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LJ HOOKER CORP. INC. REORGANIZATION PLAN AND DISCLOSURE STATEMENT FILED; CREDITOR PAYOUTS EXPECTED IN MID-1992

 LJ HOOKER CORP. INC. REORGANIZATION PLAN AND DISCLOSURE
 STATEMENT FILED; CREDITOR PAYOUTS EXPECTED IN MID-1992
 NEW YORK, Dec. 19 /PRNewswire/ -- LJ Hooker Corp. Inc. has taken a significant step toward concluding its bankruptcy proceeding with the Dec. 4 filing of a joint plan of reorganization and today's filing of a proposed disclosure statement. The two documents, which were filed with the United States Bankruptcy Court for the Southern District of New York, describe each class of creditor and equity holder and delineate the distributions claimants will receive after the plan is confirmed.
 The plan covers LJ Hooker Corp. Inc. and its 59 subsidiaries and affiliated companies.
 "LJ Hooker was one of the nation's largest and most complex bankruptcy cases, and these documents are testimony to that complexity," said Sanford C. Sigoloff, the company's chief executive officer. "The financial entanglements and cross guarantees of banks around the world have required many skilled professionals to unravel."
 Initial cash distributions to creditors could begin as early as spring 1992. The plan proposes the creation of 30 separate classes of creditors and equity holders. The amount each party will receive will be determined by its class designation.
 "It is not possible at this time to determine the exact dollar payout that will go to each class because there are disputed claims yet to be resolved," said a company spokesperson. "The recoveries could rise up to specified caps once the total pool of claims has been finalized."
 LJ Hooker Corp. Inc. is a subsidiary of Halwood Corp. Ltd. of Australia, formerly Hooker Corp. Ltd. In the mid-1980s, Hooker Corp. Ltd. went on an acquisition spree in the United States. Through heavy borrowing, it acquired companies in retailing (department and specialty stores) and real estate brokerage and greatly expanded its existing activities in home building and commercial real estate development.
 In July 1989, Hooker Corp. Ltd. was placed into provisional liquidation in Australia. That action precipitated LJ Hooker Corp. Inc. and some of its subsidiaries to file in August for Chapter 11 protection under the U.S. Bankruptcy Code. The last LJ Hooker Corp., Inc. subsidiary filed for protection in the fall of 1990.
 "To say that LJ Hooker was in critical shape in mid-1989 would be a vast understatement," said Sigoloff. "Every one of its businesses was operating at a loss. Each had a negative cash flow and required enormous capital investment to become viable."
 Since 1989, LJ Hooker Corp. Inc. has sold or liquidated five retail chains, as well as numerous shopping centers and improved and unimproved residential, commercial and industrial real properties.
 A hearing on the disclosure statement is expected in late January. Acceptance of the plan, which may be amended at any point prior to confirmation, will be determined by a vote of the affected creditors. Generally speaking, for the plan to be approved, favorable votes must be received for each impaired class representing at least two-thirds in amount and more than one-half in number of allowed claims actually voting. Unimpaired classes are not required to vote.
 Confirmation of the plan of reorganization should occur this spring. Once it emerges from bankruptcy protection, LJ Hooker Corp. Inc.'s remaining business activities will be disposal of assets for the benefit of its creditors.
 -0- 12/19/91
 /CONTACT: Michael Sitrick, Rivian Bell or David McAdam of Sitrick and Co., 310-788-2850, for LJ Hooker/ CO: LJ Hooker Corp. Inc. ST: New York IN: SU: BCY


KJ -- LA024 -- 4097 12/19/91 16:47 EST
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Date:Dec 19, 1991
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