New World Announces Agreements to Support Reorganization Plan Filed for Einstein/Noah

Apr 05, 2001, 01:00 ET from New World Coffee-Manhattan Bagel, Inc.

    EATONTOWN, N.J., April 5 /PRNewswire/ --
 New World Coffee-Manhattan Bagel, Inc. (Nasdaq:   NWCI) announced today that it
 has entered into an agreement with the Trustee of the Boston Chicken Plan
 Trust, the majority stockholder of Einstein/Noah Bagel Corp. ("ENBC"), to
 support confirmation of the Plan of Reorganization (the "Plan") filed by the
 Trustee in the Chapter 11 cases of ENBC and Einstein/Noah Bagel Partners, L.P.
 ("ENBP"), now pending in the United States Bankruptcy Court for the District
 of Arizona (the "Court").  In addition, New World announced that it has also
 entered into an agreement with one of the Trustee's proposed exit lenders for
 the Plan, to confirm New World's support for the Plan.
     The Plan was filed by Gerald Smith in his capacity as Trustee of the
 Boston Chicken Plan Trust, which arose from the Boston Market bankruptcy
 proceeding.  Mr. Smith, as Trustee, owns 51% of the outstanding common stock
 of ENBC.  The Plan delivers more value to the creditor stakeholders of ENBC
 than they would receive under the asset sale contract presently before the
 Court, as the Plan proposes to pay in full or reinstate all allowed creditor
 claims in the ENBC and ENBP cases.  The Plan also benefits the public
 stockholders of ENBC by granting them an ownership stake in the reorganized
 company if it is approved, as compared to receipt of no consideration or value
 under the proposed asset sale.
     Under the Plan, holders of ENBC's 7.25% Debentures due June 2004 shall be
 given the option of converting to equity in the reorganized ENBC or having
 their bonds reinstated through payment of all accrued interest and future
 compliance with the terms of the Indenture.  New World owns and controls
 approximately $61.5 million of such Debentures.
     Pursuant to New World's agreement with one of the Trustee's proposed exit
 lenders, New World agreed to convert its Debentures to equity in reorganized
 ENBC.  Under the conversion price and formulae in the Plan, New World
 anticipates receiving approximately 3.9 million shares of reorganized ENBC's
 new common stock.
     Smith and New World expect that substantially all present employees and
 officers of the reorganized ENBC and ENBP will continue to work for the
 reorganized companies.
 
     New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or
 owns stores under its four brands in 26 states and Washington, D.C. The
 Company is vertically integrated in bagel dough manufacturing and coffee
 roasting, with plants in New Jersey, California and Connecticut.
 
     Certain statements in this press release constitute forward-looking
 statements or statements which may be deemed or construed to be
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  The words "forecast," "estimate," "project,"
 "intend," "expect," "should," "would" and similar expressions and all
 statements which are not historical facts are intended to identify
 forward-looking statements.  These forward-looking statements involve and are
 subject to known and unknown risks, uncertainties and other factors which
 could cause the Company's actual results, performance (financial or
 operating), or achievements to differ from the future results, performance
 (financial or operating), or achievements expressed or implied by such
 forward-looking statements. The above factors are more fully discussed in the
 Company's SEC filings.
 
 

SOURCE New World Coffee-Manhattan Bagel, Inc.
    EATONTOWN, N.J., April 5 /PRNewswire/ --
 New World Coffee-Manhattan Bagel, Inc. (Nasdaq:   NWCI) announced today that it
 has entered into an agreement with the Trustee of the Boston Chicken Plan
 Trust, the majority stockholder of Einstein/Noah Bagel Corp. ("ENBC"), to
 support confirmation of the Plan of Reorganization (the "Plan") filed by the
 Trustee in the Chapter 11 cases of ENBC and Einstein/Noah Bagel Partners, L.P.
 ("ENBP"), now pending in the United States Bankruptcy Court for the District
 of Arizona (the "Court").  In addition, New World announced that it has also
 entered into an agreement with one of the Trustee's proposed exit lenders for
 the Plan, to confirm New World's support for the Plan.
     The Plan was filed by Gerald Smith in his capacity as Trustee of the
 Boston Chicken Plan Trust, which arose from the Boston Market bankruptcy
 proceeding.  Mr. Smith, as Trustee, owns 51% of the outstanding common stock
 of ENBC.  The Plan delivers more value to the creditor stakeholders of ENBC
 than they would receive under the asset sale contract presently before the
 Court, as the Plan proposes to pay in full or reinstate all allowed creditor
 claims in the ENBC and ENBP cases.  The Plan also benefits the public
 stockholders of ENBC by granting them an ownership stake in the reorganized
 company if it is approved, as compared to receipt of no consideration or value
 under the proposed asset sale.
     Under the Plan, holders of ENBC's 7.25% Debentures due June 2004 shall be
 given the option of converting to equity in the reorganized ENBC or having
 their bonds reinstated through payment of all accrued interest and future
 compliance with the terms of the Indenture.  New World owns and controls
 approximately $61.5 million of such Debentures.
     Pursuant to New World's agreement with one of the Trustee's proposed exit
 lenders, New World agreed to convert its Debentures to equity in reorganized
 ENBC.  Under the conversion price and formulae in the Plan, New World
 anticipates receiving approximately 3.9 million shares of reorganized ENBC's
 new common stock.
     Smith and New World expect that substantially all present employees and
 officers of the reorganized ENBC and ENBP will continue to work for the
 reorganized companies.
 
     New World Coffee-Manhattan Bagel, Inc. currently franchises, licenses or
 owns stores under its four brands in 26 states and Washington, D.C. The
 Company is vertically integrated in bagel dough manufacturing and coffee
 roasting, with plants in New Jersey, California and Connecticut.
 
     Certain statements in this press release constitute forward-looking
 statements or statements which may be deemed or construed to be
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  The words "forecast," "estimate," "project,"
 "intend," "expect," "should," "would" and similar expressions and all
 statements which are not historical facts are intended to identify
 forward-looking statements.  These forward-looking statements involve and are
 subject to known and unknown risks, uncertainties and other factors which
 could cause the Company's actual results, performance (financial or
 operating), or achievements to differ from the future results, performance
 (financial or operating), or achievements expressed or implied by such
 forward-looking statements. The above factors are more fully discussed in the
 Company's SEC filings.
 
 SOURCE  New World Coffee-Manhattan Bagel, Inc.