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CARDINAL DISCLOSURE STATEMENT APPROVED BY COURT

 CARDINAL DISCLOSURE STATEMENT APPROVED BY COURT
 COLUMBUS, Ohio, June 23 /PRNewswire/ -- United States Bankruptcy


Judge Barbara Sellers Monday cleared the way for creditors of Cardinal Industries, Inc. and its substantively consolidated subsidiaries to begin voting on the company's trustee-sponsored plan of reorganization.
 Judge Sellers ruled that the company's disclosure statement -- first submitted by Operating Trustee Jay Alix in mid-April -- contained sufficient information concerning Cardinal's proposed plan of reorganization to permit creditors to make an informed judgment whether to accept or reject the plan. Cardinal will distribute copies of the disclosure statement, plan and creditor ballots for voting on the plan by July 6.
 If the plan is accepted by a sufficient number of Cardinal creditors and is approved by the Bankruptcy Court, Cardinal could emerge from its Chapter 11 bankruptcy reorganization by late summer.
 The financial projections in the disclosure statement assume, among other things, that Cardinal will emerge from Chapter 11 as general or co-general partner of apartment complexes primarily owned by a core group of at least 325 affiliated limited partnerships. Under bankruptcy law provisions that allow a company in reorganization to reject executory contracts, Cardinal plans to reject the contracts relating to properties that have been previously deeded, foreclosed or otherwise disposed of by affiliated partnerships.
 Cardinal also is seeking Bankruptcy Court approval of a proposal to extend by six months the date by which it would assume or reject partnership agreements associated with another 340 properties that have a "reasonable likelihood" of being stabilized during that period. The number of properties that ultimately are stabilized will influence the size of Cardinal's operations after confirmation of the plan.
 Under the plan, if ultimately confirmed by the court, general unsecured creditors will receive one share of stock in the reorganized company for each $50 in allowed claims. As explained in the disclosure statement, other proposed elements of the plan include:
 -- The turnover of relevant collateral to secured creditors in most instances;
 -- Cash payment of 15 cents for every dollar of debt to unsecured creditors with claims of $2,000 or less;
 -- Cash payment in full of certain employee salary and benefit claims, plus interest, in one year; and
 -- The plan does not provide any recovery to creditors with unsecured claims for penalties and parties holding old Cardinal common stock.
 The proposed plan comes a little more than two years after Alix was appointed trustee of Cardinal. At the time of his appointment, Cardinal's eight-month-old reorganization effort was near collapse.
 At one time, Cardinal had been the nation's largest modular housing manufacturer and one of the largest apartment and motel developers and syndicators of limited partnerships, with more than 1,000 properties in 20 states east of the Mississippi River.
 When Cardinal emerges from reorganization, it plans to operate primarily through 16 subsidiaries providing general partner and property management services to apartment complexes primarily owned by affiliated partnerships, plus renter's insurance, leased furniture and mortgage services to affiliated partnerships.
 -0- 6/23/92
 /CONTACT: Don Durocher or Mike Chapp of Durocher & Company, 313-259-7414, for Cardinal Industries, Inc./ CO: Cardinal Industries, Inc. ST: Michigan IN: SU: RCN BCY


JG-SM -- DE015 -- 2918 06/23/92 14:33 EDT
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Publication:PR Newswire
Date:Jun 23, 1992
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