Printer Friendly

BRENDLE'S JOINT DISCLOSURE STATEMENT APPROVED BY BANKRUPTCY COURT

 ELKIN, N.C., Nov. 11 /PRNewswire/ -- Brendle's Incorporated (NASDAQ: BRDLQ) and its wholly owned subsidiary, Brendle's Stores, Inc., announced today that their Modified Joint Disclosure Statement was approved by the Bankruptcy Court. The Modified Joint Disclosure Statement describes a consensual plan of reorganization which has the support of both the Official Committee of Unsecured Creditors and the company's bank creditors.
 The First Amended Joint Plan of Reorganization will be submitted to the company's creditors and shareholders for their vote with a target date of confirmation of Dec. 14, 1993.
 The company's plan provides for an option of a cash payment of $.52 on the dollar for each allowed unsecured claim and the creditor's proportionate share of 35 percent of the common stock of the reorganized company. In the alternative, an unsecured creditor may select a note in an amount equal to 80 percent of its allowed unsecured claim plus its proportionate share of 35 percent of the common stock of the reorganized company. The secured portion of the bank creditors' prepetition loan will be satisfied in full.
 The company, its Unsecured Creditors Committee and the bank creditors believe that the proposed plan provides the creditors with an equitable settlement of their claims. The company believes the plan provides a sound capital structure which will enable Brendle's to execute its business plan, properly serve its growing customer base, and compete effectively in the markets it serves.
 "The consensual plan we have developed with our creditors is the result of many meetings over several months, and we are pleased to have an agreement which is in all of our best interests. We have confidence in the long-term prospects of Brendle's and we are pleased to have the support of our creditors in our continuing efforts to build our business," Douglas D. Brendle, Chairman of the Board and Chief Executive Officer of the company, stated following the hearing at the Bankruptcy Court earlier today.
 -0- 11/11/93
 /CONTACT: R. Bradford Leggett, Attorney for Brendle's, 919-722-2300, or Douglas D. Brendle, Chairman of the Board and CEO, 919-526-6505, or David Renegar, Vice President-CFO, 919-526-6511, or Bill Grady, Senior Vice President-Marketing & Advertising, 919-526-6513, all of Brendle's/
 (BRDLQ)


CO: Brendle's Incorporated ST: North Carolina IN: REA SU:

SB -- CH001 -- 3069 11/11/93 08:35 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 11, 1993
Words:380
Previous Article:POPEYES AND HABITAT FOR HUMANITY HELP A NEW ORLEANS SINGLE MOTHER'S DREAM COME TRUE
Next Article:FINAST WINS NATIONAL AWARD
Topics:

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