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MORSE SHOE ANNOUNCES CONFIRMATION OF ITS PLAN OF REORGANIZATION

 MORSE SHOE ANNOUNCES CONFIRMATION OF ITS PLAN OF REORGANIZATION
 CANTON, Mass., Dec. 23 /PRNewswire/ -- Morse Shoe, Inc., today announced that the United States Bankruptcy Court in Boston confirmed its plan of reorganization on Dec. 20, 1991, to enable the company to emerge from Chapter 11 protection. The reorganization will become effective upon completion of documentation for new bank financing. The bank financing is being provided by a syndicate led by the First National Bank of Boston. The company expects the plan of reorganization will be effective in early or mid-January, 1992.
 Manuel Rosenberg, chairman and chief executive officer of the company, said, "We are delighted that this final phase of the company's recapitalization has been completed. That a reorganization of this magnitude and complexity was accomplished in less than 12 months is a reflection of the loyalty and support of our creditors, suppliers, customers and employees. Especially gratifying to the company is the fact that the plan was supported by the overwhelming majority of the unsecured creditors and shareholders who voted, confirming our belief that the plan is in the best interest of all parties. We believe this plan will provide Morse with the financial strength to grow and prosper during the 1990's."
 The plan provides that Morse's subordinated bondholders will receive approximately 95 percent of the equity of the reorganized company and a like percentage of the new issue of $50,000,000 principal amount convertible notes. The notes will not pay any interest for five years. The holders of senior preferred and junior preferred stock will receive the balance of the convertible notes and, along with the present equity holders, will receive the balance of the equity of the reorganized company. Trade creditors will be paid in full, over a period of up to five years.
 Morse operates approximately 1,000 company-owned retail stores and footwear departments in the United States, comprised of 480 Fayva(R) stores and 500 footwear departments in major discount and promotional department store chains. In addition, Morse, through its Lowell Shoe, Inc. subsidiary, manufactures and markets Nurse-Mates(R), the leading brand of professional footwear for nurses, and the nationally recognized Soft Spots(R) and Revelations(R) brands.
 -0- 12/23/91
 /CONTACT: John J. Garand, senior vice president and chief financial officer of Morse Shoe, 617-828-9300, ext. 2685/ CO: Morse Shoe, Inc. ST: Massachusetts IN: REA SU: RCN


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Publication:PR Newswire
Date:Dec 23, 1991
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