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CHH DISCLOSURE STATEMENT APPROVED BY COURT; COMPANY EXPECTS TO EMERGE FROM BANKRUPTCY BY THE END OF SEPTEMBER

 CHH DISCLOSURE STATEMENT APPROVED BY COURT;


COMPANY EXPECTS TO EMERGE FROM BANKRUPTCY BY THE END OF SEPTEMBER
 LOS ANGELES, July 29 /PRNewswire/ -- Carter Hawley Hale Stores Inc. (NYSE: CHH) today announced that the Bankruptcy Court has approved the Disclosure Statement for its Reorganization Plan and that it is proceeding with the distribution of the plan for creditor and shareholder approval.
 Philip M. Hawley, chairman and chief executive officer, stated, "CHH now has entered the final stage of its reorganization. Approval of the plan will mean that we will emerge from Chapter 11 by the end of September, 19 months from the date we filed for protection, as a strong and viable competitor in time for the important holiday season. Our ability to achieve this is a direct tribute to the support we have received from all of those who have a vested interest in our future success -- creditors, shareholders, employees, vendors and customers.
 "As described in the Disclosure Statement, CHH will be a much stronger company with a net worth of $350 million, a materially reduced debt level, and favorable long term financing in place.
 "Operationally, we are going forward as a far more cost effective, productive and competitive retailer. Specifically, we have consolidated all of our operations into a single entity so that we have a more focused merchandising and marketing approach to our business. We have built a stronger merchandising organization, supplemented by a new planner/distributor organization. We have obtained a commitment for the necessary financing to begin our store modernization program and improve the look and merchandising appeal of our stores," Hawley said.
 The Reorganization Plan has the support of the Zell/Chilmark Fund, CHH's largest unsecured creditor; The Prudential Insurance Company of America and Bank of America, CHH's largest secured creditors; and the Official Committee of Equity Security Holders. To be confirmed on a consensual basis, holders of at least two-thirds in dollar amount and more than one-half in number of claims in each class of creditors voting must vote to accept the plan. In addition, at least two-thirds of the shareholders voting must vote to accept. Besides the above, the plan is also subject to the satisfaction of various other conditions. CHH expects all of these conditions to be satisfied, that the plan will become effective and that it will emerge from bankruptcy before the end of September.
 At the hearing Judge Russell established the voting record date as July 29, 1992. Ballots must be received on or before 5 p.m. PDT, on Sept. 8, 1992, in order to be counted. However, certain types of security holders must return their ballots on or before 5 p.m. PDT, on Sept. 4, 1992, in order to be counted. The confirmation hearing has been scheduled for Sept. 14, 1992 at 2 p.m. PDT. D.F. King & Co. is serving as the information agent and can be contacted at 800-659-5550.
 Carter Hawley Hale Stores Inc. operates 87 stores under the names of The Broadway, The Broadway Southwest, Emporium and Weinstocks.
 -0- 7/29/92
 /CONTACT: Bill Dombrowski, Vice President Public Affairs of Carter Hawley Hale, 213-239-6522/
 (CHH) CO: Carter Hawley Hale Stores Inc. ST: California IN: SU:


CH-LS -- LA028 -- 4785 07/29/92 16:52 EDT
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Publication:PR Newswire
Date:Jul 29, 1992
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