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BEST PRODUCTS FILES PLAN OF REORGANIZATION

 RICHMOND, Va., Sept. 8 /PRNewswire/ -- Best Products Co., Inc., announced today that it has filed a proposed plan of reorganization under Chapter 11 of the U.S. bankruptcy code. The plan was filed with the U.S. Bankruptcy Court for the Southern District of New York.
 Best filed for protection under Chapter 11 of the bankruptcy code Jan. 4, 1991.
 Chief Executive Officer Stewart M. Kasen said the plan represents the work of many people and reflects the partnership formed between the company, its suppliers and the financial community. "I am especially proud and appreciative of our associates and thep?erb effort they have put forth in the revitalization of Best. Despite adverse economic conditions, we've strengthened the business, become a more competitive retailer and entered a growth cycle. The company begins this new chapter in its history well-positioned to meet the challenges of a very competitive marketplace."
 Under terms of the plan, the company will distribute approximately $70 million in cash and issue a total of 31.7 million shares of new common stock to its creditors. The plan provides for the treatment of the company's secured creditor claims, consisting primarily of real property mortgages. When the plan is approved and becomes effective, the company will have eliminated all long-term debt except $132 million in long-term debt to be held by secured creditors and $100 million of capitalized leases. Best expects to have in place by the effective date a working capital facility and anticipates that it will not have any short-term borrowings at the time of the plan's consummation. Total stockholders' equity will be approximately $323 million. The plan proposes to compromise and settle certain actions against financial institutions that provided the senior debt financing for the 1988 leveraged buyout of the company.
 Best Products, one of the nation's largest catalog showroom retailers, operates 159 showrooms and 15 Best Jewelry locations in 22 states. The company also operates a nationwide mail-order service.
 -0- 9/8/93
 /CONTACT: Ross Richardson of Best Products Co., Inc., 804-261-2157/


CO: Best Products Co., Inc. ST: Virginia IN: REA SU: RCN

MH-DS -- DC002 -- 9657 09/08/93 09:09 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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