/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/971118.MBX T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, November 18, 1997, Vol. 1, No. 61 Headlines BCCI: Liquidators Project Second Dividend to Creditors FIRST MERCHANTS: Ugly Duckling Completes Agreements GAYLORD COS.: Files For Chapter 11 Protection FLAGSTAR: Court OK's Deloitte & Touche FLAGSTAR: Directors of Reorganized Flagstar HOKKAIDO AKUSHOKU BANK: A Top Japanese Bank Insolvent KOENIG: Requests Bar Date MAIDENFORM: NCC Industries Seeks Approval To Sell Assets MAIDENFORM: Seeks Accounts Receivable Deal with Creditek MARVEL: Toy Biz Reports Third Quarter Financial Results PAYLESS CASHWAYS: Seeks To Allow Certain Claims as Scheduled PUDGIE'S CHICKEN: Third Quarter Results RDM SPORTS GROUP: Foothill Responds to Flexible Flyer Sale TOWN & COUNTRY : Files Pre-Arranged Plan VOICE POWERED TECHNOLOGY: Status of Case MEETINGS, CONFERENCES & SEMINARS -------- BCCI: Liquidators Project Second Dividend to Creditors ------------------------------------------------------ At a meeting of the Depositors' Protection Association held in Westminster last week, the Court-appointed Liquidators for Bank of Credit and Commerce International announced that BCCI creditors are likely to see a second dividend by the summer of next year. The Liquidators project the second dividend will be 11.5 cents-on-the-dollar, but could be as high as 15.5 cents-on-the-dollar. The first dividend, paid last year, paid 24.5% to BCCI creditors. CRAIG CONSUMER: Seeks To Reject Employee Contracts -------------------------------------------------- Craig Consumer Electronics, Inc. has filed a motion for Court approval authorizing the rejection of the employment contracts with Bonnie Metz, Managing Director, Hong Kong; Richard I. Berger, President, Chief Executive Officer and Chairman of the Board of Directors, and Anthony Mirando, Senior Vice President and Director of Sales. Debtor's decision to reject the employment agreements are based on the debtor's best business judgment. FIRST MERCHANTS: Ugly Duckling Completes Agreements --------------------------------------------------- Ugly Duckling Corp. announced that it has entered into several agreements related to the secured senior bank debt and other aspects of the operations of First Merchants Acceptance Corporation. On July 11, 1997, FMAC filed for reorganization under Chapter 11 of the Federal Bankruptcy Code. On August 21, 1997, Ugly Duckling announced that it had closed the purchase of approximately 78 percent of the secured senior bank debt from a group of commercial banks at a 10 percent discount. Now, Ugly Duckling announced that it has entered into an agreement to purchase the remaining 22 percent of FMAC's senior debt, subject to certain conditions precedent. The senior debt currently totals approximately $85 million. FLAGSTAR: Court OK's Deloitte & Touche -------------------------------------- On November 7, 1997 the Bankruptcy Court approved the employment of Deloitte & Touche as accountants to the debtors on a nunc pro tunc basis. FLAGSTAR: Directors of Reorganized Flagstar -------------------------------------------- The Directors of Reorganized Flagstar are: James B. Adamson, Chairman (Flagstar/Chairman, President, CEO) Robert H. Allen (R.H. Allen Associates/Marketing) Ronald E. Blaylock (Blaylock & Partners, LP/ President and CEO) Robert Marks (Marks Ventures,Inc./President) Charles F. Moran (Sears Roebuck & Co./Sr. Vice President, Retired) Elizabeth A. Sanders (The Sanders Partnership/Advisor, Marketing) Donald R. Shepherd (University of Michigan/ Charitable Activities) Two Directors to be selected in accordance with the Confirmation Order. GAYLORD COS.: Files For Chapter 11 Protection --------------------------------------------- The Columbus Dispatch reported on November 16, 1997 that Gaylord Cos., the locally based parent of six Little Professor Bookstores and six Cookstores, said yesterday it has filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Gaylord, which raised $2.2 million in an initial public offering in October 1995, reported sales of $12.3 million in 1996 and $13.7 million in 1995. HOKKAIDO TAKUSHOKU BANK: A Top Japanese Bank Insolvent ------------------------------------------------------ Hokkaido Takushoku Bank Ltd., one of Japan's top 10 commercial banks, collapsed on Monday, marking the country's worst banking failure since World War II. Executives of the Sapporo-based Hokkaido Takushoku Bank announced yesterday that their institution was effectively bankrupt. All of the bank's senior executives formally resigned after the announcement. The bank's president, Sadamasa Kawatani blamed Hokkaido Takushoku's woes on bad loans made during the speculative 1980s. Kawatani said his bank's operations and assets, excluding non-performing loans, would be transferred to North Pacific (Hokuyo) Bank Ltd., a regional bank on the northern island of Hokkaido, "in a few months." KOENIG: Requests Bar Date ------------------------- Koenig Sporting Goods, Inc. requests that the Court fix a date by which any and all proofs of claim must be filed. The debtor claims that in order to consider the feasibility of and confirmation of any plan of reorganization, the debtor must assess the magnitude of claims that have been or may be made against the debtor. The debtor requests that the Bar Date be set for 60 days from the date the Court enters the Order granting this Motion. MAIDENFORM: NCC Industries Seeks Approval To Sell Assets -------------------------------------------------------- On December 1, 1997 NCC Industries, Inc., one of the debtors in possession in the Maidenform Worldwide, Inc., et al. Chapter 11 case, will seek an order authorizing the debtor's sale of its assets located at 165 South Main Street, Cortland, New York, to ASSA International Corp. for a purchase price of $600,000. MAIDENFORM: Seeks Accounts Receivable Deal with Creditek --------------------------------------------------------- On December 1, 1997, Maidenform Worldwide, Inc. will seek approval of the Court to enter into an accounts receivable outsourcing agreement with Creditek Corporation. According to the debtor, their accounts receivable management function currently costs approximately $490,000 per year in salaries and other related expenses. By outsourcing their accounts receivable functions to Creditek, The debtors claim that they would improve their current accounts receivable capabilities and save money, as the price for Creditek's services is approximately $360,000 per year. MARVEL: Toy Biz Reports Third Quarter Financial Results ------------------------------------------------------- Toy Biz, Inc. reported financial results for the third quarter ended September 30, 1997. For the quarter, net sales were $40.8 million with a net loss of $11.2 million, or $0.41 per share, compared to net sales of $83.4 million and net income of $11.4 million or $0.42 per share in the third quarter a year ago. For the nine months ended September 30, 1997, net sales were $109.6 million with a net loss of $16.0 million or $0.58 per share, compared to net sales of $167.6 million and net income of $19.2 million or $0.70 per share for the first nine months of 1996. The Company noted that the 1997 third quarter results continued to be negatively impacted by extraordinary charges, including professional service fees, sales allowances and other transaction costs, relating to its involvement in the Marvel Entertainment Group bankruptcy and its proposal to combine Toy Biz with Marvel. As previously announced, Toy Biz has put forward a proposal to merge Toy Biz and Marvel. Under the terms of the proposal, the senior secured lenders of Marvel would receive a combination of cash and preferred and common securities in the combined company. Toy Biz stockholders (other than Marvel), would receive one share of common stock in the combined entity for every share of Toy Biz common stock. Pre-petition unsecured creditors of Marvel and Marvel equity holders would receive warrants and subscription rights, respectively, issued by the combined company. Toy Biz further announced that senior secured lenders of Marvel representing more than one-third of the outstanding amount of Marvel's senior secured debt have agreed to support Toy Biz's plan to combine with Marvel. Toy Biz will continue to seek the consent of the remaining Marvel lenders in order to reach the two-thirds threshold that the proposal requires by November 21,1997. If it obtains the requisite consents from Marvel's lenders, Toy Biz will seek to have the proposal approved by the Bankruptcy court through confirmation of a plan of reorganization. PAYLESS CASHWAYS: Seeks To Allow Certain Claims as Scheduled ------------------------------------------------------------ Approximately 5,900 proofs of claim or interest totaling in excess of $1.4 billion have been filed against Payless Cashways, Inc. Many proofs of claim were filed with no stated claim, which Payless believes signifies the claimant's agreement with the scheduled amount. Payless seeks an Order allowing such claims at the scheduled amounts. A hearing will held on the motion on December 10, 1997. PUDGIE'S CHICKEN: Third Quarter Results ---------------------------------------- Pudgie's restaurants, announced today its results for the third quarter ended September 30, 1997. The Company, which filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on September 18, 1996, incurred a third quarter loss of $550,225 or $0.12 per share, as compared to a net loss of $4,367,904 or $0.98 per share for the comparable period last year. The net loss for the nine month period ended September 30, 1997, was $1,896,926, or $0.42 per share, as compared to a net loss of $6,408,762, or $1.43 for the nine month period ended September 30, 1996. Approximately 41% of the Company's 1997 losses through September 30, 1997 were the result of non-recurring items and bankruptcy related costs. Total revenue for the 1997 third quarter was $1,631,816 as compared to $3,223,448 for the same period last year, due to the net decrease in the number of Company-owned restaurants and the decrease in franchised restaurants from September 30, 1997 compared to September 30, 1996 as well as declining same-store sales resulting from decreased advertising expenditures. On October 3, 1997, the Company filed a Plan of Reorganization and related disclosure statement. If approved by the Court at a hearing scheduled for November 25, 1997, the Plan of Reorganization will be submitted to a vote by the Company's creditors and stockholders. RDM SPORTS GROUP: Foothill Responds to Flexible Flyer Sale ---------------------------------------------------------- Foothill Capital Corporation, as agent for a group of lenders, creditors of the debtor, RDM Sports Group, Inc., et al. has filed a response to the debtors' motion for an order approving certain elements of the Asset Purchase Agreement relating to the sale of certain assets of Sports Group, Inc. (Flexible Flyer Division). Foothill generally agrees with and supports the agreement. Specifically, Foothill does not object to a "break-up" fee, so long as the Court inquires into and determines that any such fee is reasonable under the circumstances. Foothill does not object to the proposed "no-shop" provision of the Asset Purchase Agreement provided it is clear that Foothill, the Creditors Committee and the Bondholders Committee are not in any way prohibited from finding another entity that would purchase the Flexible Flyer Division assets at a price higher than that proposed under the Asset Purchase Agreement. Foothill does not object to the "right of first refusal" so long as that right does not impair the ability to conduct an auction of the Flexible Flyer Division. TOWN & COUNTRY : Files Pre-Arranged Plan ----------------------------------------- Town & Country Corp., the international jewelry manufacturer, today announced that the company has voluntarily filed a pre-arranged plan to reorganize under Chapter 11 of the Bankruptcy Code. The filing will take place at the holding company level only and does not involve the company's operating subsidiaries, Town & Country Fine Jewelry Group, Essex and Anju, or their relationships with employees, customers and suppliers. Town & Country Corp., the parent company, said its major bondholders have agreed, in principle, to the terms of a restructuring plan in which almost all of their debt will be converted into equity. Town & Country Corp. expects to complete the proceeding in 90 days because it has the support of the largest bondholders. VOICE POWERED TECHNOLOGY: Status of Case ----------------------------------------- On November 20, 1997 Voice Powered Technology International, Inc. will submit a Status Report to the Bankruptcy Court, answering specific questions of the Bankruptcy Court. The debtor will report that it expects to file a reorganization plan and disclosure statement before the date of the Status Hearing, depending on its ability to finalize its negotiations with its largest secured creditor, Franklin Electronic Publishing, Inc. November 17, 1997 is the Bar Date in the case. MEETINGS, CONFERENCES & SEMINARS -------------------------------- November 19, 1997 NASSAU COUNTY BAR ASSOCIATION and SUFFOLK COUNTY BAR ASSOCIATION, jointly with SUFFOLK ACADEMY OF LAW 1997 Annual Bankruptcy Law Update Suffolk County Bar Center, Hauppauge, New York Contact 1-516-747-4464 November 21-24, 1997 COMMERCIAL LAW LEAGUE OF AMERICA 77th Eastern District Meeting New York Marriott World Trade Center, New York December 3-4, 1997 STRATEGIC RESEARCH INSTITUTE 4th Annual Conference on Distressed Debt Crowne Plaza Hotel, New York, New York Contact 1-800-599-4950 December 4-6, 1997 AMERICAN BANKRUPTCY INSTITUTE Winter leadership Conference La Costa Resort & Spa, Carlsbad, California Contact 1-703-739-1060 December 5-6, 1997 STETSON UNIVERSITY COLLEGE OF LAW 22nd Annual Bankruptcy Seminar DoubleTree Surfside Resort Hotel, Clearwater Beach, Florida Contact 1-813-562-7830 DECEMBER 10-11, 1997 INSTITUTE FOR INVESTMENT RESEARCH Investment Opportunities in Workouts & Turnarounds Downtown Conference Center, New York, New York Contact 1-212-661-3500 December 11-13, 1997 AMERICAN LAW INSTITUTE--AMERICAN BAR ASSOCIATION 9th Annual Advanced Court of Study, The Emerged and Emerging New Uniform Commerical Code Sheraton New York Hotel, New York, New York Contact 1-800-CLE-NEWS, ext. 1630 December 15-16, 1997 PRACTISING LAW INSTITUTE Basics of Bankruptcy and Reorganization PLI Conference Center, New York, New York Contact 1-800-260-4PLI or http://www.pli.edu January 29-February 1, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 37th Southern District Annual Meeting Plaza San Antonio, San Antonio, Texas Contact 1-972-285-0391 February 22-25, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 12th Annual Norton Bankruptcy Litigation Institute I Olympia Park Hotel, Park City, Utah Contact 1-770-535-7722 March 19-20, 1998 TURNAROUND MANAGEMENT ASSOCIATION Spring Leadership Meeting Hotel del Coronado, San Diego, California Contact 1-312-857-7734 March 26-29, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW 10th Annual Norton Bankruptcy Litigation Institute II Flamingo Hilton, Las Vegas, Nevada Contact 1-770-535-7722 May 22-25, 1998 COMMERCIAL LAW LEAGUE OF AMERICA 50th New England District Annual Meeting Ocean Edge Resort & Golf Club, Cape Cod, Massachusetts Contact 1-617-720-1355 June 8-9, 1998 TURNAROUND MANAGEMENT ASSOCIATION Advanced Education Workshop & Legislative Conference Radisson Plaza, Charlotte, North Carolina Contact 1-312-857-7734 July 2-5, 1998 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact 1-770-535-7722 October 16-20, 1998 TURNAROUND MANAGEMENT ASSOCIATION 1998 Annual Conference The Westin Hotel, Chicago, Illinois Contact 1-312-857-7734 The Meetings, Conferences and Seminars column appears in the TCR each Tuesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. -------- Bond pricing, appearing each Friday, is supplied by DLS Capital Partners, Dallas, Texas. S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Princeton, NJ, and Beard Group, Inc., Washington DC. Debra Brennan and Rebecca A. Porter, Editors. Copyright 1997. All rights reserved. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *