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
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
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