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STANDARD BRANDS PAINT CO. FILES AMENDED PLAN OF REORGANIZATION; FIDELITY FUND PURCHASES SBP BANK DEBT

 TORRANCE, Calif., Dec. 24 /PRNewswire/ -- Standard Brands Paint Co. (NYSE: SBP) filed late yesterday afternoon an amended Substantively Consolidated Joint Plan of Reorganization with the U.S. Bankruptcy Court in Los Angeles that cancels or satisfies approximately $50 million in pre-petition debt through cash, notes, and conversion of debt to equity through the issuance of approximately 16.7 million additional shares of Standard Brands Paint Co. common stock. A hearing on the company's Disclosure Statement that accompanies the plan is scheduled for Wednesday, Jan. 20, 1993, in the Bankruptcy Court. The company also announced that Fidelity Capital & Income Fund, based in Boston and the Kodak Retirement Income Plan Trust Fund purchased both the secured and unsecured debt owed by the company to the Bank of America (formerly Security Pacific National Bank).
 According to Stuart Buchalter, chairman of the company, "Under the amended Substantively Consolidated Joint Plan, existing common shareholders would retain their equity interests, which after distributions of new Standard Brands Paint common stock to various constituencies, would represent approximately 25 percent of total outstanding shares. The Insurance Companies (senior noteholders) would convert their present preferred stock into approximately 10 percent to 24 percent of the total outstanding shares of common stock, while the Fidelity and Kodak Funds would acquire approximately 50.5 percent of the common stock. Trade creditors can elect to share in up to 14.5 percent of the shares of common stock, or instead receive approximately $.35 cash per dollar of approved claim following confirmation of the plan and an additional $.05 per dollar one year later. In addition, stated Buchalter, "The board of directors, under the amended plan, would be reconstituted in alignment with the change in the equity ownership of the company."
 Last week, Standard Brands released its third quarter, ended Oct. 25, 1992, and first nine-month results. Consolidated sales for the fiscal 1992 third quarter decreased 5.8 percent from fiscal 1991's comparable quarter, while fiscal 1992 nine-month consolidated sales decreased 12.6 percent from the prior year's comparable period. During the quarter, comparable retail sales at stores open for more than one year decreased 7.3 percent.
 Richard Loeffler, Standard Brands Paint Co. president and chief operating officer, noted, "Fiscal 1991 sales reflect 147 retail stores for the nine-month period -- 15 more retail locations than the comparable fiscal 1992 period. While corporate overhead costs at the company were down 15.1 percent during the third quarter, net losses for the third quarter of fiscal 1992 were approximately $710,000 more than the prior year's comparable quarter, primarily due to expenses of the Chapter 11 administration. Those expenses, which are primarily for the costs for professionals," added Loeffler, "are running over $500,000 per month -- that's $1.5 million accrued just in the third quarter of fiscal 1992."
 Headquartered in Torrance, Standard Brand Paint Co. is a leading manufacturer and retailer of paint and paint-related products for the do-it-yourself customer.
 -0- 12/24/92
 /CONTACT: Kathy Rosin, director-corporate communications of Standard Brands Paint Co., 310-214-2411/
 (SBP)


CO: Standard Brands Paint Co. ST: California IN: REA SU: RCN BCY

MS-JB -- LA001 -- 9827 12/24/92 11:00 EST
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Date:Dec 24, 1992
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