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InterNet Bankruptcy Library - News for June 23, 1997







Bankruptcy News For June 23, 1997




        
  1. District Court Affirms Elder-Beerman
            Exclusivity Decision

  2.     
  3. FLAGSTAR AND BONDHOLDER GROUP AGREE
            TO DISMISSAL ON INVOLUNTARY CHAPTER 11 PROCEEDING

  4.     
  5. Today's Man Files Plan of Reorganization
            






District Court Affirms Elder-Beerman
Exclusivity Decision



DAYTON, Ohio, June 23, 1997 - Frederick Mershad, President and
Chief Executive Officer of The
Elder-Beerman Stores Corp.
issued the following statement
after a U.S. District Court Judge said today that he would not
accelerate the date, set for August 18, in which Elder-Beerman
must develop a plan of reorganization. "We are pleased that
Judge Rice of U.S. District Court has supported the bankruptcy
court decision of Judge Clark allowing Elder-Beerman until August
18th the exclusive right to file a plan of reorganization.
Especially encouraging is Judge Rice's recognition of
Elder-Beerman's progress."



In his ruling, Judge Rice stated, ". . . The progress
that Elder-Beerman has made in regard to its financial situation
and business operations since the filing of its Chapter 11
petition in October 1995 has been nothing short of remarkable. In
fact, as of March 1997, Elder-Beerman had reached the first three
milestones necessary for its emergence from Chapter 11 -
accomplishing all of its goals except for the development and
confirmation of a plan of reorganization."



In closing, Mershad went on to say, "While we continue to
work to address creditor issues in our Chapter 11 case,
Elder-Beerman is performing well from an operational standpoint.
Our confidence in the company's future is reflected in the
current expansions and renovations of stores in several
markets."



With annual sales in fiscal 1996 of $569.6 million, The Elder-
Beerman Stores Corp. is a leading department store company
headquartered in Dayton, Ohio. Elder-Beerman operates 50
department stores in Ohio, Indiana, Illinois, Michigan,
Wisconsin, Kentucky and West Virginia, as well as two furniture
superstores in Ohio. The company also operates 68 El-Bee and
Shoebilee! shoe stores in seven states.



SOURCE Elder-Beerman Stores Corp. /CONTACT: Ginny Focke of
Elder-Beerman Stores Corp., 937-296- 7360/






FLAGSTAR AND BONDHOLDER GROUP AGREE TO
DISMISSAL ON INVOLUNTARY CHAPTER 11 PROCEEDING



SPARTANBURG, S.C.--June 23, 1997--href="chap11.flagstar.html">Flagstar Corporation confirmed
that it and certain holders of its 10% Convertible Junior
Subordinated Debentures due 2014 have agreed today to a voluntary
dismissal of the involuntary Chapter 11 proceeding filed against
the company, thus allowing Flagstar to continue without
interruption the solicitation of votes on its financial
restructuring plan.



Flagstar's plan calls for the company to file a voluntary
Chapter 11 case after the completion of its solicitation. The
plan will only involve Flagstar's parent companies and will not
involve the subsidiaries that operate the company's restaurants.
Voting ballots pertaining to the solicitation are due to the
company's information agent no later than 12 midnight, Eastern
Standard Time on July 7, 1997, unless extended. During a hearing
today in U.S. Bankruptcy Court in Columbia, S.C., the company
agreed that its Chapter 11 proceeding would be filed in South
Carolina.



Flagstar is one of the nation's largest restaurant companies,
with over 3,200 moderately-priced restaurants and annual revenues
of approximately $2.7 billion. Flagstar owns and operates the
Carrows, Coco's, Denny's, El Pollo Loco and Quincy's Family
Steakhouse restaurant brands and is the largest franchisee of
Hardee's.



CONTACT: Flagstar Larry Gosnell, 864/597-8658 (Investor) Karen
Randall, 864/597-8440 (Media)






Today's Man Files Plan of Reorganization



MOORESTOWN, N.J., June 23, 1997 - David Feld, Chairman and
Chief Executive Officer of Today's
Man, Inc.
(Nasdaq-NNM: TMANQ) announced today that the
Today's Man turnaround is substantially complete and that the
Company has filed a plan of reorganization with the United States
Bankruptcy Court in Delaware. The Company believes that its plan
allows for fair and equitable treatment of all major stakeholders
while providing creditors 100% recovery of their claims. Funding
for the plan, which is subject to court approval, will be
provided through a combination of the Company's cash on hand; a
rights offering to existing shareholders to purchase additional
stock of the Company; and debt financing.



"Filing our plan of reorganization is a significant
milestone for the Company. The fact that we intend to provide
creditors 100 cents on the dollar is further validation that the
Company has succeeded in both its financial and operational
turnaround and that the Today's Man concept continues to be
strong," said David Feld, Chairman and Chief Executive
Officer of Today's Man.



Key accomplishments in 1996 which contributed to the Company's
turnaround include:



- Returning to the original Today's Man vision -- Improving
communications with core customers -- Reducing corporate overhead
and focusing capital spending -- Operating the business using
cash generated from operations, eliminating the need to borrow
under the DIP facility -- Maintaining better in-stock positions
of core merchandise -- Expanding "Today's Man Rewards
Program" and increasing use and performance of Today's Man
credit card



"Today's Man has a fundamentally strong concept, and
under the leadership of David Feld, has achieved a remarkable
turnaround in a short period of time," said Jim Ammeen,
President and CEO of Neema Clothing Ltd. "We congratulate
them on achieving this important milestone and look forward to
working with them on a continuing basis as they emerge from
Chapter 11."



A hearing on the approval of the Company's disclosure
statement has been scheduled for July 22, 1997. The Company will
continue to negotiate with the creditors committee towards a
consensual agreement through the confirmation process.



Today's Man, Inc., which currently operates 25 menswear
superstores in the greater Philadelphia, New York and Washington
markets, is a men's apparel superstore retailer offering a wide
selection of tailored clothing, furnishings, sportswear and shoes
at everyday low prices.



SOURCE Today's Man, Inc. /CONTACT: Frank E. Johnson, Executive
Vice President and C.F.O., 609-722-6380, or David Feld, Chairman
of the Board and C.E.O, 609- 722-6340, both of Today's Man, Inc.;
or Michael Kempner, mkempnermww.com, or Carreen Winters,
cwintersmww.com, 201-507-9500, both of MWW/Strategic
Communications, Inc. for Today's Man, Inc./