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MORSE SHOE ANNOUNCES UNITED STATES BANKRUPTCY COURT APPROVES ITS DISCLOSURE STATEMENT AND TIMETABLE

         MORSE SHOE ANNOUNCES UNITED STATES BANKRUPTCY COURT
          APPROVES ITS DISCLOSURE STATEMENT AND TIMETABLE
    CANTON, Mass., Nov. 4 /PRNewswire/ -- Morse Shoe, Inc. announced today that the United States Bankruptcy Court in Boston approved its disclosure statement and timetable for soliciting creditor and equity holder approval of Morse's plan of reorganization.  The official unsecured creditors' committee has agreed to the plan of reorganization and has recommended to its constituents that they accept the plan.
    Manuel Rosenberg, chairman and chief executive officer of the company, said, "We are very optimistic about the upcoming vote and the confirmation of this plan.  We greatly appreciate the loyalty and support of our creditors, suppliers, customers and employees, which have enabled us to structure a plan that we believe is in the best interest of all parties.  Confirmation of this plan provides Morse with the financial strength to grow and prosper during the 1990s."
    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 five years.  The plan requires the approval of creditors, equity holders and the bankruptcy court and is subject to completion of a new bank credit facility.  Negotiations for such a facility are currently being finalized.
    According to the timetable approved by the bankruptcy court, the plan solicitation process will extend from Nov. 7 through Dec. 16, 1991. A hearing on confirmation of the plan is scheduled for Dec. 20, 1991 and, pending creditor and equity holder approval of the plan and a successful conclusion of the confirmation process, Morse expects to emerge from Chapter 11 by January of 1992.
    Morse operates approximately 1,000 company-owned retail stores and footwear departments in the United States, comprised of 485 Fayva(R) stores and 504 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-             11/4/91
    /CONTACT:  John J. Garand, senior vice president & chief financial officer of Morse Shoe, 617-828-9300, ext. 2685/ CO:  Morse Shoe, Inc. ST:  Massachusetts IN: SU: SH-OS -- NY073 -- 0864 11/04/91 16:02 EST
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Publication:PR Newswire
Date:Nov 4, 1991
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