GRAND UNION ANNOUNCES EXCHANGE DETAILS
WAYNE, N.J.--June 20, 1995--The Grand Union Company,
which emerged from bankruptcy yesterday, has announced exchange
details for its various pre-reorganization securities and for certain
securities of its parent.
The face amount of Grand Union's 11 1/4% Senior Notes, due 2000, and
its 11 3/8% Senior Notes, due 1999, plus accrued but unpaid interest
and interest on overdue interest as of June 15, 1995, will be
exchanged pursuant to its Plan of Reorganization for 12% Senior Notes,
due Sept. 1, 2004, issued pursuant to an Indenture between Grand Union
and IBJ Schroder Bank & Trust Company, as Trustee, in a principal
amount equal to approximately 113.739618% of the face amount of the 11
1/4% Senior Notes and approximately 112.792720% of the face amount of
the 11 3/8% Senior Notes.
Grand Union's 12 1/4% Senior Subordinated Notes, due 2002, 12 1/4%
Senior Subordinated Notes, Series A, due 2002, and its 13% Senior
Subordinated Notes, due 1998, will be exchanged for common stock of
the company to be issued under the Plan of Reorganization. Based on
the Plan, holders of 12 1/4% Senior Subordinated Notes and Senior
Subordinated Series A Notes shall receive approximately 17.6742 shares
of new common stock per $1,000 face amount, while holders of 13%
Senior Subordinated Notes shall receive approximately 17.2873 shares
of new common stock per $1,000 face amount.
The company said 15% Senior Zero Coupon Notes of Grand Union Capital
Corporation, due July 15, 2004, Series A and B, will be exchanged for
Series 1 Warrants of the company and Series 2 Warrants of the company
to be issued under the Plan. Based on the Plan, holders will receive
approximately .6997 Series 1 Warrants and 1.3994 Series 2 Warrants per
$1,000 face amount. Both series of warrants have a term of five years
from June 15, 1995. Series 1 Warrants have a strike price of $30 per
share of new common stock, while Series 2 Warrants have a strike price
of $42 per share of new common stock.
Holders of 16.5% Senior Subordinated Zero Coupon Notes of Grand Union
Capital Corporation, due Jan. 15, 2007, Series A and B, may exchange
the Notes for Series 1 Warrants and Series 2 Warrants of the company.
Based on the Plan, holders will receive approximately .0805 Series 1
Warrants and .1611 Series 2 warrants per $1,000 face amount.
Grand Union said it expects that its securities will be listed for
trading on a national exchange.
CONTACT: Grand Union Corporation, Wayne | Donald C. Vaillancourt,
Bay Apartment Communities sells Larkspur
Woods Apartments; realizes $2.4 million gain
SAN JOSE, Calif.--June 20, 1995--Bay
Apartment Communities (NYSE:BYA) has sold Larkspur Woods, a 232 apartment
community in Sacramento, Calif. for approximately $17,647,000 to an
As a result, Bay realized a gain of more than $2.4 million after
consideration of Bay's acquisition, reconstruction and carrying
costs expended over the past 15 months.
Bay originally purchased the partially completed community in
March 1994 by buying a defaulted mortgage loan on the property at a
substantial discount from the Resolution Trust Corporation and
simultaneously purchasing title to the community through a
bankruptcy proceeding. Bay's acquisition price totalled slightly
more than $10 million.
The company then invested more than $5 million to complete
construction on 115 uncompleted apartment homes, the leasing and
physical fitness centers, pool, spa, landscaping and a gate system.
Bay completed reconstruction in December 1994. The community
achieved stabilized occupancy in late February 1995.
Bay intends to use the proceeds from the all cash transaction in
the near term to reduce the company's short-term variable rate debt
incurred in significant part with the recent purchase of the
Kimberly Woods Apartments in Pacifica, less than 15 miles from
downtown San Francisco.
Kimberly Woods is a 220 unit community purchased by Bay for
$10.25 million from foreclosure at a substantial discount to the
defaulted note balance. Bay has commenced a $5.7 million asset
repositioning program for Kimberly Woods, including major exterior
and interior reconstruction of the community.
"Bay's strategy is to purchase distressed apartment communities
at attractive prices and then add value by utilizing our strong in-
house development, construction, financing and marketing skills,"
said Gilbert M. Meyer, president and chief executive officer of Bay.
"In the past year, we have completed three major repositioning
projects, including that at Larkspur Woods, and plan to complete at
least six more during the next year."
"When appropriate," he continued, "we will take advantage of the
value we create in assets, such as in Larkspur Woods, and redeploy
capital into other high yielding, value added opportunities like
Kimberly Woods. In the near term, this transaction will slightly
reduce our Funds from Operations per share since we are using
proceeds to pay off relatively low-cost, variable rate debt. We
will not recognize this gain on our FFO/share calculation because
the sale is considered a nonrecurring event."
Bay does not anticipate any corporate level income tax and
expects only a modest reduction in the return of capital as a
percentage of the company's 1995 distribution as a result of the
Larkspur Woods sale.
Bay Apartment Communities is a fully integrated, multi-family
real estate investment trust focused on the acquisition,
construction and reconstruction and management of high-quality
apartments in Northern California. The company owns 22 apartment
communities totalling approximately 5,500 apartment homes in the San
Francisco Bay Area and Northern California.
CONTACT: Bay Apartment Communities, San Jose
Gilbert M. Meyer, 408/983-1500
Americold Prepackaged Reorganization Plan Approved by Court
PORTLAND, Ore.--June 20, 1995--Americold
Corporation announced today that its prepackaged reorganization plan
was confirmed late yesterday by the U.S. Bankruptcy Court for the
District of Oregon.
The plan was filed under Chapter 11 of the U.S. Bankruptcy Code
on May 9, 1995.
The company said that, when implemented, the restructuring plan
will revise the timing of debt service requirements related to $115
million in principal payments due over the next two years on the
company's 11% Senior Subordinated Debentures. The company said the
effective date of the plan will be June 30, 1995.
"The confirmation of our plan clears the way for the
implementation of our financial restructuring on June 30th," said
Ron Dykehouse, Americold's Chairman and Chief Executive Officer.
"As expected, we were able to complete the process quickly while
continuing to run operations on a normal basis, including the
ongoing construction of three new warehouse facilities. In
addition, we were able to post strong first quarter results which
reflect our ability to continue to grow our business, particularly
in the transportation management sector."
The company said that holders of its 11% Senior Subordinated
Debentures due 1997 would exchange their old bonds for new 15%
Senior Subordinated Debentures due 2007, plus the interest due on
the old bonds from the date of the last interest payment up to, but
not including, the effective date of the plan of reorganization.
The last interest payment was November 1, 1994. The company said it
will soon be mailing letters of transmittal to the 11% Senior
Subordinated Debenture holders of record as of March 31, 1995,
pursuant to which such bondholders may surrender their old
Americold also announced preliminary sales results for the first
quarter ended May 31, 1995. Net sales for the quarter totaled
approximately $53.2 million, which represents a 9.1% increase over
last year's first quarter total of approximately $48.8 million.
Contributing to the overall sales increase was a 63.5% increase in
sales from the transportation management services segment.
Americold is the nation's largest cold storage logistics company
with 51 warehouses across the United States providing full service
storage and distribution services. Over 18 billion pounds of
harvested, processed and prepared foods move through the Americold
system every year.
CONTACT: Robinson Lake Sawyer Miller, New York
Robert Mead, 212/484-6701
Krista Grossman, 212/484-7760