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BRENDLE'S REORGANIZATION PLAN FILED WITH THE COURT

 ELKIN, N.C., Sept. 21 /PRNewswire/ -- Brendle's Stores, Inc. (NASDAQ: BRDLQ) announced that it's plan for reorganization was filed today with the United States Bankruptcy Court. Brendle's expects to have confirmation of this plan prior to Christmas, approximately 1 year after Brendle's filed for protection under Chapter 11 of the Federal Bankruptcy Code on Nov. 22, 1992.
 The plan provides for the full payment of all Allowed Secured Claims, Priority Claims and Administrative Claims. It provides that General Unsecured Creditors may elect to receive either (1) a cash payment of 52 percent or (2) a Reorganization Note equal to 80 percent of their respective Allowed General Unsecured Claims. In addition, all General Unsecured Creditors will receive, pro rata, an aggregate distribution of 15 percent of the issued and outstanding stock in the Reorganized Company. Under the plan, the existing shareholders of Brendle's Incorporated will retain their stock.
 The plan contemplates that the Reorganized Company will have access to a Reorganization Credit Facility in the amount of $22 million, which, when added to the other funds available to the Reorganized Company at Confirmation, will be sufficient to fund the company's obligations under the plan.
 The plan thus provides for substantial distribution of both cash and stock in the Reorganized Company to General Unsecured Creditors, with the cash distribution being made on or before April 30, 1994. Confirmation of the plan will enable Brendle's to emerge from Chapter 11 as a strong company which will serve as an excellent source of business for all of its service, advertising and trade suppliers and which will maintain jobs for the company's 1,400 employees.
 "We are very pleased to have filed our plan which we believe is favorable to creditors and to our company," stated Douglas D. Brendle, chairman of the board and chief executive officer of Brendle's. "Our net comparable store sales have been consistently ahead of plan since May and we are performing better in all of our markets. We expect to meet our sales, profit and cash flow projections for next year. Our goal is to emerge from bankruptcy as a financially sound and operationally secure company."
 -0- 9/21/93 R
 /CONTACT: R. Bradford Leggett, Attorney for Brendle's, 919-722-2300, Douglas D. Brendle, Chairman of the Board and CEO of Brendle's, 919-526-6505, or Bill Grady, Senior Vice-President, Marketing & Advertising of Brendle's, 919-526-6513/
 (BRDLQ)


CO: Brendle's Stores, Inc. ST: North Carolina IN: REA SU: RCN

MM -- CH012 -- 4532 09/22/93 08:56 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
Words:412
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