Holly Products, Inc. Announces Court Ruling On Claims Hearings For Country World Casinos, Inc. Chapter 11 Bankruptcy Proceedings

Business Wire, Nov 8, 1996

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Nov. 8, 1996--Holly Products Inc. (NASDAQ: HOPR, HOPRW, HOPRP; BSE: HOP, HOPP) today announced that the U.S. Bankruptcy Court, District of Colorado, has rendered an opinion and order for the company's subsidiary, Country World Casinos, Inc.

The Court's order finds that TommyKnocker Casino Corporation/New Allied Development Corporation is not entitled to default interest at the rate of 18%. However, Country World is ordered to pay 8% per annum on the unpaid balance due TommyKnocker. Country World is not obligated to pay attorney's fees as each party has been directed by the court to pay their own accordingly.

The Court further finds that Country World Casinos, Inc. is not in default of its Agreement with TommyKnocker/New Allied Development Corporation with regard to filing a registration statement for its preferred stock. Until TommyKnocker/NADC files such registration statement and Country World fails to pay for its cost, Country World is not in breach of the agreement.

Lastly, the Court's order upheld TommyKnockers/New Allied's claim that Country World was not entitled to an offset on the environmental clean-up as the work had been completed and Country World had paid all clean-up costs without objection prior to the takeover by Holly Products, Inc.

Both parties are ordered to confer and agree on a specific dollar amount by November 15th else the Court will set forth a hearing, determining the amount and assess costs and attorneys' fees to the prevailing party.

William H. Patrowicz, president of Holly Products, Inc., stated, "We have repeatedly tried to negotiate a settlement with TommyKnocker and New Allied over the past 22 months without success. We are confident that the Judge's opinion and order have set the parameters for us to bring the issues to resolve this coming week as ordered by the Court and such settlement should be fully paid from funds deposited by Country World earlier in these proceedings."

Holly Products Inc., headquartered in Bala Cynwyd, has a wholly owned subsidiary, Navtech Industries of Shiprock, N.M. and a majority owned subsidiary, Country World Casinos Inc., of Denver. Navtech is a manufacturer and tester of electronic components for casino equipment, hotel equipment and signage. Country World Casinos Inc. is a development corporation, whose plan is to construct a casino in Black Hawk, Colo., as well as a hotel complex.

CONTACT: Corporate Contact:

William H. Patrowicz, 610/617-0400

or

Media Contact:

Elliott Jacobson, 312/943-1100