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E-Z SERVE CLOSES DEBT RESTRUCTURING

 HOUSTON, April 22 /PRNewswire/ -- E-Z Serve Corporation (AMEX: EZS) (the company) of Houston today announced it has closed the restructuring of the long-term debt of its wholly-owned subsidiary, E-Z Serve Petroleum Marketing Company (EZPET). As reported on April 12, 1993, the restructuring permitted EZPET to compromise and settle indebtedness owed to its bank of $28,065,000 for $13 million cash and a $1 million limited recourse promissory note. In addition, other debt owed by the company in the aggregate amount of $5,453,000 has also been extinguished. Collectively, as a result of these transactions, the company has reduced its long-term debt by 47 percent, from $51 million to $27 million on a consolidated basis, and expects a further reduction of $6 million by Dec. 31, 1993 through asset sales and scheduled principle repayments.
 The $13 million cash required to close the deal came from the company's three major stockholders, the company's other bank lender and the company's former parent. The three major stockholders have purchased $6 million of the company's series F Preferred Stock, which, following stockholder approval, is convertible into 40 million shares of the company's common stock at $0.15 per share. Further, these same stockholders have loaned the company $1,634,000 on a short-term basis. The company also closed an Amended and Restated Credit Agreement with the bank lender to TOC Retail, Inc., also a wholly-owned subsidiary of the company, which provided EZPET with $5 million of new term borrowing and a $4 million working capital and letter of credit facility, both maturing June 30, 1997. Harken Energy Corporation (Harken), the company's former parent, also made a cash contribution of $366,000 and agreed to extinguish the company's 12 percent Subordinated Debenture, with a balance of $3,831,000, in exchange for 12,830 shares of the company's series C Convertible Preferred Stock.
 Neil H. McLaurin, president and chief executive officer, noted, "We are very pleased to have closed this deal so quickly. It has provided us with a sound financial structure that will enable us to concentrate our efforts on further improving operating results."
 E-Z Serve Corporation operates 523 company-owned convenience stores and distributes motor fuels through 363 retail outlets located predominantly in rural areas in 21 states.
 -0- 4/22/93
 /CONTACT: John Miller, senior vice president of E-Z Serve Corporation, 1-800-368-6253, or 713-684-4300/
 (EZS)


CO: E-Z Serve Corporation ST: Texas IN: REA SU: RCN

LD -- NY146 -- 9814 04/22/93 18:40 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
Words:412
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