WESTINGHOUSE DISCLOSES INTEREST IN PHAR-MOR INC.
WESTINGHOUSE DISCLOSES INTEREST IN PHAR-MOR INC. PITTSBURGH, Aug. 6 /PRNewswire/ -- Westinghouse Electric Corporation
(NYSE: WX) today disclosed details of the interests held by Westinghouse Credit Corporation (WCC) in Phar-Mor Inc., the discount retailer which announced it would take a $350 million charge due to alleged fraud and embezzlement by certain former members of its management.
WCC, the company's principal financial services subsidiary, has investments of $50 million of subordinated debt and approximately $26 million, or approximately 3 percent, of Phar-Mor common stock. Further, it has an $8 million indirect investment in Phar-Mor stock through a limited partnership interest in Corporate Partners L.P. In March 1992 WCC sold common stock of Phar-Mor for approximately $66 million. As part of that sale, WCC made certain representations to the purchasers in reliance upon identical representations from Phar-Mor regarding the financial condition of Phar-Mor. Based upon an assessment of the information currently available, management believes that any loss on these Phar-Mor transactions should not have a material effect on the ongoing operations of the company. While management believes there is a probability of a loss, it cannot determine at this time the extent of that loss. -0- 8/6/92 /CONTACT: Jay A. McCaffrey of Westinghouse Electric, 412-642-3366/ (WX) CO: Westinghouse Electric Corporation; Westinghouse Credit Corporation Phar-Mor Inc. ST: Pennsylvania IN: FIN REA SU:
CD -- PG004 -- 7722 08/06/92 16:20 EDT
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|Date:||Aug 6, 1992|
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