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CREDITOR PLAN CLOSEST TO CONFIRMATION IN REVCO BANKRUPTCY: COMPETITOR PLANS FAIL TO GAIN REQUIRED ACCEPTANCE

 CREDITOR PLAN CLOSEST TO CONFIRMATION IN REVCO BANKRUPTCY:
 COMPETITOR PLANS FAIL TO GAIN REQUIRED ACCEPTANCE
 TWINSBURG, Ohio, Jan. 5 /PRNewswire/ -- Final but uncertified results of balloting on three proposed plans of reorganization for Revco D.S. Inc., show the plan proposed by creditors has the strongest support and is closest to being confirmed.
 Confirmation hearings are scheduled to begin Wednesday, Jan. 8, 1992, in U.S. Bankruptcy Court in Akron, Ohio, where the court will take the next stops toward confirming a plan that will bring Revco out of bankruptcy.
 The Creditor Plan, which is supported by Revco, was accepted by four of the seven key groups voting: the banks, trade suppliers and two levels of subordinated debt. It did not receive the support of one class of subordinated debt holders, and, as anticipated, two classes of pre-LBO bondholders who are co-proponents of the competing plans.
 Boake A. Sells, Revco chairman and chief executive officer, said, "It is important our employees, customers and communities understand that this process has become very complicated. The Creditor Plan has now been shown to have the strongest support by creditors. We continue to believe it is the best plan for Revco and its constituents. As we go into court this week, it appears this plan is closest to confirmation, and we hope Judge White will be able to do so. All our stakeholders have endured a process that has gone on long enough."
 Neither the Rite Aid nor the Eckerd plan received support sufficient to win confirmation. The Rite Aid Plan was not accepted by the banks, the trade suppliers, or any of the subordinated noteholder classes. It had the support of only two groups of pre-LBO bondholders. The plan proposed by the Jack Eckerd Corporation and the Unofficial Committee of Unsecured 12.125 percent Noteholders fared even worse; it was accepted only by the 12.125 percent Noteholders, its co-proponent.
 To be confirmed, a plan must gain the approval of: (1) creditors representing two-thirds of the dollar amount of debt held by those voting in that class, and (2) the majority of creditors voting in each class. (As to the number of people voting, creditors supported the Creditor Plan two and a half times more than they did the Rite Aid plan, and two times more than they did the Eckerd plan.)
 If the bankruptcy judge determines that a significant group of creditor classes is satisfied, he may force acceptance of a plan upon remaining creditors.
 Revco sought voluntary protection under the Chapter 11 provisions of the Federal Bankruptcy Code on July 28, 1988, due to $1.5 billion in debt incurred as the result of an unsuccessful leveraged buyout (LBO) by previous management and other investors.
 Revco operates 1,150 drug stores in 10 contiguous eastern states. The privately held company, based in Twinsburg, Ohio, has annual sales in excess of $1.9 billion, filling more than 43 million prescriptions a year.
 -0- 01/05/92
 /CONTACT: Diana Lueptow of Revco, 216-425-9811, ext. 6145, direct, 216-487-1060, night or weekends, 216-945-7406/ CO: Revco D.S. Inc. ST: Ohio IN: REa SU:


JP -- NYSU004 -- 6689 01/05/92 13:44 EST
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Publication:PR Newswire
Date:Jan 5, 1992
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