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PETER J. SCHMITT GRANTED APPROVAL FOR DIP CREDIT FACILITY

 PETER J. SCHMITT GRANTED APPROVAL FOR DIP CREDIT FACILITY
 BUFFALO, N.Y., June 25 /PRNewswire/ -- Peter J. Schmitt Co., Inc. said that the U.S. Bankruptcy Court in Wilmington, Del., on Wednesday granted final approval for PJS's $70 million debtor-in-possession (DIP) revolving credit facility.
 Under the terms of the DIP facility, which will remain in effect through Jan. 3, 1993, PJS will continue its existing borrowing arrangement with its revolving credit banks (led by Marine Midland). That arrangement allows the company to borrow up to $70 million under an asset-driven loan facility. PJS can also receive an advance of up to $10 million from the bank group as long as its total line of credit does not exceed the $70 million cap.
 The court had granted interim approval for the DIP facility on June 5, pending a final hearing to be held after the formation of an unsecured creditors committee. The committee was formed on June 11 and reviewed the DIP facility soon after.
 "We are pleased that the court and our creditors have given final approval for our DIP facility, which will enable us to continue to pay our vendors on a timely basis for all goods and services received after the filing," said D. Clark Ogle, chairman and chief executive officer of PJS. "This was an important step in our ongoing efforts to ensure the viability of PJS and our affiliated stores and to move forward as a stronger competitor in the markets we serve."
 The court also approved several other motions related to PJS's Chapter 11 reorganization case on Wednesday, including an order establishing procedures for resolving certain kinds of vendor claims.
 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- 6/25/92
 /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: REA SU: FNC


PS -- NY034 -- 3715 06/25/92 11:12 EDT
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Publication:PR Newswire
Date:Jun 25, 1992
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