Petrie Stores reports status of Plan of Liquidation and Dissolution: Second Fiscal Quarter Results.
SECAUCUS, N.J.--(BUSINESS WIRE)--September 12, 1995--Petrie Stores Corporation (NYSE NYSE
See: New York Stock Exchange : PST PST Paroxysmal supraventricular tachycardia, see there ) announced today the status of its shareholder-approved plan of liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts.
A type of proceeding pursuant to federal Bankruptcy and dissolution and its results for the second fiscal quarter ended July 29, 1995.
As previously announced, Petrie Stores, which is in the process of liquidation, is subject to contingent liabilities relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc (i) guarantees by Petrie Stores of certain retail store leases to which Petrie Stores' former subsidiaries are parties and which expire at various times through 2005, (ii) an ongoing tax audit for the 1989 fiscal year relating to the manner in which Petrie Stores computed the basis of shares of Toys "R" Us Toys "R" Us (currently typeset as ToYsЯuS in the logo) is a toy store chain based in the United States, Canada, Australia,The Netherlands, South Africa, Hong Kong and the United Kingdom. , Inc. (NYSE: TOY) common stock transferred pursuant to the exchange of certain exchangeable subordinated debentures and (iii) withdrawal and related liabilities in connection with Petrie Stores' past participation in a multiemployer pension plan.
As of September 6, 1995, Petrie Stores believes that the aggregate contingent liability relating to the lease guarantees, should the lessees thereunder fail to perform on the underlying lease obligations, has been reduced to approximately $81.9 million. Petrie Stores is continuing to seek to negotiate further reductions in its lease guarantees. Petrie Stores does not presently believe that the amounts that may be payable by it in connection with the tax audit or the multiemployer pension plan will have a material adverse effect on Petrie Stores' financial position.
As previously announced, Petrie Stores owns 10,055,576 shares of Toys "R" Us common stock, having made distributions of 26,175,109 shares and 5,235,035 shares on March 24, 1995 and August 15, 1995, respectively. Sometime during Petrie Stores' current fiscal year, but not later than January 24, 1996, Petrie Stores will place in a liquidating trust its then remaining shares of Toys "R" Us common stock and any other assets other assets
Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. it then holds, and Petrie Stores shareholders will become holders of beneficial interests in the liquidating trust. It has not yet been determined whether Petrie Stores will make another liquidating distribution prior to establishing the liquidating trust.
Petrie Stores' financial statements for the fiscal quarter ended July 29, 1995 have been prepared on a liquidation basis of accounting. During the three- and six-month periods ended July 29, 1995, Petrie Stores recognized a net income (loss) of $28,750,000 and ($101,515,000), respectively, as compared to a loss from continuing operations continuing operations
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the three- and six-month periods ended July 30, 1994 of ($1,509,000) and ($3,019,000), respectively. In applying a liquidation basis of accounting, Petrie Stores has given effect to the fluctuation in the market price of Toys "R" Us common stock held by Petrie Stores and the 610,700 shares thereof sold on May 26, 1995, in its results of operations and has recorded a net realized and unrealized gain Unrealized Gain
A profit that results from holding on to an asset rather than cashing it in and using the funds.
Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. (loss) on the Toys "R" Us common stock for the three- and six-month periods ended July 29, 1995, of $51,118,000 and ($163,116,000), respectively.
Additional information is contained in Petrie Stores' Quarterly Report on Form 10-Q Form 10-Q
See 10-Q. for the period ended July 29, 1995, which was filed today with the Securities and Exchange Commission.
CONTACT: Mary Ann Dunnell