Revco Tosses Itself A Life Preserver
The twists and turns in the bidding for Revco DS may be just about over. A plan filed by management of the drugstore chain and backed by Chicago-based investors Zell/Chilmark Fund LP looks like the winner, knocking out Jack Eckerd Corp., Revco's Florida-based rival. That means Revco, which in 1988 became the first big leveraged-buyout bankruptcy, will likely survive as an independent company. It even might go public again by springtime.
Under the Revco plan, equity holders would get nothing for their stake, and junior debtholders would receive just pennies on the dollar. But some secured creditors, such as Revco's banks, would get close to their original claims.