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REVCO TO AMEND REORGANIZATION PLAN TO HAVE SHAREHOLDERS' CASH OPTION

 REVCO TO AMEND REORGANIZATION PLAN
 TO HAVE SHAREHOLDERS' CASH OPTION
 TWINSBURG, Ohio, Jan. 30 /PRNewswire/ -- Revco D.S., Inc. said today Chicago-based Zell/Chilmark Fund, L.P., has agreed to provide up to $250 million as a cash alternative to four classes of creditors scheduled to receive common stock under terms of the company's plan of reorganization.
 Boake A. Sells, Revco chairman and chief executive officer, said, "This choice for creditors should facilitate the confirmation process. We are pleased the Revco plan will provide this option. The offer by Zell/Chilmark indicates their belief in significant value for the equity of reorganized Revco."
 Sells said the company had indications of support from its creditor constituencies regarding this agreement, adding, "We have worked to provide the recoveries we believe our creditors seek."
 Revco, which has operated under protection of Chapter 11 of the Federal Bankruptcy Code since mid-1988, filed a plan of reorganization with the U.S. Bankruptcy Court June 7, 1991 and amended that plan Jan. 22, 1992. An amendment will be filed to accomodate the agreement with Zell/Chilmark.
 The amended plan will state that Zell/Chilmark will make available $7.47 per share as a cash option to holders of Revco's three classes of subordinated notes and holders of general unsecured claims. They would receive the funds in lieu of stock in a reorganized Revco.
 Amendments to its plan that Revco will propose in conjunction with the Zell/Chilmark arrangement include:
 -- For the allowed secured bank claims:
 New 10.50 percent secured notes in the amount of $306,239,112 due June 30, 1999. (Previous terms had provided secured 10.125 percent bank notes.)
 -- For the allowed 11.75 percent sinking fund debenture claims:
 A cash payment of approximately $46,500,000 on the effective date, and receipt of new 11.50 percent secured notes in the amount of $85 million due Dec. 31, 1999. (Previous terms had provided a cash payment of approximately $6,500,000, and notes in the amount of $125 million.)
 -- For the allowed 12.125 percent senior note claims:
 A cash payment of $10 million on the effective date, and receipt of new 11.625 percent unsecured notes due Jan. 31, 2002, in the amount of $41,970,313 million. (Previous terms had provided no cash payment, and notes in the amount of $51,970,313.)
 -- For the allowed general unsecured claims (11,501,510 shares of new common stock to be distributed) and for the allowed senior subordinated (20,623,760 shares), subordinated (2,412,980 shares) and junior subordinated (319,730 shares) note claims, receipt of new common stock in reorganized Revco, or cash in lieu thereof, through the Zell/Chilmark arrangement, of up to $250 million.
 Revco operates 1,150 drug stores in 10 states. Based in Twinsburg, Ohio, the privately held company has annual sales of $1.9 billion and fills more than 43 million prescriptions a year.
 -0- 1/30/92
 /CONTACT: Diana Lueptow of Revco, 216-425-9811, ext. 6145, or 216-487-1060, direct line; Fred Garcia of Clark & Weinstock, 212-953-2550, for Zell/Chilmark/ CO: Revco D.S., Inc. ST: Ohio IN: REA SU:


LC -- CL011 -- 5467 01/30/92 16:48 EST
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Publication:PR Newswire
Date:Jan 30, 1992
Words:533
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