WARREN, Mich., April 11, 1995 -- F & M
Distributors, Inc. href="(Nasdaq:" target=_new>http://www.secapl.com/cgi-bin/edgarlink?FMDDQ">(Nasdaq:
FMDDQ) announced that it has received final approval from the bankruptcy
for the previously announced trade lien in favor of its merchandise
The $30 million trade lien allows F & M suppliers to ship merchandise to the
Company on a secured priority basis ahead of prepetition secured debt. F &
M's suppliers, extending trade credit to the Company on or after Match 27,
1995 on the same terms accorded to each supplier's best customers, will have
the benefit of the trade lien.
The trade lien is the result of a cooperative effort between F & M, its
lenders and the Unsecured Creditors' Committee. The Company has paid $35
million on its prepetition bank debt in conjunction with the granting of the
trade lien. F & M has also renegotiated its $50 million postpetition
financing facility which provides, among other terms, for reducing the amount
of the facility to $20 million over the next four months. To date, F & M has
not needed its financing facility except to support letters of credit.
F & M Distributors currently operates 88 F & M deep discount super
drugstores, offering a wide selection of branded health and beauty aids,
cosmetics and fragrances and household supplies at every day low prices.
F & M currently is operating and managing its business as a debtor in
possession under Chapter 11 of the United States Bankruptcy Code. The Chapter
11 reorganization case was commenced by the Company on December 5, 1994.
/CONTACT: Laura Kendall SVP & Chief Financial Officer of F & M,
810-758-1400, Ext. 251; or Naomi Rosenfeld, Eileen Howard, or (media contact)
Stacy Berns of Morgen-Walke Associates, 212-850-5600/
ORANGE, Calif. -- April 10, 1995 -- The Orange County
Transportation Authority (OCTA) board of directors Monday unanimously adopted
option A of the Orange County Investment Pool (OCIP) bankruptcy comprehensive
The board adopted option A after an independent review of options A and B
was completed by the Newport Beach-based certified public accounting firm of
Squar & Clarke. The firm
specializes in bankruptcy and litigation consulting.
The board previously approved the comprehensive settlement agreement but
without a choice between options at the March 27 board of directors
Option A provides the Authority approximately $710 million in cash, $11.4
million in recovery notes, $101 million in settlement secured claims and $119
million in repayment claims. (The Authority already received $182 million in
emergency withdrawals from the pool.)
"Option A offers a structured settlement, better timing of release of funds,
lowers legal costs and reduces uncertainty," said OCTA Chief Executive Officer
Stan Oftelie. "The terms offer OCTA the ability to keep transportation
projects which are the lifeblood of the agency moving forward."
When the issue was discussed, several directors commented that the
flexibility to change to option B later if the County's "good as gold" promise
on notes doesn't come true.
Option B provided the Authority with $710 million in cash and the
opportunity to litigate or negotiate for the remainder of the OCTA funds.
The settlement agreement outlines ways to recover 100 percent of the funds
the Authority had invested with the County of Orange Treasury when the County
made its bankruptcy declaration. On Dec. 6, 1994, the County's bankruptcy
instantly froze $1.13 billion in OCTA funds that were held in the OCIP. In
all, the bankruptcy froze more than $7 billion in cash assets of about 190
The current estimate of immediate cash to be returned to the Authority from
the investment pool is about 80 percent.
More than 190 other government agencies are reviewing or have reviewed the
settlement agreement in the continued bankruptcy proceedings for the
investment pool. Approximately 52 agencies have approved the settlement, and
most of the rest are considering action this week.
The settlement becomes final if approved by the elected officials of 80
percent of the agencies holding 90 percent of the money. The County Board of
Supervisors and U.S. Bankruptcy Judge John E. Ryan also must approve the
The deadline for the agencies to approve the settlement plan is Monday,
CONTACT: Orange County Transportation Authority, Orange, Calif.
Elaine Beno, 714/560-5571