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THE KENDALL COMPANY REACHES AGREEMENT IN PRINCIPLE ON FINANCIAL RESTRUCTURING PLAN

 THE KENDALL COMPANY REACHES AGREEMENT IN PRINCIPLE
 ON FINANCIAL RESTRUCTURING PLAN
 MANSFIELD, Mass., May 11 /PRNewswire/ -- The Kendall Company and its parent CDK Holding Corporation announced today that they have reached an agreement in principle with their bank lenders and major subordinated debt and equity holders on the basic terms of a comprehensive financial restructuring plan, which they expect will bring significant benefits to Kendall.
 The plan is designed to reduce substantially Kendall's debt service obligations and create a capital structure that will allow Kendall to maintain normal operations and pursue its growth plans. The restructuring plan will involve a substantial new equity investment and also provides for payment in full to Kendall's trade creditors and employees. No job reductions are expected as a result of this process.
 Richard A. Gilleland, Kendall's chairman and chief executive officer, said, "We expect to complete the financial restructuring within the next several months, and to continue to operate our business in the ordinary course during the interim period. The company intends to make payment in full to all of its trade creditors and to take all steps practicable to ensure that this process will have as little effect as possible on customers, suppliers, and employees. With a significantly strengthened balance sheet, the company will be an even more effective industry player, positioned for future growth and expansion."
 Consummation of the restructuring is subject to a number of conditions, including the receipt of favorable votes from specified percentages of the companies' subordinated debt and equity holders and the satisfaction or waiver of all conditions to effectiveness of amended bank credit arrangements. Kendall and CDK Holding are currently soliciting these votes and currently expect to commence a "prepackaged" Chapter 11 proceeding to put the proposed restructuring plan into effect if the required votes are received.
 The companies said that their banks have already signed a commitment letter to restructure their existing debt in accordance with the proposed plan, and that letters of intent have been received from holders of over three-quarters of the principal amount of each series of subordinated debt and over three-quarters of the equity interests affected, expressing support for the plan.
 The solicitation of votes on the plan is being made only pursuant to and as provided in the disclosure statement distributed to affected subordinated debt and equity holders. This announcement does not constitute an offer to sell or buy any security.
 -0- 5/11/92
 /CONTACT: Thomas C. Franco or Allison Sargent, 212-229-2222, for Kendall/ CO: The Kendall Company; CDK Holding Corporation ST: Massachusetts IN: SU: FNC


GK-OS -- NY043 -- 8613 05/11/92 12:02 EDT
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Publication:PR Newswire
Date:May 11, 1992
Words:435
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