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COURT-APPOINTED EXAMINER JAY ALIX FILES REPORT UNDER SEAL ON PHAR-MOR FRAUD

 YOUNGSTOWN, Ohio, Sept. 1 /PRNewswire/ -- Court-appointed examiner Jay Alix filed under seal the draft report on the results of his investigation of alleged fraud and other irregularities at Phar-Mor, Inc. yesterday with the U.S. Bankruptcy Court of the Northern District of Ohio. U.S. Bankruptcy Judge William T. Bodoh has accepted the sealed report.
 Alix was appointed examiner last October by United States Trustee M. Scott Michel, and was approved by U.S. Bankruptcy Judge Bodoh. Alix has been investigating Phar-Mor under orders issued by Judge Bodoh.
 By court order, the examiner's report is sealed for a period of time of at least several weeks to allow parties who have entered into confidentiality agreements with the examiner the opportunity to review the report to ensure that confidentiality has been maintained and the opportunity to comment on possible violations of confidentiality. The examiner will then amend the report, as directed by the court, for release to the public.
 Phar-Mor was a rapidly expanding $3 billion discount drug store chain based in Youngstown, that filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Aug. 17, 1992, after firing its co-founder and president, Michael Monus, and chief financial officer, Patrick Finn, for alleged fraud and embezzlement that led to a $350 million charge against earnings.
 Before filing for Chapter 11, Phar-Mor was the nation's largest deep-discount drug chain with 300 stores and 23,000 employees.
 Alix is the founder and a principal of Jay Alix & Associates, a nationally recognized firm that specializes in the counseling, reorganization and management of financially troubled companies.
 Jay Alix & Associates has offices in Southfield, Mich. and New York City.
 -0- 9/1/93
 /CONTACT: Debra Kuptz of Jay Alix & Associates, 313-358-4420, or Michael Cargill of Marston Agency, 212-371-2200/


CO: Jay Alix & Associates; Phar-Mor, Inc. ST: Ohio IN: REA SU: BCY

LG-OS -- NY052 -- 8050 09/01/93 15:06 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
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