Byline: Jeff Siegel

NEW YORK--It took nearly a month of bitter negotiations, but Jamesway Corp. and its unsecured creditors' committee said Friday they have reached an agreement in principle on a consensual plan of reorganization.
The plan calls for Jamesway to pay unsecured creditors $55 million in cash upon consummation of the plan, scheduled for January 1995. Unsecured creditors will also receive 100 percent of the 12 million common shares in the reorganized Jamesway.
Under the agreement, the creditors' committee will appoint six of the nine members of the board of the reorganized Jamesway.
Jamesway and its unsecured creditors had been bickering over the cash portion of the payout since the discounter unveiled its reorganization plan July 7. Jamesway originally offered $40 million in cash, while unsecured creditors first sought $60 million.
The two sides were unable to reach a compromise before the creditors' committee filed a motion to terminate Jamesway's exclusivity so it could file a competing plan.
The motion led to several weeks of contentious negotiations and a four-day hearing. The two sides were just $3 million apart at the close of the hearing last week, with creditors lowering their demand to $55 million and Jamesway lifting its proposed payout to $52 million.
With the bankruptcy judge promising to decide the issue this week, the two sides settled the matter.
In a written statement Friday, Howard Curd, chairman and chief executive officer of Jamesway, said the increased cash distribution to creditors "will be offset by [Jamesway's] improving sales results as well as increased trade vendor support."
--Fairchild News Service

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