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MEI ANNOUNCES LOSS OF ONEX CORPORATION SUPPORT

 MINNEAPOLIS, Sept. 30 /PRNewswire/ -- MEI Diversified Inc. (MEI), which is currently operating under protection of Chapter 11 of the Bankruptcy Code, announced today that Onex Corporation, Toronto, has notified MEI that it has withdrawn its financial support of a previously announced joint venture with Magicuts, Inc., also of Toronto. MEI had announced on Aug. 18, 1993 that Magicuts, Inc./Onex Corporation, through its proposed jointly owned subsidiary, Magicuts U.S.A., Inc., was approved by the U.S. Bankruptcy Court at a hearing held on Aug. 17, 1993, to buy substantially all of the assets of MEI's beauty salon subsidiaries.
 Donald E. Benson, president of MEI, indicated that Onex Corporation informed MEI that several recent business reversals represent a material adverse change under the purchase agreement. Benson further indicated that the company is continuing discussions with Magicuts, Inc., relative to a transaction with Magicuts and an alternative joint venture partner and that MEI is also continuing to evaluate other alternatives.
 -0- 09/30/93
 /CONTACT: Donald E. Benson, president, of MEI Diversified Inc., 612-339-8853/


CO: MEI Diversified Inc., Onex Corporation ST: Minnesota IN: REA SU:

CP-AL -- MN009 -- 7413 09/30/93 15:20 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
Words:194
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