NEW YORK, Sept. 14 /PRNewswire/ -- Barney's Inc. and the Official
Committee of Unsecured Creditors (the Committee) announced today that a
purchase agreement ("Agreement") has been signed with Dickson Concepts
(International) Limited ("DCIL") to move forward with the plan for the Hong
Kong-based company to invest in the New York retailer as part of the
recapitalization of Barney's Inc.
The announcement comes after several extensions in the deadline for the
execution of the Agreement due to the detailed and extensive nature of the
Agreement. The Company said that, "we look forward to moving on to the next
step in the restructuring of Barneys."
Under the terms of the Agreement, DCIL will (1) pay $205 million in cash;
(2) issue a $42 million note to be funded by royalty payments; and (3) provide
for the distribution of 49% of the equity in the reorganized Barneys to the
Company's constituents (subject to certain dilution rights).
The Company intends to file a motion on Monday, September 15, 1997, to
obtain the approval of the Bankruptcy Court to provide certain bidder
protections to DCIL in accordance with the terms of the Agreement.
Barney's Inc. and certain of its subsidiaries voluntarily filed a petition
of reorganization under Chapter 11 on January 10, 1996.
SOURCE Barney's Inc.
/CONTACT: Sandra Sternberg or Brenda Adrian, both of Sitrick And Company,
310-788-2850 for Barney's Inc./
CO: Barney's Inc.; Dickson Concepts (International) Limited
ST: New York
-0- (PRN) Sep/14/97 18:30
EOS (PRN) Sep/14/97 18:30 **
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