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MAJOR CREDITORS OF P.A. BERGNER AGREE TO PLAN

 MILWAUKEE, April 15 /PRNewswire/ -- P.A. Bergner & Co. today announced that agreements in principle concerning the essential elements of a plan of reorganization for the company have been reached between Maus Freres, the company's equity owner, and the Bank Debt Holders, and between the Official Unsecured Creditors' Committee and the Bank Debt Holders.
 Generally, the plan of reorganization to be filed with the Bankruptcy Court will give each general unsecured creditor of P.A. Bergner & Co. and CPS Department Stores, Inc. a choice of receiving either cash equal to 32.5 percent of its claim or cash equal to 31 percent of its claim plus warrants to purchase common stock worth (using certain assumptions) an additional 2.5 percent of claim.
 Under the agreement between Maus Freres and the Bank Debt Group, the Bank Debt Holders would receive all of the common stock of the reorganized company in exchange for their claims and such "new value investment" as may be required to enable the company to exit bankruptcy.
 Stanton J. Bluestone, president of P.A. Bergner & Co., stated that, "I am delighted that the company's three major bankruptcy constituencies have reached these agreements in principle, which clearly are in the best interest of the company and its customers, vendors and associates, and which will secure the company's future as a major department store company."
 Mark Metz, an attorney with Reinhart, Boerner, Van Deuren, Norris & Rieselbach, S.C., who represents the Bank Debt Holders, stated that, "the Bank Debt Holders look forward to commencing negotiations with the remaining creditors in order to expedite the company's emergence from bankruptcy under a fully consensual plan of reorganization."
 Metz also reiterated the Bank Debt Holders' earlier endorsements of existing management. Metz stated that, "the Bank Debt Holders are not in favor of any changes in top management and plan to discontinue the company's existing search for a new CEO."
 Bluestone and Metz said that they anticipate that a plan of reorganization which incorporates the agreements in principle will be filed with the Bankruptcy Court as soon as practicable.
 -0- 4/15/93
 /CONTACT: Charles J. Hansen, of P.A. Bergner & Co., 414-347-5307, Mark Metz, of Bank Debt Holders, 414-298-1000/


CO: P.A. Bergner & Co. ST: Wisconsin IN: REA SU:

SM -- CL023 -- 0888 04/15/93 14:28 EDT
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Publication:PR Newswire
Date:Apr 15, 1993
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