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Technology Stocks : HS - CHS Electronics -- Ignore unavailable to you. Want to Upgrade?

To: pete2 who wrote (1492)	4/11/2000 11:54:00 AM
From: Robert Fischl	Respond to of 1494

As one of the lucky 508, I wonder what happens to Osario and Tull, my favorite CHS officers? FROM THE WSJ "April 6, 2000 CHS Electronics Chapter 11 Filing Lists $495M In Debt Dow Jones Newswires WASHINGTON -- The Chapter 11 bankruptcy petition of CHS Electronics Inc. (HS), filed Tuesday in the U.S. Bankruptcy Court in Miami, indicates the international distributor of microcomputer products has $100 million in assets and $495 million in debts as of April 3. The filing, recently obtained by Federal Filings Business News, estimates CHS, Miami, has between 100 and 199 creditors and that funds will be available for distribution to unsecured creditors. CHS also has 59,206,420 shares of common stock outstanding held by around 508 holders. Computer Associates International Inc. (CA) directly or indirectly owns, controls or holds, with power to vote, 5% or more of the company's voting securities. IBM Credit Corp. is CHS' largest unsecured creditor, with a $64.6 million claim stemming from a loan guarantee. Along with the Chapter 11 petition, a pre-negotiated plan of reorganization was filed. According to Thomas R. Lehman of Tew Cardenas Rebak Kellogg Lehman DeMaria & Tague L.L.P., counsel to CHS, a majority of the company's creditors support the plan. Overall, creditors representing about $275 million in claims against CHS have signed on to the plan. As reported, CHS said in a press release Tuesday that it had reached agreement with certain major creditors and Europa IT APS on key terms for a plan of reorganization, with the goal of having the plan confirmed by late August. The reorganization plan provides for the sale of CHS' European units, which represent a substantial portion of the company's total assets. CHS Electronics said the reorganization plan, if confirmed, would allow creditors to receive equity and/or debt securities of Europa IT in change for their approval of the sale of CHS' European units and the discharge of their claims. Under the terms of the agreement, CHS creditors would receive $67.5 million of Europa IT securities, 15% of Europa IT's common shares and 25% of the common shares of reorganized CHS. CHS would receive 5% of Europa IT's common shares. The proposed reorganization plan assumes that claims against CHS will not exceed $500 million. Europa IT is a Danish company formed by Mark E. Keough, CHS' former chief operating officer. The plan also calls for the reorganized CHS to emerge as an incubator and holding company for Internet companies engaged in business-to-business electronic exchanges. Lehman said the company won't need debtor-in-possession financing or a cash collateral stipulation because it has enough cash on hand to fund ongoing operations. The case, which has been assigned case number 00-12731, will be handled by U.S. Bankruptcy Judge Robert Mark. -Jeff St. Onge, Dow Jones Newswires/Federal Filings Business News; 202-628-7666; jeff.st.onge@fedfil.com"