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GENISCO ANNOUNCES RECAPITALIZATION PLAN AGREEMENT THAT WOULD DECREASE DEBT SERVICE, SETTLE PENDING LITIGATION

 GENISCO ANNOUNCES RECAPITALIZATION PLAN AGREEMENT THAT
 WOULD DECREASE DEBT SERVICE, SETTLE PENDING LITIGATION
 ANAHEIM, Calif., Dec. 16 /PRNewswire/ -- Genisco Technology Corp. (AMEX: GES) reported today the terms of a recapitalization plan which will be presented for shareholder vote at a special meeting of the company's shareholders on Dec. 27.
 Three of the company's major creditors have agreed upon a plan of recapitalization which would substantially decrease the company's debt service payments and settle pending landlord litigation. The plan would involve exchange of approximately $4 million of bank debt and $3 million in lease-related claims for newly-issued convertible preferred stock and common stock of the company. Shareholder's equity would increase by approximately $5 million.
 The recapitalization plan requires majority approval by Genisco shareholders of record as of Nov. 18, 1991.
 In addition to the recapitalization plan, the shareholders are also being asked to approve a stock option plan which would grant to Genisco management and the board of directors options to purchase up to approximately 20 percent of the company's shares.
 -0- 12/16/91
 /CONTACT: Phillip C. Friedman or John Gallogly of Genisco, 714-563-4300; or Frank Widder of Dateline Communications, 213-649-9099, for Genisco/
 (GES) CO: Genisco Technology ST: California IN: SU:


AL -- LA009 -- 2560 12/16/91 13:41 EST
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Publication:PR Newswire
Date:Dec 16, 1991
Words:210
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