Printer Friendly

P. A. BERGNER & CO. REACHES AGREEMENT IN PRINCIPLE WITH AMERICAN GENERAL INSURANCE COMPANY

 MILWAUKEE, Aug. 9 /PRNewswire/ -- P. A. Bergner & Co. and the holders of Bergner's bank debt announced today that they had reached an agreement in principle with American General Life Insurance Company and two of its subsidiaries for a restructuring of approximately $48.0 million of debt held by the Houston-based insurance companies.
 American General holds mortgages on seven Carson Pirie Scott stores in Minnesota owned and operated by Bergner affiliates. American General had previously said that it intended to oppose the plan of reorganization filed by Bergner, a number of affiliated debtors, and a group of bank debt holders led by Dickstein Partners. American General's agreement is subject to the approval of its board of directors.
 Under the terms of the agreement, which will be reflected in an amended plan of reorganization to be filed with the U.S. Bankruptcy Court in Milwaukee, American General would receive a cash payment and a note secured by amended mortgages on the same seven stores, as well as additional collateral.
 The agreement with American General represents another major step in the reorganization effort of P. A. Bergner & Co. and its affiliated debtors. Bergner previously reached agreements with all other major constituencies, including its trade creditors, the bank debt holders, The Dial Corp., and Maus Freres, S.A.
 Stanton J. Bluestone, president and CEO of P. A. Bergner & Co., stated, "The American General agreement resolves the largest remaining obstacle to Bergner's ultimate reorganization. We are now poised to emerge successfully from Chapter 11 by the end of October."
 P. A. Bergner & Co. is the 10th largest department-store retailer in the United States with sales in excess of $1.1 billion and 62 stores in the Upper Midwest. Its operations include 37, soon to be 38, Carson Pirie Scott stores in Greater Chicago, Indiana and Minnesota; 14 Bergner's stores in downstate Illinois and Wisconsin; and 11 Boston Stores in Wisconsin.
 -0- 8/9/93
 /CONTACT: Edward P. Carroll Jr., executive vice president of P. A. Bergner & Co., 414-347-5340, or Mark Metz of Reinhart, Boerner, Van Dueren, Norris & Reiselbach, 414-298-8191, for P. A. Bergner & Co./


CO: P. A. Bergner & Co.; American General Insurance Company ST: Wisconsin IN: REA SU: RCN

AR -- CL008 -- 0771 08/09/93 12:53 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 9, 1993
Words:373
Previous Article:LOWE'S ANNOUNCES WEEKLY SALES
Next Article:MURPHY INTRODUCES LEGISLATION AIMED AT PROTECTING MINING JOBS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters