DEP Corp. emerges from Chapter 11 Monday and announces change in trading symbol.LOS ANGELES--(BUSINESS WIRE)--Nov. 4, 1996--DEP Corp. (NASDAQ/SmallCap:DEPC DEPC Diethyl Pyrocarbonate DEPC Down East Partnership for Children DEPC Data Evaluation and Publication Committee ) announced that under its Second Amended Plan of Reorganization, modified and confirmed 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. on Oct. 23, 1996, the company Monday emerged from Chapter 11 bankruptcy. Pursuant to the plan, which became effective Monday, DEP DEP Deposit DEP Deputy DEP Department of Environmental Protection DEP Dependent DEP Departure DEP Depot DEP Deposition DEP deployed (US DoD) DEP Data Execution Prevention (computer security) reclassified its existing non-voting Class A and voting Class B common stock into one class of voting stock Voting stock The shares in a corporation that entitle the shareholder to vote. voting stock Stock for which the holder has the right to vote in the election of directors, in the appointment of auditors, or in other matters brought up at the , so that all outstanding common shares have identical voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. and privileges. DEP Corp.'s common stock will trade on the 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 SmallCap market under the symbol "DEPC." The company has 6,793,628 common shares outstanding, which includes 542,488 shares of common stock to be issued to its lender group Monday under the plan. Stockholders of record and beneficial record holders will not be required to exchange their shares. "No action needs to be taken by our shareholders in connection with reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. ," said Robert Berglass, president and chairman of DEP. "Simply put, both classes of stock have been renamed as common stock, and will trade under the symbol DEPC." Additionally, under the plan: -- DEP Corp. has obtained $62 million in long-term financing Long-term financing Liabilities repayable in more than one year plus equity. at an interest rate of prime plus 2 percent, with a maturity date of July 31, 2002. -- The lender group will receive $150,000 in cash in satisfaction of certain post-petition interest claims and 542,488 shares of DEP common stock plus warrants to purchase an additional 330,050 shares at a price to be determined subsequent to the effective date. -- DEP will assume approximately $1.150 million in post-petition professional fees and expenses incurred by the lenders, less payments made during the Chapter 11 proceeding. -- Monthly payments to the unsecured creditors will commence promptly, with 5 percent interest, continuing over the next 18 months. Berglass said: "We are pleased that the company has been able to successfully emerge from bankruptcy in the shortest possible time. The plan restructures the company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. to be consistent with our anticipated cash flow and treats all of our creditors and stockholders fairly. "I also want to acknowledge the tremendous support the company received from the unsecured creditors committee, our suppliers, retail customers and employees. With the restructuring behind us, we can now fully concentrate our attention to the business at hand with the goal of improving stockholder value." DEP Corp. is a consumer products company that develops, manufactures and markets a wide variety of hair, oral and skin care products under 10 major brand names: Dep, L.A. Looks, Agree, Halsa, Lilt, Topol, Lavoris, Natures Family, Porcelana and Cuticura. The company employs approximately 300 people at its Rancho Dominguez, Calif., headquarters and production facility. The company filed to restructure under Chapter 11 of the Bankruptcy Code on April 1, 1996. CONTACT: D. Lee Johnson, 310/604-0777 or Sitrick and Co. Ann Julsen, 310/788-2850 |
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