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CARTER HAWLEY HALE PLAN OF REORGANIZATION CONFIRMED; COMPANY TO EMERGE FROM BANKRUPTCY IN EARLY OCTOBER

 CARTER HAWLEY HALE PLAN OF REORGANIZATION CONFIRMED;
 COMPANY TO EMERGE FROM BANKRUPTCY IN EARLY OCTOBER
 LOS ANGELES, Sept. 14 /PRNewswire/ -- Carter Hawley Hale Stores Inc. (NYSE: CHH) (CHH) announced today that its plan of reorganization was confirmed and that it anticipates that it will emerge from bankruptcy in early October.
 "We are gratified to have reached this major milestone and to have the reorganization process behind us," said Philip M. Hawley, chairman and chief executive officer. "We appreciate the support and cooperation we have received from our creditors, shareholders, employees, vendors and customers. We look forward to implementing the business strategies detailed in the plan, including the store modernization program."
 The plan was confirmed on a consensual basis by Judge Barry Russell in U.S. Bankruptcy Court for the Central District in California. Under its terms, each dollar of unsecured creditor claims allowed against the company will receive .046 shares of new common stock in the reorganized Carter Hawley Hale. Zell/Chilmark Fund, which holds about 80 percent of the unsecured claims, will receive an additional 5 million shares of stock for a new $50 million investment in CHH. Zell/Chilmark will hold about 75 percent of the common stock of the reorganized company.
 Current shareholders will receive .081 shares of new common stock and .084 warrants or shares of preferred stock of the reorganized CHH for every share of common stock currently held. The exercise price for the seven-year warrants will be $17 per share. Shares of preferred stock are exchangeable into an equal number of CHH warrants.
 The reorganized company will have approximately 35 million shares of common stock outstanding and shareholder equity of approximately $350 million. About $600 million of debt will be removed from CHH's balance sheet as a result of the reorganization.
 The distribution record date will be the same as the effective date, which the company anticipates to be Oct. 8.
 Carter Hawley Hale Stores Inc. operates 87 stores under the names of The Broadway, The Broadway Southwest, Emporium and Weinstocks.
 -0- 9/14/92
 /CONTACT: Bill Dombrowski, VP-public affairs of Carter Hawley Hale Stores, 213-239-6522/
 (CHH) CO: Carter Hawley Hale Stores Inc. ST: California IN: REA SU: RCN


BP-JL -- LA031 -- 9352 09/14/92 18:03 EDT
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Publication:PR Newswire
Date:Sep 14, 1992
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