50-OFF CH. 11 PLAN SEES ’98 ENDING IN THE BLACK
SAN ANTONIO, Tex. — 50-Off Stores Inc. has proposed a reorganization plan that forecasts a return to profitability in the fiscal year ending Jan. 30, 1998.
The discount retailer said Friday it filed the plan and a disclosure statement with the U.S. Bankruptcy Court for the western district of Texas.
50-Off, which filed on Oct. 9 for Chapter 11 bankruptcy protection, said it intends to seek a hearing for the approval of the disclosure statement early next month and expects to have a confirmation hearing on the reorganization plan in late April or early May. The firm said it also expects to continue talks with creditors regarding the terms of the proposed reorganization.
The company said its plan calls for:
A substantial reduction in principal and a lengthening of maturity of certain long-term debt.
Issuing unsecured creditors $4 million of convertible secured preferred stock, secured initially by the proceeds of litigation brought by the company.
Issuing common shareholders rights to buy common-convertible preferred stock at $100 apiece
The forgiveness of more than $28 million of pre-petition obligations.
Canceling all existing common stock, warrants and options.
Sales at 50-off reached $175 million for fiscal 1995.