Play-By-Play Toys & Novelties, Inc. Comments on Status Of Convertible Debenture Restructuring

Apr 02, 2001, 01:00 ET from Play-By-Play Toys & Novelties, Inc.

    SAN ANTONIO, April 2 /PRNewswire/ --
 Play-By-Play Toys & Novelties, Inc. (Nasdaq:   PBYP) today announced that the
 holders of its Convertible Debentures have agreed to extend the standstill
 period until Friday, April 13, 2001 in order for the Company to secure the
 senior lender's consent to certain terms of the agreement between the Company
 and the holders of the Convertible Debentures to restructure and extend the
 final maturity of the Debentures.  The Company previously announced that it
 had reached an agreement in the form of a term sheet with the holders of its
 Convertible Debentures to restructure and extend the final maturity of the
 Debentures until December 31, 2002.  The agreement is subject to the payment
 by the Company of past due principal and interest due under the Debentures.
     As a result of defaults outstanding under the Company's senior credit
 facility, the Company is prohibited from making payments of principal or
 interest to subordinated creditors without the consent of its senior lender.
 For the recently reported quarter ended January 31, 2001, the Company violated
 net worth covenants of its senior credit facility.  The Company is also in
 default in the payment of principal and interest due under the Debentures
 which has resulted in the violation by the Company of certain cross-default
 covenants of its senior credit facility.  The Company, the holders of the
 Debentures and the senior lender are in discussions relative to the principal
 and interest payment provisions of the agreement.  There can be no assurance
 that the senior lender will approve the payment by the Company of past due
 principal and interest due under the Debentures, or that the Company will be
 able to satisfactorily restructure the Debentures.  If the Company is unable
 to secure the senior lender's approval of the payments, or fails to
 restructure and extend the Debentures, all amounts would be due and payable
 and the Company has insufficient funds to satisfy such obligations.
     Play-By-Play Toys & Novelties, Inc. designs, develops, markets and
 distributes a broad line of quality stuffed toys, novelties and consumer
 electronics based on its licenses for popular children's entertainment
 characters, professional sports team logos and corporate trademarks.  The
 Company also designs, develops and distributes electronic toys and
 non-licensed stuffed toys, and markets and distributes a broad line of
 non-licensed novelty items. Play-By-Play has license agreements with major
 corporations engaged in the children's entertainment character business,
 including Warner Bros., Paws, Incorporated, Nintendo, and many others, for
 properties such as Looney Tunes(TM), Batman(TM), Superman(TM), Garfield(TM)
 and Pokemon(TM).
 
     Except for the historical information contained herein, the matters
 discussed in this release are forward-looking statements that involve risks
 and uncertainties that could cause actual results to differ materially,
 including, without limitation, risks associated with the Company's liquidity
 and capital resources, relationships with licensors, competitive and economic
 factors, price changes by competitors, ability to manage growth, ability to
 source products, international trade relations, management of quarter to
 quarter results, increase in costs of raw materials, timing of technological
 advances by the Company and its competitors, lack of acceptance by consumers
 of new products, and the other factors discussed in the "Risk Factors" section
 of the Company's Form 10-K dated July 31, 2000. Updated information will be
 periodically provided by the Company as required by the Securities Exchange
 Act of 1934.
 
 

SOURCE Play-By-Play Toys & Novelties, Inc.
    SAN ANTONIO, April 2 /PRNewswire/ --
 Play-By-Play Toys & Novelties, Inc. (Nasdaq:   PBYP) today announced that the
 holders of its Convertible Debentures have agreed to extend the standstill
 period until Friday, April 13, 2001 in order for the Company to secure the
 senior lender's consent to certain terms of the agreement between the Company
 and the holders of the Convertible Debentures to restructure and extend the
 final maturity of the Debentures.  The Company previously announced that it
 had reached an agreement in the form of a term sheet with the holders of its
 Convertible Debentures to restructure and extend the final maturity of the
 Debentures until December 31, 2002.  The agreement is subject to the payment
 by the Company of past due principal and interest due under the Debentures.
     As a result of defaults outstanding under the Company's senior credit
 facility, the Company is prohibited from making payments of principal or
 interest to subordinated creditors without the consent of its senior lender.
 For the recently reported quarter ended January 31, 2001, the Company violated
 net worth covenants of its senior credit facility.  The Company is also in
 default in the payment of principal and interest due under the Debentures
 which has resulted in the violation by the Company of certain cross-default
 covenants of its senior credit facility.  The Company, the holders of the
 Debentures and the senior lender are in discussions relative to the principal
 and interest payment provisions of the agreement.  There can be no assurance
 that the senior lender will approve the payment by the Company of past due
 principal and interest due under the Debentures, or that the Company will be
 able to satisfactorily restructure the Debentures.  If the Company is unable
 to secure the senior lender's approval of the payments, or fails to
 restructure and extend the Debentures, all amounts would be due and payable
 and the Company has insufficient funds to satisfy such obligations.
     Play-By-Play Toys & Novelties, Inc. designs, develops, markets and
 distributes a broad line of quality stuffed toys, novelties and consumer
 electronics based on its licenses for popular children's entertainment
 characters, professional sports team logos and corporate trademarks.  The
 Company also designs, develops and distributes electronic toys and
 non-licensed stuffed toys, and markets and distributes a broad line of
 non-licensed novelty items. Play-By-Play has license agreements with major
 corporations engaged in the children's entertainment character business,
 including Warner Bros., Paws, Incorporated, Nintendo, and many others, for
 properties such as Looney Tunes(TM), Batman(TM), Superman(TM), Garfield(TM)
 and Pokemon(TM).
 
     Except for the historical information contained herein, the matters
 discussed in this release are forward-looking statements that involve risks
 and uncertainties that could cause actual results to differ materially,
 including, without limitation, risks associated with the Company's liquidity
 and capital resources, relationships with licensors, competitive and economic
 factors, price changes by competitors, ability to manage growth, ability to
 source products, international trade relations, management of quarter to
 quarter results, increase in costs of raw materials, timing of technological
 advances by the Company and its competitors, lack of acceptance by consumers
 of new products, and the other factors discussed in the "Risk Factors" section
 of the Company's Form 10-K dated July 31, 2000. Updated information will be
 periodically provided by the Company as required by the Securities Exchange
 Act of 1934.
 
 SOURCE  Play-By-Play Toys & Novelties, Inc.