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To: sks1 who wrote (1467)	10/26/1998 8:54:00 PM
From: Daniel	of 1567

dailynews.yahoo.com : Monday October 26 8:40 PM EDT Boston Chicken Tackling Bankruptcy By TIM MOLLOY Associated Press Writer PHOENIX (AP) - A judge Monday approved a multimillion-dollar plan by Boston Chicken Inc. (BOST - news) to convince managers not to abandon the company during its Chapter 11 bankruptcy proceedings. U.S. Bankruptcy Judge Charles G. Case made the decision after CEO Michael Jenkins testified that managers at Boston Market stores had been quitting in droves since the restaurant chain disclosed its financial troubles in July. Jenkins said the reorganization plan could cost as much as $18 million over the next two years. It would feature $15,000 bonuses paid out over two years to general managers and higher bonuses for upper-level managers. Jenkins said it could cost the company three times as much if it was forced to replace them. ''We have 800 stores and just over 700 general managers. The other stores are operating on wishes, hopes and prayers. This is a fairly desperate situation,'' he said. Golden, Colo.-based Boston Chicken filed for Chapter 11 bankruptcy protection here on Oct. 5 when it could not come up with a $283 million loan payment due Oct. 17. The company closed 178 of its stores that operate under the Boston Market name, putting hundreds out of work. Boston Chicken continues to operate 759 company-owned stores. Franchisees are running the balance of the roughly 900 stores in the system during the reorganization. Attorneys for Boston Chicken's creditors told the judge they wanted another week to study the reorganization proposal. ''We are not trying to make the point that this is too much,'' attorney Evan D. Flaschen said. ''We're trying to make the point that we don't understand it.'' Boston Chicken went public five years ago and saw its shares reach prices as high as $50. But its stock plummeted by the time it declared bankruptcy, trading as low as 50 cents per share. Some analysts said the company had expanded too quickly and lost focus. Between May 1992 and this year, Boston Chicken grew from 34 stores in the Northeast to 1,143 nationwide. Sales jumped from about $21 million in December 1991 to nearly $1.2 billion in 1996.

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