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REGINALD F. LEWIS RECEIVES OVER $1 MILLION IN PERSONAL RESTITUTION AS MCCALL PATTERN PLAINTIFFS DROP THEIR SUITS AGAINST HIM

 REGINALD F. LEWIS RECEIVES OVER $1 MILLION IN PERSONAL RESTITUTION
 AS MCCALL PATTERN PLAINTIFFS DROP THEIR SUITS AGAINST HIM
 NEW YORK, Oct. 28 /PRNewswire/ -- All lawsuits brought against Reginald F. Lewis, the chairman and chief executive officer of TLC Beatrice International Holdings, Inc., by creditors and bondholders of McCall Pattern Company have been terminated with prejudice by the plaintiffs. As part of the settlement, which was approved yesterday in federal bankruptcy court, Mr. Lewis will receive $1 million from McCall's insurers and an undisclosed amount from plaintiffs' funds and other parties.
 "Mr. Lewis has agreed to this settlement because its language and terms and the payment to him represent a total vindication of his position that these allegations were utterly groundless and lacked any factual basis," said W. Kevin Wright, a spokesperson for Mr. Lewis. "This wasteful litigation is illustrative of the misuse of the legal system that is threatening so many of our nation's businesses."
 The dismissal of the two actions - Gritzmacher vs. Lewis and U.S. Trust vs. Lewis -- brings to an end a four-year legal battle. The plaintiffs, who are bondholders and creditors of McCall Pattern Company, filed suit in 1989 seeking damages from Mr. Lewis despite the fact that his investment firm's stock in the sewing pattern concern had been sold to the John Crowther Group in 1987. In 1988, after a subsequent change of control and management, McCall declared bankruptcy. Pacific Mutual, the largest bondholder, which owned $11.5 million of the $22 million issue on which McCall ultimately defaulted, purchased $10 million of its position after Mr. Lewis had sold his interest.
 The announced agreement is part of a global settlement of claims related to McCall in which most actions, including those involving Banker's Trust and Shearson Lehman, have been dismissed with prejudice by the plaintiffs. Plaintiffs in the suits will receive the balance remaining in the indemnification fund, set up by the bankruptcy court, after the payment owed to Mr. Lewis under the terms of the settlement is subtracted.
 An earlier lawsuit against Mr. Lewis arising from a loan made by The Travelers Corp. to McCall after his firm had sold its interest in the company was summarily dismissed in U.S. District Court last year. Travelers later dismissed with prejudice its own appeal of the ruling, accepted the court's decision and agreed to make a donation to a charity of Mr. Lewis' choice. At the same time, Mr. Lewis withdrew his libel suit against Travelers.
 EVENTS RELATED TO THE McCALL PATTERN LAWSUITS
 February 1984: Through his investment firm, TLC Group Inc.,
 Reginald F. Lewis purchases McCall Pattern from
 Norton Simon.
 1984 - 1987: During Mr. Lewis' tenure as chairman of McCall,
 the company's operating profits more than double,
 from $6.5 million to $14 million. The company has
 the two most profitable years in its 113-year
 history under Mr. Lewis' stewardship.
 June 1987: McCall is sold to John Crowther Group, a publicly
 held British textile firm. The sale results from
 a well-publicized auction conducted by First
 Boston. Crowther is represented on the
 transaction by Wachtell Lipton Rosen & Katz,
 Shearson Lehman and Peat Marwick. The acquisition
 is partially financed by Bankers Trust and a
 bridge loan is provided by Shearson.
 June - August
 1987: In an unrelated transaction, Mr. Lewis acquires
 Beatrice International, the international food
 division of Beatrice Food Company for $985
 million.
 1988: Crowther is acquired by Coloroll, another publicly
 held British company, which says it is "all but
 severing its ties" to McCall.
 December 1988: McCall, under a new chief executive, files a
 voluntary bankruptcy petition after failing to
 make a payment to the Travelers on a loan McCall
 arranged after it had been sold by TLC.
 1989: Creditors and bondholders of McCall file three
 actions against Mr. Lewis and others seeking
 damages related to their McCall losses.
 February 1991: A lawsuit brought by Travelers against Mr. Lewis
 relating to its loan to McCall is dismissed on
 summary judgment by the U.S. District Court.
 July 1991: Travelers dismisses with prejudice its own appeal
 of the District Court ruling and accepts the
 decision.
 November 1991: McCall emerges from bankruptcy and is purchased
 for $45 million by Philadelphia-based Dimeling and
 Schreiber. Mr. Lewis denounces the reorganization
 plan, terming the bankruptcy proceedings unfair
 and wasteful.
 October 1992: As part of a global settlement, creditors and
 bondholders of McCall drop their suits against Mr.
 Lewis and others. Under the agreement, Mr. Lewis
 will receive over $1 million.
 -0- 10/28/92
 /CONTACT: W. Kevin Wright, vice president and general counsel, 212-756-8933, or R.S. Meily, vice president-communications, 212-756-8930, both of TLC Group, L.P./ CO: TLC Beatrice International Holdings, Inc.; McCall Pattern
 Company ST: New York IN: SU:


AH-OS -- NY072 -- 6044 10/28/92 13:08 EST
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Publication:PR Newswire
Date:Oct 28, 1992
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