, 1997.


                                    (Unaudited)
                                       as of July
                                       5,
                                        1997


  Balance Sheet Data:
   Total Assets                     $75,280
   Total Liabilities                 36,879
   Excess of Revalued           
    Assets Over Equity    
    Under 'Fresh Start'              13,327
   Stockholders' Surplus             25,074


CONTACT: Michael Freitag Kekst and Company (212) 593-2655