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VALUE MERCHANTS OBTAINS CREDIT EXTENSION TO JULY 30 AS PROGRESS CONTINUES REGARDING $60-65 MILLION TWO-YEAR LINE OF CREDIT

 MILWAUKEE, Wis., July 6 /PRNewswire/ -- "Value Merchants, Inc. (NYSE: VMI) has received a further extension of its working capital line from its lenders until July 30, 1993, while the company continues to pursue a proposed two-year $60-$65 million credit facility to refinance existing debt and provide for on-going working capital needs," Steven J. Appel, president and chief executive officer, announced today.
 "Although there are no assurances that all the conditions of this proposal can be met," stated Appel, "the new extension provided by our banks, I believe, is indicative of the progress we have made to date to meet these requirements," he said. Terms of the proposal include negotiation of a definitive credit agreement and other material conditions, including the participation of the company's current bank group and others in the facility, substantial modifications of agreements with other lenders and the deferred payment of a substantial portion of trade payables, rents and other obligations until Dec. 31, 1993.
 "Initial support has been extraordinarily gratifying," Appel stated. "During the past two weeks, a significant majority of our creditors have given us their overwhelming support," Appel said. "And, based on our continuing conversations," he added, "we expect still greater support. However, much work remains to be done to complete this credit facility by our deadline date of July 30," he said.
 The operations of Value Merchants, Inc. include about 420 Everything's $1.00 close-out variety stores and 121 Toy Liquidators close-out toy stores. Additionally, the company operates the nation's largest wholesaler of close-out toys.
 -0- 7/6/93
 /CONTACT: Gary I. Kastel, director of communications for Value Merchants, Inc., 414-274-2976/
 (VMI)


CO: Value Merchants, Inc. ST: Wisconsin IN: REA SU: FNC

KL -- CL022 -- 8841 07/06/93 18:36 EDT
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Publication:PR Newswire
Date:Jul 6, 1993
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