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Non-Tech : Pathmark SUGHP.OB -- Ignore unavailable to you. Want to Upgrade?

To: Philip Armstrong who wrote (3)	4/24/2000 11:52:00 AM
From: Paul Berliner	Read Replies (2) \| Respond to of 23

Pathmark Reports Fourth Quarter and Fiscal 1999 Results 03/22/2000 CARTERET, N.J.--(BUSINESS WIRE)--March 22, 2000-- Discussions Initiated with Bondholders Towards Consensual Financial Restructuring Wasserstein Perella & Co. Retained to Assist in Restructuring Process Pathmark Stores, Inc. reported unaudited results for its 1999 fourth quarter and fiscal year ended January 29, 2000. Sales for the fourth quarter of fiscal 1999 increased 4.3% to $956.1 million compared to $916.3 million in the prior year. For fiscal 1999, sales increased 1.2% to $3,698.1 million compared to $3,655.2 million in fiscal 1998. Same store sales in fiscal 1999 increased 2.2% and 0.6% in the fourth quarter and the fiscal year, respectively. Operating cash flow (FIFO EBITDA) for the fourth quarter of fiscal 1999 was $60.6 million compared to $58.1 million in the prior year and for fiscal 1999 was $211.7 million compared to $212.5 million in the prior year. Operating earnings for the fourth quarter of fiscal 1999 were $42.0 million compared to $37.1 million in the prior year and for fiscal 1999 were $133.7 million compared to $133.9 million in the prior year. The comparisons of operating earnings were impacted by a pretax LIFO credit of $1.2 million in the fourth quarter of fiscal 1999 compared to a LIFO charge of $2.3 million in the prior year fourth quarter and a LIFO credit of $0.1 million in fiscal 1999 compared to a LIFO charge of $3.4 million in the prior year. The company reported a net loss of $2.1 million in the fourth quarter of fiscal 1999 compared to a net loss of $4.6 million in the prior year and for fiscal 1999 a net loss of $31.4 million compared to a net loss of $28.5 million in the prior year. Operating earnings and the net loss for fiscal 1998 include a $5.1 million gain on the sale of certain real estate. Company Initiates Bondholder Discussions Pathmark Stores, Inc. also announced today that an ad hoc committee of its bondholders has been formed. The Company has commenced discussions with this committee towards developing a consensual restructuring plan to deleverage the Company's capital structure. The company said that it is only seeking to restructure its bond debt and the preferred stock of its parent company, Supermarkets General Holding Corp., and does not intend to impair in any way its trade creditors or implement layoffs as part of a restructuring plan. Jim Donald, chairman, president and chief executive officer of Pathmark Stores Inc., said, "Pathmark's underlying operations are strong as evidenced by our third consecutive year of same store sales increases in a highly competitive marketplace. In order to remain competitive, however, we must reinvest cash flow in our business and restructure our balance sheet to reduce our substantial debt burden. "We believe a timely and efficient financial restructuring will have virtually no impact on day-to-day operations and will enable us to realize the significant value that exists in the Pathmark franchise." In addition, Pathmark said that it has retained the investment banking firm of Wasserstein Perella & Co. in order assist it in developing a financial restructuring plan. Pathmark Stores Inc., is a regional supermarket company currently operating 135 supermarkets primarily in the New York - New Jersey and Philadelphia metropolitan areas. The matters discussed herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. For additional information about the company and its various risk factors, see the company's most recent Form 10-K dated Jan. 30, 1999, as filed with the Securities and Exchange Commission on April 29, 1999, and the company's most recent 10-Q dated Oct. 30, 1999, as filed with the Securities and Exchange Commission on Dec. 13, 1999, and other documents as filed with the Securities and Exchange Commission. Pathmark Stores, Inc. Operating Results (unaudited) (Dollars in Millions) 13 Weeks Ended 52 Weeks Ended 1/29/00 1/30/99 1/29/00 1/30/99 Sales $956.1 $916.3 $3,698.1 $3,655.2 Operating earnings $ 42.0 $ 37.1 $133.7 $133.9(a) Interest expense (42.1) (40.2) (163.1) (160.8) Loss before taxes (0.1) (3.1) (29.4) (26.9)(a) Income tax provision (b) (2.0) (1.5) (2.0) (1.6) Net loss $ (2.1) $(4.6) $(31.4) $(28.5)(a) Operating cash flow (c) $ 60.6 $58.1 $211.7 $212.5 Operating cash flow (% to sales) 6.3% 6.3% 5.7% 5.8% Memo: LIFO charge $(1.2) $2.3 $(0.1) $ 3.4 (a) Includes a $5.1 million pretax gain on the sale of certain real estate. (b) The Company has recorded a valuation allowance related to the income tax benefit for the 13 and 52 weeks ended 1/29/00 and 1/30/99; therefore, no income tax benefit has been recognized. (c) Operating cash flow represents earnings from operations before interest, income taxes, depreciation, amortization, the gain on the sale of real estate and the LIFO charge(credit). CONTACT: Pathmark Stores, Inc. Frank Vitrano, 732/499-4327

To: Philip Armstrong who wrote (3)	4/27/2000 2:42:00 PM
From: Paul Berliner	Read Replies (1) \| Respond to of 23

The restructuring/recapitalizion discussions may be brutal. Grand Union had an identical situation in 1998. The company ceased trading in early 98 and the recapped company started trading again in 8/98 at $8/share. The price is currently under $2! Whatever you get for the PMK convertible debt should be dumped immediately after receipt. All the Banks that are on the hook will liquidate any equity they get just like they did to GUCO: marketguide.com LOL: April 17, 2000 Federal authorities have informed The Grand Union Company that Donald C. Vaillancourt of Park Ridge, NJ, a former Vice President of the Company, was arrested by the Federal Bureau of Investigation in connection with charges that Mr. Vaillancourt embezzled substantial sums of money while employed by Grand Union. Mr. Vaillancourt, an attorney, was employed by the Company from 1971 until his termination last February as part of a corporate reduction in force. After conducting an internal investigation over the last several weeks, officials at Grand Union contacted the FBI and the United States Attorney's Office in Newark last week. The Company has notified its insurance carrier and will seek to recover any embezzled funds expeditiously. Grand Union does not anticipate that the allegedly embezzled funds will have an adverse impact on its financial statements, because the funds were already accounted for as expenses in prior financial statements.