NEW YORK, New York--March 21, 1995--The creditors' committee of the
Orange County, California, Investment Pool voted unanimously yesterday to
reject the county's proposed settlement of the pool's bankruptcy. It is not
clear at this point how long this setback will delay settlement of the pool
losses. Moody's has stated in the past
that the settlement would be an
important first step in development of the county's recovery plan, and would
be integral to restoring participants' reserves. The proposal would have
distributed the cash holdings of the pool to participants on a pro rata basis;
the investment losses averaged 23%. Currently, participants have access to up
to 30% of the cash under guidelines established by the creditors committee.
The absence of timely resolution could severely impair the participants'
ability to meet their obligations for the remainder of fiscal 1995, including
repayment of short term borrowing, and makes planning for fiscal 1996 nearly
impossible for some entities.
The settlement of the pool's losses would be an important element in
resolving the county's own bankruptcy. Without knowing its own liquidity and
its liabilities to pool participants, the county faces greater difficulty in
devising the remaining elements of its recovery program.
The creditors' committee rejected the proposal over concerns about the
marketability of recovery notes to be issued to the participants by the
county. The rejection of the proposal appears to be an indication of the pool
participants' concerns about their ability to convert these county obligations
to cash given the county's willingness and ability to honor its obligations.
Moody's continues to state to county officials that strong leadership from the
county to address its operational needs while also honoring its obligations to
debt holders is required to regain creditworthiness and viability.
CONTACT: Moody's Investor
Service, New York,
Assistant Vice President,
Rights of Equity Shareholders to be Maintained After Plan Confirmation
Company Also Extends Exercise Period of Class B Warrants
AUGUSTA, N.J., March 21, 1995 -- Skylands
Park Management, Inc.
(Nasdaq: SKYP" target=_new>http://www.secapl.com/cgi-bin/edgarlink?SKYP">SKYPand
that the United States Bankruptcy Court for
the District of New Jersey has approved, without objection, the company's
disclosure statement relating to its proposed plan of reorganization.
Judge Novalyn L. Winfield has set Thursday, April 13th, as the date for the
Court to hold a confirmation hearing on the reorganization plan.
Under the proposed plan, which has the endorsement of the Official Committee
of Unsecured Creditors, the rights of equity shareholders would be left
unaltered and unimpaired.
Creditors already have received $1,125,000 from sale of the company's Class
B Warrants, and will receive at least $1.6 million more upon plan
confirmation. The balance of debt -- estimated to be $2.5 million -- would be
payable over a period of three years, and would be secured by a first lien and
mortgage on company property and assets. The mortgage would be held by a
management group to be set up by the company's creditors.
The company's 28.5 acre sports and recreation complex -- centerpiece of
which is Skylands Park, a 4,319-seat baseball stadium that is home to the
minor league New Jersey Cardinals -- will be completed no later than May 15th
under a $2,187,500 guaranteed maximum price contract with EPIC, Incorporated
of Piscataway, N.J.
Skylands Park currently operates a 4,000 square foot wholesale and retail
sporting goods outlet; will open its 16,644 square foot recreation center in
May, and dedicate its 6,400 square foot baseball museum on July 4th
In other company news, Skylands Park Management's Board of Directors
authorized extension of the exercise period of the company's outstanding Class
B Common Stock Purchase Warrants through 5:00 p.m., New York time, on June 22,
The Class B Warrants had been scheduled to expire at 5:00 p.m., New York
time, on March 22, 1995. To date, 4.5 million Class B Warrants have been
exercised, and 500,000 Class B Warrants remain outstanding.
/CONTACT: Robert A. Hilliard of Skylands
Park Management, 201-383-7644/