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COURT CONFIRMS PETER J. SCHMITT PLAN OF REORGANIZATION; PLAN WILL BECOME EFFECTIVE BY THE END OF MAY

 BUFFALO, N.Y., APRIL 22 /PRNewswire/ -- Peter J. Schmitt Co. Inc., today announced that the company's creditors have voted to approve Schmitt's plan of reorganization and that the U.S. Bankruptcy Court in Wilmington, Delaware, has confirmed the plan. The plan of reorganization is expected to become effective by the end of May 1993.
 Under the plan, certain of Schmitt's administrative expense priority creditors (i.e., employees and vendors holding post-petition claims) will receive payments in the full amount of their allowed claims. Schmitt's secured creditors (the revolver banks and the senior term lenders) will receive less than the full amount of their claims (and less than the amount to which they are otherwise entitled under the bankruptcy code). Unsecured creditors and reclamation vendors will share in the remaining assets of the estate after payment to the administrative priority claimants and secured lenders, with the reclamation claimants receiving the bulk of those assets. "We are very pleased and gratified that our creditors and the bankruptcy court have seen fit to approve Schmitt's plan of reorganization, which I firmly believe maximizes the value of the company," said D. Clark Ogle, chairman and chief executive officer of Peter J. Schmitt.
 "We also are very appreciative of the professionalism and cooperation of all the participants in this case, which made it possible to move so quickly to achieve such a significant return for our creditors. I am particularly grateful for the dedication and commitment of our employees, partners, and team of legal and financial advisors."
 Peter J. Schmitt Co., a wholesaler and supermarket operator founded in 1927 in Buffalo, filed for Chapter 11 reorganization protection on May 29, 1992. The company sold substantially all of its operating assets in January 1993.
 On the effective date, Schmitt's unsecured creditors will assume full equity ownership of the reorganized company, which will continue to operate with several full-time employees and sufficient capital to carry out its business functions.
 -0- 4/22/93
 /CONTACT: Fredric J. Spar, or Michael Freitag both of Kekst and Company, 212-593-2655, for Peter J. Schmitt Co. Inc./


CO: Peter J. Schmitt Co. Inc. ST: New York IN: SU: BCY

LD -- NY138 -- 9753 04/22/93 16:59 EDT
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Date:Apr 22, 1993
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