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PETER J. SCHMITT, CO. REORGANIZATION MOTIONS APPROVED

 PETER J. SCHMITT, CO. REORGANIZATION MOTIONS APPROVED
 BUFFALO, N.Y., June 1 /PRNewswire/ -- Peter J. Schmitt, Co., Inc. said that all 16 of the motions entered by the company in connection with its filing for reorganization relief on May 29 were approved today by the U.S. Bankruptcy Court in Wilmington, Del. Included were orders authorizing PJS to use cash collateral of revolving credit banks; to maintain its existing cash management system; to honor pre-petition claims of consumers, credit card processors, money order providers and certain other providers; and to honor employee benefit policies and outstanding employee checks.
 "The approval of the cash collateral facility ensures that we will have the cash we need to pay our vendors on a timely basis for all goods received post-petition," said D. Clark Ogle, PJS chairman and chief executive officer. "This, along with the ability to honor pre-petition claims of consumers, credit card processors and certain providers, and the authorization to maintain our cash management system helps ensure that we can deliver complete continuity of goods and services to the stores and to the consuming public.
 "The continuity of employee benefits will help ensure that PJS can maintain high levels of morale and productivity as it proceeds with the reorganization process. Altogether the motions approved today support our ability to go forward with the normal course of business as we advance toward the development of a solid plan of reorganization," Mr. Ogle said.
 The company also announced that it and a group of revolving credit banks led by Marine Midland have agreed to terms on a $70 million debtor-in-possession (DIP) financing facility. The facility is to include a $10 million non-formula facility and a $14.5 million term facility related to the company's Tri-State Division which was closed down last Thursday. The terms for the DIP will extend through January 3, 1993 and also include a streamlining of financial covenants and other defaults. A hearing on interim approval of the DIP is scheduled for June 5, 1992, in Wilmington.
 Peter J. Schmitt Co., Inc. was founded in 1927 in Buffalo, N.Y. The company's Northeast Division serves franchisees and independent food retailers in Western and Central New York, and Northwestern Pennsylvania.
 -0- 6/1/92
 /CONTACT: Fredric Spar or Michael Freitag of Kekst and Company, 212-593-2655, for Peter J. Schmitt, Co./ CO: Peter J. Schmitt, Co., Inc. ST: New York IN: SU: BCY


PS -- NY089 -- 5916 06/01/92 17:08 EDT
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Date:Jun 1, 1992
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