PROSPECT GROUP CONFIRMS PLAN TO DISTRIBUTE SECOND BLOCK OF RECOGNITION EQUIPMENT STOCK
PROSPECT GROUP CONFIRMS PLAN TO DISTRIBUTE
SECOND BLOCK OF RECOGNITION EQUIPMENT STOCK
NEW YORK, Nov. 13 /PRNewswire/ -- The Prospect Group, Inc. (NASDAQ: PROS) today confirmed its intention to distribute a second block of common stock of Recognition Equipment Incorporated (NYSE: REC) to Prospect shareholders upon completion of the registration of the stock.
Recognition announced today that it has filed a registration statement with the Securities and Exchange Commission for the block of stock owned by Prospect. The shares were issued to Prospect in July pursuant to an agreement under which Prospect surrendered and canceled $15.7 million principal amount of 10 percent convertible senior subordinated notes issued by Recognition to Prospect in 1990.
Prospect shareholders approved a plan of complete liquidation and dissolution in June 1990 and the initial distribution of assets under the plan was completed in August 1990. Three subsequent distributions have been made, including 1,431,800 shares of Recognition in July. The company previously stated that it expected to complete the second Recognition distribution by year-end, but registration of the stock could delay distribution past Dec. 31.
Prospect has also stated that, in order to retain sufficient assets to defray corporate obligations and to provide for contingencies, it does not anticipate making additional liquidating distributions other than the second Recognition distribution in the foreseeable future.
Prospect distributed the bulk of its assets to shareholders in August 1990. Its remaining assets include cash, the remaining shares of Recognition, and common shares of Children's Discovery Centers of America, Inc. (NASDAQ: CDCRA), one of the country's largest child care companies.
/CONTACT: Donald R. Dwight of Dwight Partners, 203-661-8480, for The Prospect Group/
(PROS REC) CO: The Prospect Group, Inc.; Recognition Equipment Incorporated ST: New York, Texas IN: SU: JT -- NY041 -- 3891 11/13/91 11:24 EST