WASHINGTON, Oct. 7 /PRNewswire/ -- Crown Books Corporation (OTC Bulletin Board: CRWNQ) today announced that the United States Bankruptcy Court overseeing Crown's reorganization case has confirmed its plan of reorganization, and that the Company plans to emerge from bankruptcy protection within the next 30 days as a much healthier, financially stable company. Under the plan of reorganization, all of Crown's unsecured claims will be converted into common stock of the reorganized company. The Company plans to list its stock shortly on a national exchange. Crown will thus emerge from Chapter 11 debt free except for a $35 million working capital line of credit provided by Paragon Capital, LLC. An affiliate of Shenkman Capital Management, Inc., a New York based money management firm with $2.5 billion under management, will be the largest individual shareholder of the reorganized company, with approximately one-third of the stock. Shenkman Capital has nominated a majority of the new directors of reorganized Crown. In a related announcement, Crown stated that Anna Currence, the Company's president and CEO, will be leaving the Company to pursue other interests. Ms. Currence will be replaced on an interim basis by Steve Panagos of Zolfo Cooper, Crown's financial advisor, until a permanent successor can be found. Zolfo Cooper, a leading consulting firm specializing in advising companies in operational and financial restructurings, has worked closely with Crown on all aspects of the restructuring since the filing date. The Company also announced that it has entered into a consulting relationship with Gordon Macomber, former President of Macmillan Reference USA and a director-elect to the new Crown board of directors, to assist Crown during the transition period. Ms. Currence has been CEO of Crown since it entered Chapter 11 and has skillfully guided the Company through the reorganization process. "We all owe a large debt of gratitude to Anna and the Crown management team. At the time of the filing of the Chapter 11 proceedings, Crown faced an uncertain future, but thanks to Anna's leadership, hard work and determination Crown is now back on its feet and is about to emerge from Chapter 11," said Mr. Panagos. "One of Anna's strengths has been her ability to attract and maintain a strong management team in both operations and merchandising. I look forward to working with these talented individuals as we implement Crown's growth plan." Robert Miller, Senior Managing Director of Shenkman Capital, said: "Anna was particularly effective, among other things, in managing the Company's reorganization efforts. We now look forward to finding a new leader to build upon the strong foundation Anna set to help identify new opportunities in the marketplace and position Crown for continued growth." Headquartered in Landover, Maryland, Crown is among the country's largest bookstore chains, with 92 stores located in five major metropolitan areas: Washington, D.C., Chicago, San Francisco, Los Angeles and San Diego. Crown is known for its ability to profitably sell books at the lowest price of any traditional or Internet bookseller in the market today. Crown employs 1,700 associates and has annual sales of approximately $200 million.
SOURCE Crown Books Corporation