DEP Corp. plan of reorganization confirmed by bankruptcy court.LOS ANGELES--(BUSINESS WIRE)--Oct. 24, 1996--DEP Corp. (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:DPCAQ/DPCBQ) Thursday announced that the U.S. 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. has confirmed the company's Second Amended Plan of Reorganization, clearing the way for DEP's emergence from Chapter 11 on Nov. 4, 1996. The plan, confirmed yesterday, had obtained the overwhelming support of the voting creditors and stockholders. Under the plan, which should become effective on Nov. 4: -- The lender group, led by Foothill Capital Corp., will provide 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) with $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. The company currently has 6,251,140 common shares outstanding. -- DEP will reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you all of its existing common stock, including the stock issued the lenders, as 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 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 will assume up to $1.150 million post-petition professional fees and expenses incurred by the lenders, less payments made during the Chapter 11 proceeding. -- Unsecured creditors will be paid, with 5 percent interest, over 18 months. "We are pleased that we have been able to resolve this difficult situation in the best interest of all constituents. 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," said Robert Berglass, chairman and president of DEP. "I want to thank the unsecured creditors committee, our suppliers, retail customers and employees for their tremendous support during this challenging period. We look forward to turning our attention to building the business." 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: DEP Corp., Rancho Dominguez D. Lee Johnson, 310/604-0777 or Sitrick and Co. Ann Julsen, 310/788-2850 |
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