Great American Financial Resources, Inc. Announces Write-Down of Investment in Chiquita
PR NEWSWIRE - January 16, 2001 11:02
CINCINNATI, Jan 16, 2001 /PRNewswire via COMTEX/ -- Great American Financial Resources, Inc. (NYSE: GFR) today announced that its financial results for the fourth quarter of 2000 will include a write-down of its investment in Chiquita Brands International, Inc. Chiquita today announced an initiative designed to resolve its upcoming debt maturities and improve its financial liquidity.
Chiquita's press release stated, "If successful, the restructuring would result in the conversion of a significant portion of Chiquita's outstanding $862 million of public debt into common equity. As part of this initiative, (Chiquita) is discontinuing as of today all interest and principal payments on its public debt, including $87 million of subordinated debentures due on March 28, 2001. As a result, all of such debt may become subject to acceleration. In addition, such a restructure, whether or not administered through a court proceeding, would adversely affect the holders of Chiquita's common and preferred stock."
GAFRI holds 2.7 million shares of Chiquita's common stock. As a result of Chiquita's announcement, GAFRI plans to write-down its investment in Chiquita to market value. As of September 30, 2000, the investment in Chiquita was carried at $11.5 million.
Since the investment in Chiquita is owned by GAFRI, this write-down will not impact the capital of GAFRI's insurance subsidiaries or their ability to pay dividends. GAFRI expects to release its 2000 financial results in early |
