NEW YORK -- Jamesway Corp. said Thursday its creditors have accepted its revised plan of reorganization.
The plan must still receive bankruptcy court approval. A hearing is set for Dec. 12. Jamesway filed for Chapter 11 protection in July 1993.
The regional discounter said 80 percent of its secured claim holders, 100 percent of the senior claim holders, 99 percent of the unsecured claim holders, 81 percent of the subordinated unsecured claim holders and 84 percent of the equity holders, voted for the plan.
As reported, Jamesway's unsecured creditors will receive $55 million in cash upon confirmation plus 100 percent of the 12 million common shares in the reorganized Jamesway.
At the same time, Jamesway announced it would take a $7 million one-time charge to fourth-quarter earnings to pay for an inventory reduction plan.
The plan includes one-time markdowns to sell slower moving merchandise rapidly, accelerated sale of seasonal merchandise and focusing advertising on in-stock merchandise.
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