ECKERD MODIFIES PLAN TO ACQUIRE REVCO
ECKERD MODIFIES PLAN TO ACQUIRE REVCO CLEARWATER, Fla., Nov. 6 /PRNewswire/ -- Jack Eckerd Corporation
announced today proposed improvements to its plan of reorganization to acquire Revco D.S., Inc. The revised plan is in response to objections filed to Eckerd's original plan of reorganization and as a result of conversations with various Revco creditor groups.
The proposal substantially improves the distribution to general unsecured creditors, trade and noteholders, by providing such holders $300 million accreted value ($516.5 million face value) in zero convertible subordinated debentures convertible into 10.7 million shares of a new company formed to hold Eckerd and Revco. This represents a 20 percent increase, or approximately 1.8 million additional shares, compared with Eckerd's previous plan. In addition, holders of option after 5 years. The proposal further provides that Revco's bank lenders will receive $307.5 million principal amount in 9 percent senior secured notes instead of a combination of $207.5 million senior secured notes an $100 million junior subordinated debentures. As stated earlier, Eckerd, which went private in 1986, plans to return to the public market with a public offering of stock of the new holding company. Proceeds of the public offering would be used among other things, to retire debt of Eckerd and Revco, including Revco bank debt and the proposed 11 percent secured sinking fund debentures. In the improved proposal, Eckerd provides additional assurance for the timely completion of the initial public offering by increasing the number of shares underlying the zero convertible subordinated debenture from 10.7 million shares to 11.7 million shares in the event the IPO is not completed on a timely basis. Other provisions of the proposal include minor modifications for the benefit of other classes of creditors. Jack Eckerd Corporation is a major retailer serving consumers in the principal markets of the Sunbelt. Its primary business is the 1,676 Eckerd Drug Store chain which operates in 13 states. Other operations include a 40-unit optical chain in 5 states, 45 Visionworks optical super stores in 5 states, 318 Express Photo Labs in 5 states and Insta-Care Pharmacy Services serving institutional facilities in 6 states. -0- 11/6/91 /CONTACT: Gene Ormond of Jack Eckerd Corporation, 813-398-8329/ CO: Jack Eckerd Corporation; Revco D.S., Inc. ST: Florida, Ohio IN: REA SU: TNM AW-SS-JJ -- FL008 -- 1831 11/06/91 15:21 EST
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|Date:||Nov 6, 1991|
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