GANTOS HOPES TO EXIT CH. 11 WITH NEW PLAN
NEW YORK — Gantos Inc., a 114-unit women’s apparel chain based in Grand Rapids, Mich., that is reorganizing under Chapter 11, filed a revised reorganization plan Thursday and said it will emerge from bankruptcy this spring.
The new plan filed in bankruptcy court provides a 100 percent cash, common stock and debt payout to all creditors. Existing Gantos shareholders will receive 33 percent of the reorganized company’s equity, according to the new plan.
In a statement, Gantos said the plan has the support of the unsecured creditors’ committee as well as its banks, which hold more than 50 percent of total claims.
Gantos, as reported, had intended to exit Chapter 11 earlier in 1995, but disappointing sales results — including a same-store sales drop of 6 percent in October — scuttled that schedule.
Some of Gantos’ creditors were unhappy with the valuation of the 100 percent payout under the original reorganization plan.
— Fairchild News Service