Kelly-Johnston Enterprises Files Amended Statement / Calls for 1 Million New Shares

Article excerpt

About 1 million shares of new common stock in the reorganized Kelly-Johnston Enterprises Inc. would be divided between the parent company and its four subsidiaries upon confirmation of its first amended disclosure statement filed in U.S. Bankruptcy Court Monday.

Kelly-Johnston President Ray Koss previously announced that after negotiations with the attorneys for the unsecured creditors committees, shareholders would receive nothing in the reorganized company.

The original joint plan was filed on Jan. 17. Oklahoma City-based Kelly-Johnston and its four subsidiaries filed for protection under Chapter 11 on April 26.

Under the second plan, 185,000 shares would be taken away from debenture holders and combined with the total shareholders' stock in a pool of 1 million shares. Those would be distributed as follows: Kelly-Johnston, 66,667; Duff's Enterprises Inc., 200,000; Joe Kelly's Inc., 16,666; Chi Chi's Food Services Inc., 666,667 and B&W Metals Inc., 50,000.

In the first disclosure statement and plan filed, each creditors committee would be reduced to one member and be consolidated to form the New Creditors' Committee. Under the revised plan, those five members would serve on the board of directors until a new board could be elected by the shareholders of the reorganized company.

Changes were made in the reclassification of creditors, dividing one group into five groups. …