Creditors File Reorganization Plans for Drug Store Company
AKRON, Ohio (AP) _ Creditors of Revco D.S. Inc. on Monday filed reorganization plans for the drug store chain, which has been operating under bankruptcy protection since 1988.
The committees representing trade creditors, unsecured noteholders and the New York Life Insurance and Annuity Corp. filed the plans in U.S. Bankruptcy Court in Akron.
Details of the plans were not available Monday, said committee spokeswoman Susan Loewe. A statement said the plans included a system of payment for creditors and stockholders, as well as a proposed settlement of litigation stemming from Revco’s failed buyout.
Revco, which operates more than 1,100 drug stores in 10 eastern states, was taken private in 1986 with money raised through the issuance of high-yield junk bonds. The company entered bankruptcy protection in July 1988 when it couldn’t meet interest payments.
The company owes creditors about $1.5 billion and has sought to trim expenses by selling 700 stores and renovating 43 others. Chapter 11 enables a business to continue functioning while devising a plan to repay debts.
Revco filed its own reorganization plan with the court in June.
In July, Revco reported a fourth-quarter loss of $2.99 million, an improvement over the $17.2 million loss in the same quarter a year earlier.
For the year ended June 1, Revco’s parent, Anac Holding Corp., lost $65.2 million, a decline from the adjusted loss of $59.5 million suffered in the previous fiscal year. Without adjusting for the sale of 712 unprofitable Revco stores, Anac lost $232.7 million in fiscal 1990.