Macy to outline reorganizationR.H. Macy & Co. said it will...


March 19, 1994

Macy to outline reorganization

R.H. Macy & Co. said it will present an outline of its reorganization plan next week, providing the first glimpse of how much creditors will receive on their claims.

The New York Post reported yesterday that Macy is working on a plan to pay unsecured creditors up to 50 cents on the dollar, triple earlier estimates. Such a payout would value the retailer at about $4 billion, analysts said.

Analysts are divided over whether Macy, which filed for bankruptcy protection in January 1992, is worth that much. Macy's management may want to boost the value of the company from its earlier estimates to thwart a takeover attempt by Federated Department Stores Inc., which bought almost $500 million of Macy's secured debt in January, analysts said.

New state jobless claims on rise

The number of Marylanders filing new unemployment insurance claims jumped 14.5 percent in the week that ended March 5, the state reported yesterday.

The Department of Economic and Employment Development said 4,343 newly unemployed Marylanders filed for their first jobless benefits two weeks ago, up from 3,793 the week before.

Crestar buys NVR Bank

Crestar Financial Corp. said it completed its purchase of NVR Inc.'s NVR Savings Bank unit for $44 million.

Richmond, Va.-based Crestar also said it has completed the purchase of Providence Savings and Loan Association of Vienna, Va., from Miller and Smith Holding Inc., a McLean real estate investment firm. Terms weren't disclosed.

Richmond, Va.-based Crestar said it plans to hire about half of the 210 employees of the two institutions; the rest will lose their jobs.

Firm begins to liquidate assets

Columbia Real Estate Investments Inc. said yesterday that it has negotiated sales of most of the company's assets and has pending contracts on the balance.

The company said it believes that if all these sales were completed, shareholders would receive about $10 a share. Columbia Real Estate, whose shareholders recently elected to liquidate the company, expects that all these transactions would be concluded soon and that a distribution would be made to shareholders within 45 to 60 days.

Saturn to cut production by 27%

Saturn Corp., with a 91-day supply of new cars on its plant parking lots, will cut production by 27 percent, to 800 cars a day, the General Motors Corp. subsidiary said yesterday.

A Saturn spokesman blamed the oversupply on transportation problems caused by the severe winter weather.

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