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APPEALS TO BE WITHDRAWN, REVCO TO EXIT BANKRUPTCY LATE MAY

 APPEALS TO BE WITHDRAWN, REVCO TO EXIT BANKRUPTCY LATE MAY
 TWINSBURG, Ohio, April 20 /PRNewswire/ -- Revco D.S., Inc. announced that it is filing today a motion that provides for the withdrawal of all appeals to the orders approving confirmation of the plans of reorganization of Revco and its parent Anac Holding Corporation. These appeals had been filed by former Revco officers Sidney Dworkin and William B. Edwards.
 A modification to the Revco plan to implement this agreement is being filed in the U.S. Bankuptcy Court in Akron, Ohio, today. The modification requires approval by the Bankruptcy Court; no further vote by Revco creditors is required. With the withdrawal of appeals, it is expected that Revco will emerge from bankruptcy at the end of its fiscal year in late May.
 The agreement will permit expeditious consummation of the Revco and Anac plans of reorganization. The litigation against certain former members of Revco management, rights to which had been assigned to Revco trade creditors, will be settled and dismissed in exchange for a payment of $3.5 million to be distributed to the trade creditors. The agreement provides that Dworkin and Edwards will withdraw all appeals to confirmation of the plans of reorganization, and will give up their claims to any right of indemnification by Revco.
 "We are pleased that this agreement has been reached. It removes the last roadblock to Revco's emergence from Chapter 11," said Boake A. Sells, Revco chairman and chief executive officer.
 The $3.5 million will be raised by the sale of an additional 468,541 shares of New Common Stock of Revco at $7.47 a share. Eighty percent of these new shares will be offered to the three classes of subordinated debt holders, as an addition to the rights offering previously confirmed by the court. The other twenty percent of the new shares, plus the shares represented by any rights not exercised by the subordinated debt, will be purchased by Zell/Chilmark Fund L.P.
 The additional shares will bring the total of the rights offering under the Revco plan of reorganization to 1,472,557 shares of new common stock, 1,378,849 of which will be offered first to subordinated debt holders. Zell/Chilmark will purchase all shares in this offering whose rights are not exercised by the subordinated debt holders. After exercise of the rights and the issuance of stock under the Revco Plan, approximately 36 million shares of common stock will be outstanding.
 Revco operates approximately 1,150 drug stores in nine contiguous eastern states. The privately held company, based in Twinsburg, Ohio, has annual sales in excess of $1.9 billion dollars, filling more than 46 million prescriptions a year.
 -0- 4/20/92
 /CONTACT: Diana Lueptow of Revco D.S., Inc., 216-425-9811, ext. 6145/ CO: Revco D.S., Inc. ST: Ohio IN: REA SU: BCY


KK -- CL002 -- 9850 04/20/92 08:20 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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