Cherokee settles all outstanding unsecured creditors' claims; 490,000 common shares outstanding to be canceled.VAN NUYS, Calif.--(BUSINESS WIRE)--Nov. 14, 1995--Cherokee Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHKE) Tuesday announced that it had reached agreements in principle to settle all remaining unsecured creditors' claims arising from its 1994 Chapter 11 proceeding. The settlements included Cherokee's agreement to an allowed claim of approximately $1,239,000 on an outstanding $33,000,000 claim filed by a jeans importer. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Cherokee's 1994 plan of reorganization, unsecured creditors Unsecured Creditor An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because they have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. receive 60.5504 shares of Cherokee common stock per $1,000 of allowed claim. Therefore, the unsecured creditor will receive 75,000 shares of common stock upon approval by the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . At the time of confirmation of Cherokee's 1994 reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. Cherokee issued 1 million shares of its common stock to a disbursing agent for the benefit of its unsecured creditors. Cherokee will have resolved all claims of unsecured creditors by the transfer of approximately 510,000 shares from the agent to the creditors. The balance, approximately 490,000 shares, will be returned to Cherokee for cancellation, which will reduce the number of outstanding shares of Cherokee common stock from 6,462,667 shares to approximately 5,973,000 shares. The cancellation of the 490,000 shares will occur as soon as the bankruptcy court approves the settlements. Cherokee believes the settlements will be approved by the bankruptcy court within 30 days. Cherokee, based in Van Nuys, is a marketer and licenser of the Cherokee brand products. The company is pursuing retail direct licensing agreements with major retailers in addition to exclusive as well as non-exclusive wholesale and retail licensing operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad. For more information on Cherokee Inc. via facsimile at no cost, simply call 800/PRO-INFO and dial client code 058. CONTACT: Cherokee Inc. Cary Cooper Cary Cooper CBE is an American psychologist and Professor of Organisational Psychology and Health at Lancaster University Management School. Prior to working at Lancaster University, Cooper was Head of the Manchester School of Management (UMIST) from the early 80s, In 1995 , 818/951-1002, ext. 200 or The Financial Relations Board Daniel Saks, 310/442-0599 (general information) Suzy Lynde, 312/266-7800 (analyst contact) |
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