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AMES UNSECURED CREDITORS COMMENT ON REORGANIZATION PLAN

       AMES UNSECURED CREDITORS COMMENT ON REORGANIZATION PLAN
    NEW YORK, Jan. 13 /PRNewswire/ -- Dewey Ballantine, counsel to the Official Committee of Unsecured Creditors of Ames Department Stores, Inc., Ernst & Young, the committee's accounting and financial advisors, and Smith Barney Harris Upham & Co., the committee's investment bankers, stated that they were conducting a detailed review of the plan of reorganization and disclosure statement and believed that, in its key features, it compiled with the committee's position on the terms of a plan.
    A spokesman stated that the plan contemplated a substantive consolidation of all the Ames entities, as sought by the committee, so that all unsecured creditors of Ames and its subsidiaries will share pro rata.  "However," the spokesman said, "we are in litigation and negotiations with other creditor groups (including Ames' bank lenders) about their contention that they are entitled to greater recoveries than the plan proposes, including the banks' contention that they are fully secured and that all available cash should therefore be paid to them. For an out-of-court settlement of these disputes to be reached, it is obvious that some concessions will have to be made in their favor to support such a settlement.  Nevertheless, the proposed plan accomplishes what the committee wanted and we expect that, subject to what our further review and discussions with the company may produce, the committee will support the company in its effort to reorganize."
    -0-               1/13/92
    /CONTACT:  John M. Friedman Jr. of Dewey Ballantine, 212-259-7020 for the Official Committee of Unsecured Creditors of Ames Department Stores, Inc./
    (ADD) CO:  The Official Committee of Unsecured Creditors of Ames Department
     Stores, Inc. ST:  Connecticut IN:  REA SU: FC-OS -- NY075 -- 9216 01/13/92 16:28 EST
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Publication:PR Newswire
Date:Jan 13, 1992
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