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REVCO REPORTS ON DETAILS OF ZELL/CHILMARK ARRANGEMENT

 REVCO REPORTS ON DETAILS OF ZELL/CHILMARK ARRANGEMENT
 TWINSBURG, Ohio, Jan. 31 /PRNewswire/ -- To further clarify the


amendments it is making to its plan of reorganization, Revco D.S., Inc. today noted that under the arrangement with Zell/Chilmark Fund, L.P., Revco will provide an option to receive cash or stock to four classes of creditors as follows. At the time of voting on a Revco plan of reorganization, holders of these four kinds of claims could elect to receive the following recovery:
 Class of unsecured Claim or Dollars per Shares per
 creditor principal amt. $1,000 of $1,000 of claim
 owed claim or or principal
 (in thousands) principal
 General Unsecured $181,131 $474.33 or 63.50
 claims
 (11,501,510 shares
 of new common stock
 to be distributed)
 13.125 Percent $400,000 $385.15 or 51.56
 Senior Subordinated
 Notes due 1994
 (20,623,760 shares)
 13.30 Percent Subordinated
 Notes due 1996 $210,000 $85.83 or 11.49
 (2,412,980 shares)
 13.30 Percent Junior
 Subordinated Notes
 due 2001 $97,500 $24.50 or 3.28
 (319,730 shares)
 Revco said yesterday that Chicago-based Zell/Chilmark Fund, L.P., has agreed to invest up to $250 million in Revco common stock to allow Revco to offer this cash alternative.
 The arrangement provides for Zell/Chilmark to make available $7.47 per share as a cash alternative to holders of Revco's three classes of subordinated notes and holders of general unsecured claims. They would receive the funds in lieu of stock in a reorganized Revco.
 Revco operates 1,150 drug stores in 10 states. Based in Twinsburg, Ohio, the privately held company has annual sales of $1.9 billion and fills more than 43 million prescriptions a year.
 -0- 1/31/92
 /CONTACT: Diana Lueptow (media), 216-425-9811, ext. 6145 or Gregory K. Raven, chief financial officer, (investor), 216-425-9811, ext. 5320, both of Revco D.S., Inc./ CO: Revco D.S., Inc. ST: Ohio IN: SU:


KK -- CL008 -- 5625 01/31/92 12:41 EST
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Publication:PR Newswire
Date:Jan 31, 1992
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