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PETER J. SCHMITT RECEIVES EXTENSION ON CREDIT FACILITY

 BUFFALO, N.Y., Dec. 15 /PRNewswire/ -- Peter J. Schmitt Co., Inc. said today that the U.S. Bankruptcy Court for the District of Delaware in Wilmington today approved an order extending the company's debtor- in-possession (DIP) revolving credit facility from Jan. 3, 1993 through April 30, 1993.
 Schmitt also said that the court has approved the company's request for a second extension of the period under which it has the exclusive right to file a plan of reorganization. Under the court order, which was approved Dec. 10, Schmitt's exclusivity period will expire on Feb. 26, 1993, with the deadline for soliciting acceptances to occur on April 30, 1993.
 Under the terms of the DIP extension, Schmitt will continue its existing borrowing arrangement with its revolving credit banks (led by Marine Midland). That arrangement will allow the company to borrow up to $55 million through Jan. 3, 1993 and up to $50 million thereafter under an asset-driven loan facility.
 Today's order also enables Schmitt to receive an overadvance of up to $8 million from the bank group through the end of 1992. The order also provides a mechanism to provide funds to pay severance benefits to certain employees affected by the company's recent decision to sell most of its operating assets to three parties.
 "We are pleased that the court has approved this extension of our DIP facility, which will enable us to continue with our plans to sell operating assets and to file a confirmable plan of reorganization in February 1993," said D. Clark Ogle, chairman, president and chief executive officer of Peter J. Schmitt. "In addition to maintaining PJS's liquidity, this agreement will enable us to provide severance payments to many of the employees affected by the asset disposition."
 On Dec. 10, Schmitt announced that it had reached definitive agreements to sell most of its operating assets, including its interest in up to 61 Bell's and Loblaw's supermarkets in New York and Pennsylvania, in three separate transactions with a total value of between $70 million and $75 million. Unless the company receives higher and better bids, all three transactions are expected to close in early January.
 Peter J. Schmitt Co. was founded in 1927 in Buffalo. The company, which filed for Chapter 11 reorganization protection on May 29, 1992, serves franchisees and independent food retailers in Western and Central New York and Northwestern Pennsylvania.
 -0- 12/15/92
 /CONTACT: Fredric J. Spar or Michael Freitag, 212-593-2655, both of Kekst and Company/


CO: Peter J. Schmitt Co., Inc. ST: New York IN: REA SU: BCY

WB -- NY066 -- 7337 12/15/92 15:28 EST
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Date:Dec 15, 1992
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