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PHARMAKINETICS LABORATORIES, INC., ANNOUNCES APPROVAL OF REORGANIZATION PLAN

 BALTIMORE, April 1 /PRNewswire/ -- PharmaKinetics Laboratories, Inc. (OTC Bulletin Board: PKLBQ), today announced the confirmation of its Amended Plan of Reorganization under which it will emerge from Chapter 11 bankruptcy. The plan was approved in the Bankruptcy Court for the District of Maryland today.
 The company filed a voluntary petition seeking to reorganize under Chapter 11 of the Federal Bankruptcy Code in November 1990. By May 1992, $8 million in cash was raised from the sale of assets to satisfy secured and unsecured creditor claims. Agreement for the Amended Plan of Reorganization was reached with the major secured lender, Maryland National Bank, in June 1992, and the committee representing the unsecured creditors in October 1992. The company made the initial filing of its plan in October 1992 and subsequently filed its Amended Plan in December 1992. The Disclosure Statement was filed in January 1993. Execution of the Amended Plan is set to occur 30 days from today.
 The plan provides that the secured claims of Maryland National Bank be satisfied by cash payments of approximately $5.95 million and by a term note of approximately $2.4 million. Other terms provide the company with $500,000 working capital and a $500,000 line of credit from the bank. The claims of unsecured creditors are to be satisfied by an initial cash payment of approximately $836,695 and the issuance of approximately 1.5 million shares of common stock of the company subject to a Stockholders Agreement for the controlled sale of such shares.
 Commenting on the court's approval, V. Brewster Jones, chief executive officer, said: "Hard work by the employees and support of clients, shareholders and creditors has made our reorganization very successful. Acceptance of the plan, at more than 97 percent, shows the confidence everyone has in PharmaKinetics. We will now turn all of our efforts to rebuilding."
 PharmaKinetics Laboratories, Inc., is a leading drug development company providing services to pharmaceutical firms seeking new drug approvals in the United States and Canada.
 -0- 4/1/93
 /CONTACT: Taryn L. Kunkel, vice president and chief financial officer, PharmaKinetics Laboratories, 410-385-4500/
 (PKLBQ)


CO: PharmaKinetics Laboratories, Inc. ST: Maryland IN: MTC SU: RCN BCY

IH-MH -- DC013 -- 2045 04/01/93 12:54 EST
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Publication:PR Newswire
Date:Apr 1, 1993
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