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NVR L.P. ANNOUNCES IT EXPECTS TO EMERGE FROM CHAPTER 11 ON SEPT. 30

 MCLEAN, Va., Sept. 23 /PRNewswire/ -- NVR L.P. (AMEX: NVR) announced today that it expects to emerge from Chapter 11 on Thursday, Sept. 30, 1993. A registration statement has been declared effective by the Securities and Exchange Commission relating to the offering of $160 million of its 11 percent senior notes due April 15, 2003. Bear, Stearns & Co. Inc. is acting as sole underwriter for the offering of the senior notes. The sale of the senior notes is conditioned upon and will occur concurrently with the emergence of NVR and its affiliates from their Chapter 11 proceedings.
 On the effective date of the plan, NVR also will enter into a new three-year working capital facility with The First National Bank of Boston.
 NVR's plan of reorganization, including the reorganization of NVR L.P. as a corporation, will be implemented over a two-day period, subject to satisfaction of certain conditions. On Sept. 29, NVR's existing subordinated bonds and partnership units will be exchanged for new NVR partnership units and warrants. These exchanges will occur automatically under the plan, without any action on the part of NVR's bondholders or unitholders.
 On Sept. 30, following consummation of the incorporation of NVR, the new partnership units and related warrants will be exchanged for new NVR common stock and new warrants. The holders of the existing bonds will receive approximately 91.1 percent of the 17,057,326 shares of common stock of NVR to be outstanding on the effective date along with warrants to purchase an additional 1,800,000 shares of common stock. The remaining 8.9 percent of the outstanding equity interests in NVR will be allocated among the holders of NVR's preferred interests (1.5 percent), existing unitholders (6.0 percent) and others (1.4 percent).
 Trading in the existing bonds will be discontinued at the close of business on Sept. 28, 1993. Bondholders receiving new NVR partnership units on Sept. 29 will be treated as owners of partnership interests for federal income tax purposes on that date.
 Record holders of the existing bonds on Sept. 28, 1993, will receive instructions from their respective indenture trustee regarding the exchange of the existing bonds. Existing unitholders will be notified by NVR's transfer agent regarding the exchange of the existing partnership units.
 A prospectus with respect to the offering of senior notes may be obtained from Bear, Stearns & Co. Inc., 245 Park Ave., New York, NY 10167, attention: Prospectus Department.
 -0- 9/23/93
 /CONTACT: Doug Poretz of NVR, 703-506-1778 or, home, 703-448-1312/
 (NVR)


CO: NVR L.P. ST: Virginia IN: FIN SU: BCY

MH-IH -- DC006 -- 5082 09/23/93 09:45 EDT
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Publication:PR Newswire
Date:Sep 23, 1993
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