Bancroft Holding's sub proposes liquidation

Business Wire, Feb 13, 1995

NEW YORK--(BUSINESS WIRE)--Feb. 13, 1995--(OTC/Bulletin Board-BCRH) Bancroft Holding Corp.'s subsidiary, Bancroft Plaza Inc., which filed for Chapter 11 Bankruptcy Protection on Nov. 7, 1994 intends, subject to approval of the United States Bankruptcy Court, to convert its Chapter 11 Plan of Reorganization into a Chapter 11 Liquidation Plan.

The plan involves Bancroft Plaza's consignor, K & M Retail Management Co. and PNC Bank, Bancroft Plaza's secured creditor. Bancroft Plaza operates retail apparel stores in New York City. It is the intention of Bancroft Plaza to wind down its operations, in an orderly manner, by June 1995.

It is not anticipated that the shareholders of Bancroft Plaza, including Bancroft Holding Corp., which owns approximately 65% of Bancroft Plaza's outstanding shares, as well as Bancroft Plaza's Preferred Shareholders, will receive any proceeds from the liquidation, as it is believed there will be insufficient proceeds to satisfy the claims of creditors. If the Liquidation Plan is not approved by the Bankruptcy Court, the Chapter 11 filing will be immediately converted to a Chapter 7 liquidation.

Bancroft Holding Corp. owns 100% of Rt. 111 Hauppauge Beverages Ltd., a Long Island, N.Y. based beverage distributor.

CONTACT: Bancroft Holding Corp.

Tom Kellermann, 212/682-3806