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CHEROKEE ANNOUNCES EXTENSION OF BANK AGREEMENT AND CREDITOR'S APPROVAL AND THE FILING OF PRE-PACKAGED PLAN UNDER CHAPTER 11

 SUNLAND, Calif., April 23 /PRNewswire/ -- Cherokee Inc. (NASDAQ: CHKE) and its subsidiary, The Cherokee Group, announced that on April 23, 1993, they had filed a joint "prepackaged" plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to complete the consensual financial restructuring of the companies. Under the plan, the companies' indebtedness and preferred stock obligations will be reduced from approximately $190,000,000 to approximately $90,000,000, and its annual fixed charges (interest and preferred stock dividends) will be reduced from more than $27,000,000 to approximately $12,000,000.
 Robert Margolis, chief executive officer of the companies, said: "We are thrilled that the restructuring plan was approved by our securityholders. If there are no unexpected delays, we should be out of Chapter 11 before our fiscal year ends on May 31."
 Cary Cooper, chief financial officer, stated that: "The bankruptcy court filings will have no adverse impact on Cherokee's customers, suppliers or trade creditors because the bankruptcy court entered first day orders allowing the companies to operate in the normal course without interruption and specifically authorized the companies to continue to pay trade creditors in the ordinary course without any delay in payment."
 Cooper also said that: "The companies entered into a revised credit agreement with their bank lenders prior to the Chapter 11 filing which will continue the companies' financing arrangements on substantially the same terms that existed prior to the filing." Cooper was also pleased to note that the banks agreed to extend the maturities of the bank debt from May 1994 to May 1995 conditioned on the completion of the reorganization plan.
 The bankruptcy filing, which was made in the bankruptcy court for the District of Delaware, was made after the companies received enough acceptances from securityholders to be able to confirm the plan. As of the solicitation deadline of April 21, the companies said that they received plan approvals from holders of 100 percent of the principal amount of Senior Subordinated Reset Notes of The Cherokee Group that voted on the plan (with one abstention), from holders of 100 percent of the Redeemable Preferred Stock of The Cherokee Group that voted on the plan, from holders of 99.9 percent of the Senior Subordinated Debentures due 2001 of Cherokee Inc. that voted on the plan and from holders of 100 percent of the Redeemable Preferred Stock of Cherokee Inc. that voted on the plan.
 Cherokee is a designer, manufacturer and marketer of casual apparel and footwear under the Cherokee brand and other brand names and also licenses its brand names to 24 domestic and international licensees for a variety of apparel, footwear, accessories and other products.
 -0- 4/23/93
 /CONTACT: Cary Cooper, CFO of Cherokee, 818-951-1002, ext. 200/
 (CHKE)


CO: Cherokee Inc.; The Cherokee Group ST: California IN: TEX SU: BCY

LS -- LA002 -- 9968 04/23/93 10:41 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
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