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P.A. BERGNER & CO. FILES AMENDED REORGANIZATION PLAN

 MILWAUKEE, June 18 /PRNewswire/ -- P.A. Bergner & Co. Holding Company, which operates the Bergner's, Boston Store and Carson Pirie Scott department stores, today filed an amended reorganization plan for its emergence from Chapter 11 bankruptcy proceedings. The plan was filed with the U.S. Bankruptcy Court for the Eastern District of Wisconsin.
 The filing is a consensual plan representing agreements among the company; Maus Freres, the company's sole stockholder; holders of the bank debt secured claims; and the Unsecured Creditors Committee.
 Stanton J. Bluestone, president and acting chief executive officer of P.A. Bergner, stated: "We're pleased that the key groups, who have been so important to P.A. Bergner's past growth and will be vital to the company's continued growth, have been able to work together to develop a consensual plan. This agreement bodes well for our future as a leading department store retailer. We're confident the plan will be approved and confirmed. We expect to emerge from Chapter 11 sometime before the end of this year."
 If the plan is approved by the creditors and the Bankruptcy Court and then consummated, the Bank Debt Group would acquire stock ownership of the reorganized P.A. Bergner & Co. in exchange for the claims they hold plus an additional equity investment of $25 million in cash. Maus Freres, the Swiss concern that has owned P.A. Bergner since 1938, would receive an $8 million cash settlement for its equity interest and claims.
 The unsecured trade creditors of P.A. Bergner & Co. and CPS Department Stores, Inc. would have two options for settling their claims. Under the first, an unsecured creditor would receive a cash payment equal to either the lesser of 32.5 percent of its allowed claims or its portion of $34,125,000. Under the second, an unsecured creditor would receive a cash payment equal to either the lesser of 31 percent of its allowed claim or its portion of $32,500,000, plus stock warrants equal to the lesser of a number of new warrants equal to .00465 times the amount of its allowed claim or its portion of 488,827 warrants.
 Unsecured trade creditors of P.A. Bergner & Co. and CPS Department Stores, Inc. would only receive the lesser amounts under each such option if the aggregate of certain types of claims against such companies exceeded $105 million. The company currently estimates such claims will be materially less than $105 million.
 In addition to these claims settlements, the company and The Dial Corp. (NYSE: DL) have reached an agreement in principle regarding treatment of The Dial Corp.'s claims.
 Under terms of the proposed plan, P.A. Bergner would issue shares of New Common Stock to the Bank Debt Group. The Bank Debt Group would receive 100 percent of that stock in exchange for its claims and $25 million in cash.
 P.A. Bergner listed prepetition debt of approximately $900 million when it filed for protection under Chapter 11 on August 23, 1991. Following the proposed reorganization, it would emerge from Chapter 11 with approximately $250 million in debt.
 "Throughout the bankruptcy proceedings, we have continued to stay absolutely focused on the needs of our customers," Bluestone said. "This consensual reorganization plan will allow us to emerge from Chapter 11 as a stronger retailer, fully capable of meeting its financial objectives."
 P.A. Bergner & Co. operates 62 department stores in the four-state area of Minnesota, Illinois, Indiana and Wisconsin, with annual sales in excess of $1.1 billion.
 -0- 6/18/93
 /CONTACT: Edward P. Carroll, Jr. of P.A. Bergner & Co., 414-347-5340/
 (DL)


CO: P.A. Bergner & Co. Holding Company; Maus Freres; The Dial Corp. ST: Wisconsin IN: REA SU: BCY

KL -- CL011 -- 3574 06/18/93 12:39 EDT
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Publication:PR Newswire
Date:Jun 18, 1993
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