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COURT APPROVES CARTER HAWLEY HALE/PRUDENTIAL AGREEMENT

 COURT APPROVES CARTER HAWLEY HALE/PRUDENTIAL AGREEMENT
 LOS ANGELES, Jan. 28 /PRNewswire/ -- Carter Hawley Hale Stores Inc. (NYSE: CHH) and The Prudential, the company's largest secured creditor, today announced that the United States Bankruptcy Court for the Central District of California has approved modifications to CHH's mortgage debt agreement.
 Under the agreement, which puts in a place a key component of CHH's post-bankruptcy capitalization, The Prudential will defer up to $76 million in interest payments to provide CHH with additional funds to modernize its 88 stores, most of which are located in California.
 The Prudential has agreed to extend the payment terms for its $344 million loan for five years to December 2002, or until the 10th anniversary of CHH's emergence from bankruptcy, whichever is earlier. The Prudential will be paid in full its principal and accrued interest, in accordance with the following provisions:
 Principal payments will start on the fifth anniversary of CHH's emergence from bankruptcy and will continue for the remaining life of the loan. The interest rate on Prudential's loan will remain at 10.6 percent. Up to $52 million in interest, which accrued from the date of the filing, Feb. 11, 1991, through no later than May 31, 1992, will be capitalized in a new 9 percent note.
 In addition, $24 million in interest that accrues on the loan for the first two years after the plan of reorganization takes effect will be deferred. That accrued interest would otherwise have been payable in cash.
 "We're delighted that we were able to negotiate an agreement that gives Carter Hawley Hale the resources it needs to move forward successfully. We're confident that they will have a bright future," said Frank MacDougal, president of Prudential Mortgage Capital Co.
 "This is another major step forward in our efforts to emerge from bankruptcy protection," said Philip M. Hawley, chairman and chief executive officer of Carter Hawley Hale. "Besides providing a substantial piece of our post-bankruptcy capitalization, the interest deferral provides us significant financial flexibility once we emerge and commits The Prudential to support our plan of reorganization, subject to the provisions of the agreement."
 The agreement also provides that all existing litigation between the two parties will be stayed and effects minor amendments to Prudential's existing loan agreements with CHH.
 Carter Hawley Hale Stores Inc. operates 88 stores under the names of The Broadway, The Broadway Southwest, Emporium and Weinstocks.
 -0- 1/28/92
 /CONTACT: Bill Dombrowski of Carter Hawley Hale, 213-239-6522, or Beverly Barna of The Prudential, 201-802-9678/
 (CHH) CO: Carter Hawley Hale ST: California IN: REA SU:


EH-AL -- LA020 -- 4381 01/28/92 16:02 EST
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Publication:PR Newswire
Date:Jan 28, 1992
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