Clothestime announces agreement on plan of reorganization.ANAHEIM, Calif.--(BUSINESS WIRE)--March 19, 1997--The Clothestime Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :CTMEQ) Wednesday announced that it has reached an agreement with the official committee of 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. in its chapter 11 case on the terms of a plan of reorganization for existing chapter 11. David Sejpal, chairman of the board, president and chief executive officer of Clothestime, said: "Clothestime is gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that we have been able to reach an agreement on the detailed terms of a plan of reorganization. This agreement will enable us to file a plan of reorganization by the end of the month and start the process of emerging from chapter 11." Sejpal added that details on the terms of the plan cannot be made public until it is filed with 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. and that negotiations on the plan terms applicable to certain secured creditors, including Clothestime's largest creditor, must still be concluded. Clothestime currently operates 331 women's apparel stores in 17 states and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , offering primarily in-season, moderately-priced sportswear, dresses and accessories, emphasizing fashion at a discount from department and specialty stores. CONTACT: Clothestime Inc., Anaheim Douglas L. Pereira Senior Vice President, Chief Financial Officer 714/779-5881, Ext. 2410 |
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