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PHARMAKINETICS LABORATORIES, INC., FILES BANKRUPTCY PLAN OF REORGANIZATION

 PHARMAKINETICS LABORATORIES, INC., FILES BANKRUPTCY PLAN
 OF REORGANIZATION
 BALTIMORE, Oct. 23 /PRNewswire/ -- PharmaKinetics Laboratories, Inc. (OTC Bulletin Board: PKLBQ), today announced the filing of its Plan of Reorganization in the Chapter 11 proceeding in the United States Bankruptcy Court for the District of Maryland.
 As previously announced, the company reached an agreement with Maryland National Bank regarding the debt obligations of the company to the bank on June 9, 1992, pursuant to which the bank has agreed to accept an allowed claim of $8.3 million in a plan of reorganization to be filed prior to Dec. 31, 1992. Of the bank's total claim, approximately $5.95 million is to be paid in cash, $4.0 million of which was due and paid on June 9, 1992, and approximately $2.35 million of which will take the form of a term note. Other terms provide for $500,000 working capital and a $500,000 line of credit for the company. In addition, the bank has agreed to vote for and support a plan containing these and related terms.
 The company has not reached agreement with the official committee representing the unsecured creditors regarding the treatment of their claims in the plan. However, the company has proposed in the plan that the allowed claims of unsecured creditors are to be satisfied by cash payments of approximately 37 percent of the total claims outstanding and the issuance of approximately 1.1 million shares of common stock of the company subject to a Trust Agreement for the controlled sale of such shares over 24 months. V. Brewster Jones, president and CEO of the company, commenting on the filing, said: "I believe we have a fair and workable plan which is capable of satisfying all creditors, stockholders and the company. The company will work hard for early confirmation."
 Upon approval of the plan as filed, the company expects that unrestricted cash and equivalents will increase by $500,000; liabilities will decrease by approximately $4,700,000; and stockholders' equity will increase by approximately $1,500,000. While the company cannot represent the certainty of approval of the plan as filed, management believes that approval will be forthcoming.
 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- 10/23/92
 /CONTACT: Taryn L. Kunkel, vice president and chief financial officer, PharmaKinetics, 410-385-4500/
 (PKLBQ) CO: PharmaKinetics Laboratories, Inc. ST: Maryland IN: MTC SU: BCY


MH -- DC021 -- 4252 10/23/92 14:51 EDT
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Publication:PR Newswire
Date:Oct 23, 1992
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