GOLDEN BOOKS FAMILY ENTERTAINMENT ANNOUNCES NEGOTIATIONS TOWARD A
RESTRUCTURING AGREEMENT
New York, February 17, 1999 -- Golden Books Family
Entertainment, Inc. (Nasdaq: GBFE) (the ''Company'') announced
today that it was negotiating an agreement in principal with its
major creditors pursuant to which it will significantly reduce
its existing long-term debt, pay all trade debt in full and,
under the direction of its current management team, proceed with
its publishing and entertainment operations.
Pursuant to the negotiations, existing preferred and common
shareholders will surrender their stock for out-of-the money
warrants to purchase a small percentage of the new company stock
to be issued post-recapitalization. Such recapitalization will be
effectuated pursuant to a ''prearranged'' plan. The Company also
stated that the report yesterday on CNBC generally reflected the
current state of the negotiations.
There can be no assurance that the Company will reach an
agreement with its institutional creditors, what the terms of the
agreement will be, or whether any agreed-upon plan will obtain
the requisite court approval.
The Company is the leading publisher of children's books in
North America and owns one of the largest libraries of family
entertainment copyrights. The Company creates, publishes and
markets entertainment products for children and families through
all media.
This press release includes statements which may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. Although the Company believes the expectations contained in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. This
information may involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Factors which could cause or contribute to such
differences include, but are not limited to, factors detailed in
the Company's Securities and Exchange Commission filings.
Investor/Press Contact: Philip Galanes, Chief Administrative
Officer, Golden Books Family Entertainment, 212-547-4466. |
