Printer Friendly

AMES EMERGES FROM BANKRUPTCY WITH $210 MILLION LOAN FACILITY

 ROCKY HILL, Conn., Dec. 30 /PRNewswire/ -- Ames Department Stores, Inc. today announced that it has ended its 32-month stay in bankruptcy by consummating its Plan of Reorganization (POR). At consummation, the company said that it had obtained two-year, $210 million post-Chapter 11 credit and letter of credit financing.
 Peter Thorner, chief operating officer and chief financial officer, said, "The consummation of our POR and the attainment of $210 million in post-emergence financing will permit us to concentrate our efforts on near-term chainwide profitability and more focused marketing to improve the competitiveness of our stores. As the company's 32-month bankruptcy case draws to a close, I want to recognize the dedication of our 25,000 employees and the commitment of our vendor community, both of which played such key roles in Ames' ability to emerge from Chapter 11."
 The new reorganized Ames board of directors, named as provided for in the POR, consists of the following individuals: Francis X. Basile, formerly chairman and chief executive officer of The CIT Group/Factoring; Paul M. Buxbaum, executive vice president, Buxbaum, Ginsberg & Associates; Alan Cohen, chairman of Alco Capital Group, Inc.; Howard E. Hassler, chairman of Hudson River Trust and formerly chairman and president-chief operating officer of Allied Stores Corp.; Sidney S. Pearlman, formerly senior vice president/director of Stores of Younkers, Inc.; H. Richard Roberts, senior advisor, Specialty Retail/Consumer Products Group, Prudential-Bache Capital Funding; and Peter Thorner, Ames' chief operating officer and chief financial officer.
 The POR, which was confirmed Dec. 18 by the U.S. Bankruptcy Court for the Southern District of New York, provides for the payment of $325 million in cash over approximately four years; the issuance of $35 million secured notes; distribution of litigation trust units and anticipated proceeds from litigation against Wertheim Schroder & Co.; and the distribution of all of the new priority and common stock of reorganized Ames to settle approximately $1.6 billion of total estimated claims against the company as of the April 25, 1990, bankruptcy filing date.
 Upon consummation, cash and equity distributions will be made to trustees or in escrow, for various creditor classes. The trustees for the unsecured creditor groups are as follows: Arnold Zahn, Zahn Associates, Inc., 2050 Center Ave., Fort Lee, NJ 07024, trustee for general unsecured creditors of the parent; and Barry Monheit, Kahn Consulting, Inc., 152 West 57th St., New York, NY 10019, trustee for the unsecured creditors of subsidiaries. Bondholders will receive letters of transmittal through the current indenture trustees of the bonds, instructing them how to surrender their securities in exchange for their POR distributions.
 The reorganized Ames common stock (symbol: AMES) will be traded on the National Association of Securities Dealers Automated Quotation (NASDAQ) system. Chemical Bank will be the company's stock transfer agent.
 Ames operates 309 discount department stores in 14 Northeastern states.
 -0- 12/30/92
 /CONTACT: Marge Wyrwas of Ames, 203-257-2659; or Andrea Priest of Ogilvy Adams & Rinehart, 212-880-5272, for Ames/


CO: Ames Department Stores, Inc. ST: Connecticut IN: REA SU:

GK-OS -- NY034 -- 0667 12/30/92 15:16 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 30, 1992
Words:509
Previous Article:MARKING ANOTHER UNPRECEDENTED FIRST, NOVEMBER 1992 NIELSEN CASSANDRA RANKING SHOWS KING WORLD WITH FOUR OF THE TOP FIVE STRIPS IN SYNDICATION
Next Article:POUGHKEEPSIE SAVINGS BANK COMPLETES SALE OF MORTGAGE BANKING SUBSIDIARY
Topics:


Related Articles
AMES REPORTS THIRD-QUARTER RESULTS
AMES FILES PLAN OF REORGANIZATION
AMES REPORTS DECEMBER RESULTS
AMES REPORTS FIRST QUARTER RESULTS
AMES RECEIVES BANKRUPTCY COURT APPROVAL FOR EXTENSION OF $200 MILLION DIP FINANCING
AMES FILES AMENDED PLAN OF REORGANIZATION
AMES TO CLOSE 60 STORES AS PART OF PLAN OF REORGANIZATION
AMES REPORTS SECOND-QUARTER RESULTS
AMES REPORTS NOVEMBER-DECEMBER SALES AND 48-WEEK RESULTS
Ames Announces Improved Financing Terms; Implements Growth Strategies

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters