NEWARK, N.J. -- April 13, 1995 -- Skylands
Park, home of the
New York-Penn League champion New Jersey Cardinals, today emerged from
bankruptcy following Judge Novalyn Winfield's confirmation of its
reorganization plan in the US Bankruptcy Court for the District of New Jersey
Robert Nies, lead attorney for
Roseland-based Wolff & Samson's
team, termed the bankruptcy "unique" and added, "An overwhelming majority of
companies that file for bankruptcy protection under Chapter 11 never
"Today's culmination of Skylands Park Management's foray into and out of
bankruptcy -- in less than a year -- is an endorsement of the company's
business and marketing plans and allows the company to keep true to its word
and honor its financial commitments."
Skylands Park Management's financial difficulties were caused by
construction cost overruns on its professional baseball stadium and recreation
complex as a result of 1993-1994's unprecedented winter storms, and the
subsequent withdrawal of $3.5 million in loan commitments from area
"When Skylands Park entered bankruptcy, creditors first sought to liquidate
the company. The plan of reorganization, however, provides for payment in
full of unsecured creditor claims over a three-year period, while leaving the
rights of equity shareholders unaltered" said Rob Hilliard, president of
Skylands Park Management. "A 100 percent payback with equity interests in
tact is truly remarkable and, not surprisingly, was endorsed by all of
Skylands Park's major creditor constituents."
Under the proposed plan, the company's creditors -- who were owed $5.1
million when the Chapter 11 proceedings began last June -- will receive an
initial distribution of $1.6 million. This distribution follows the
$1,875,000 provided to creditors from the sale of their Class B common stock
purchase warrants of the company. The proceeds, as agreed, were applied to
reduce the creditors' claims. Skylands Park Management is traded on NASDAQ
under SKYP" target=_new>http://www.secapl.com/edgarlink?SKYP">SKYPand SKYPW.
The remainder of the creditors' claims, about $2.5 million, will be paid
over time, and will be secured by a first lien and mortgage on the company's
stadium complex and other fixed assets.
Finishing touches on Skylands' stadium, recreational barn and exhibit hall
are expected by May 15, with the first Cardinal ballgame scheduled for June
CONTACT: Robert E. Nies, Esq.
Wolff & Samson, (201) 533-6523
The Marcus Group, Inc.