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P.A. BERGNER & CO. HOLDING COMPANY FILES REORGANIZATION PLAN

 MILWAUKEE, Feb. 12 /PRNewswire/ -- P.A. Bergner & Co. Holding Company, which operates the Bergner's, Boston Store and Carson Pirie Scott department stores today filed a reorganization plan for its emergence from Chapter 11 bankruptcy proceedings. The plan was filed with the U.S. Bankruptcy Court for the Eastern District of Wisconsin.
 The timing meets a goal the company set to file a reorganization plan by Feb. 15, 1993. The foundation of this proposed reorganization is the company's five-year business plan.
 Stanton J. Bluestone, president and acting chief executive officer of P.A. Bergner, stated: "This is a well-considered plan that looks to the future of the company. P.A. Bergner has solid franchises in the Midwest, and this reorganization plan will allow us to build on those franchises."
 Under terms of the proposed plan, P.A. Bergner would issue 10 million shares of New Common Stock. Maus Freres, the Swiss company that has owned P.A. Bergner since 1938, and co-investor would receive 3.2 million shares of the stock in exchange for a combined investment of $50 million in cash. The investment is subject to Maus Freres finding an acceptable U.S.-based co-investor. P.A. Bergner would distribute an additional 800,000 shares of the common stock to Maus Freres for its unsecured claims and common equity interests.
 The stock distribution would bring Maus Freres' total equity in the new P.A. Bergner to 40 percent. The plan also provides Maus Freres the right to elect a majority of the board of directors. All other stockholder action requires a vote of two-thirds of the outstanding shares. Maus Freres' continued involvement demonstrates its support and confidence in P.A. Bergner's future.
 The secured creditors group would be issued six million shares of the stock and cash and other assets totalling $14 million in exchange for their secured and unsecured claims totalling $287 million.
 The proposed restructuring also includes a cash payment of $25 million to unsecured creditors (which includes trade vendors) who hold with approximately $129 million in claims. This represents a cash recovery of 19.3 percent.
 For purposes of the reorganization, the stock equity has been valued at $190 million. This represents a midpoint in a range of values provided by First Boston Corp., the company's investment banker.
 The proposed reorganization plan is subject to creditors' approval, confirmation by the bankruptcy court, the securing of a post- confirmation seasonal, working capital facility and the equity investment to be made by Maus Freres and its co-investor. The company's goal is to obtain creditors' approval and confirmation of the plan by mid-1993.
 P.A. Bergner listed prepetition debt of approximately $900 million when it filed for protection under Chapter 11. Under the proposed restructuring it would emerge from Chapter 11 with approximately $216 million of debt.
 "P.A. Bergner has outperformed its operating profit plan in 16 of the 17 months it has been under Chapter 11 protection. Now this plan leaves us with a manageable amount of debt," Bluestone said. "In the last one-and-a-half years, we have focused on our core business and taken a series of hard steps. These include closing unprofitable stores, eliminating non-retail operations, renegotiating a significant number of leases to reduce overall real estate costs and beginning an extensive capital program to revitalize our stores. With the continued support of our associates, our trade vendors and our customers, we are positioned to remain a major competitive force in retailing."
 P.A. Bergner & Co. operates 62 department stores in the four-state markets of Minnesota, Illinois, Indiana and Wisconsin with annual sales in excess of $1.1 billion.
 -0- 2/12/93
 /CONTACT: Edward P. Carroll, Jr. of P.A. Bergner, 414-347-5340/


CO: P.A. Bergner & Co. Holding Company ST: Wisconsin IN: REA SU:

KH -- MN012 -- 6315 02/12/93 17:17 EST
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Date:Feb 12, 1993
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