Court Approves Settlement Regarding Asset Distribution
EATONTOWN, N.J., Aug. 20 /PRNewswire-FirstCall/ -- New World Restaurant
Group (Pink Sheets: NWCI) today announced that the Bankruptcy Court with
jurisdiction of the proceedings of ENBC, Inc. (formerly Einstein/Noah Bagel
Corp.), and ENBP, L.P. (formerly Einstein/Noah Bagel Partners) approved a
settlement of the litigation concerning the distribution of the assets of the
two estates. Under the settlement agreement approved by the court,
$17.1 million is to be paid to creditors of ENBC, of which approximately
49 percent, or $8.3 million, is to be paid to New World. Distribution of the
proceeds from the ENBC and ENBP estates approved today in the U.S. Bankruptcy
Court, District of Arizona, follows earlier distributions to New World
totaling $27.9 million, bringing the company's aggregate proceeds to date to
approximately $36.2 million.
The payments are made in connection with New World's ownership of
approximately $61.5 million in bonds issued by ENBC, which, along with ENBP,
filed for Chapter 11 bankruptcy protection in April 2000. In June 2001, New
World acquired the assets of ENBC and ENBP at a bankruptcy auction for
$160 million in cash and the assumption of certain liabilities.
All proceeds from the bankruptcy distributions are being utilized by New
World to repay an asset-backed secured loan to its wholly owned non-restricted
subsidiary, EnbcDeb Corp., and an investment in New World Greenlight, LLC. As
of July 2, 2002, the amounts owed aggregated $15.0 million after giving effect
to distributions since that date, including the amount to be paid under the
settlement agreement. New World may receive additional proceeds distributed
before the bankruptcy case is closed, with the amount of future distributions
uncertain at this time. Any remaining amounts then owed by New World on the
asset-backed loan and the investment will be settled by the issuance of
preferred stock.
With today's action in the Bankruptcy Court, we've taken another major
step in closing the book on the Einstein acquisition,
said Anthony Wedo, New
World chairman and CEO. Following this latest distribution, the actual
proceeds exceed by approximately $2.0 million the carrying value of the
investment as stated at fiscal 2001 year end.
New World is a leading company in the quick casual sandwich industry, the
fastest-growing restaurant segment. The company operates locations primarily
under the Einstein Bros and Noah's New York Bagels brands and primarily
franchises locations under the Manhattan Bagel and Chesapeake Bagel Bakery
brands. As of July 2, 2002, the company's retail system consisted of 460
company-owned locations and 290 franchised and licensed locations in 34
states. The company also operates one dough production facility and one
coffee roasting plant.
Certain statements in this press release constitute forward-looking
statements or statements which may be deemed or construed to be forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words forecast,
estimate,
project,
intend,
expect,
should,
would,
believe
and similar expressions and all
statements which are not historical facts are intended to identify forward-
looking statements. These forward-looking statements involve and are subject
to known and unknown risks, uncertainties and other factors which could cause
the company's actual results, performance (financial or operating), or
achievements to differ from the future results, performance (financial or
operating), or achievements expressed or implied by such forward-looking
statements. The above factors are more fully discussed in the company's SEC
filings.
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SOURCE New World Restaurant Group
-0- 08/20/2002
/CONTACT: Media - Judy Feinberg of Edelman, +1-312-240-2817,
judy.feinberg@edelman.com; or Investors - Bill Parness of Parness &
Associates, +1-732-290-0121, parnespr@optonline.net, both for New World
Restaurant Group/
/Web site: http://www.newworldrestaurantgroup.com /
(NWCI)
CO: New World Restaurant Group; ENBC, Inc.; ENBP, L.P.;
EnbcDeb Corp.; New World Greenlight, LLC
ST: New York
IN: RST REA FIN RLT
SU: BCY
MW
-- NYTU120 --
2015 08/20/2002 16:15 EDT http://www.prnewswire.com
