OTHER NEWS - April 5, 1996

Home Theater Seeks Bankruptcy Protection: The Anaheim-based company filed for Chapter 11 bankruptcy protection as federal investigators probed allegations that it defrauded investors by inventing millions of dollars of bogus profit. Home Theater Products Inc. is the subject of a criminal investigation by the FBI, said Irwin Zucker, acting president of the company. The Securities and Exchange Commission is conducting a separate probe under a formal order of investigation, he said. Zucker said the firm has a negative net worth of about $5 million, and about $10 million in assets and $15 million in liabilities. No schedules of assets and liabilities were included with the bankruptcy papers, which were filed in Santa Ana. The company said it’s hired Barrington Associates of Los Angeles as its financial advisor to help evaluate its alternatives.