May 21, 1992
HORN/HARDART, DEBT HOLDERS IN EXCHANGE DEAL
Reuters NewsHORN/HARDART, DEBT HOLDERS IN EXCHANGE DEAL
WEEHAWKEN, NJ — The Horn and Hardart Co said it reached agreement with holders of 75 pct of its 14 pct debentures on an exchange of the debentures for a combination of cash, common stock and a new issue of 7.5 pct convertible preferred stock of Horn and Hardart's direct marketing subsidiary, The Hanover Companies.
As a result of the agreement, it said North American Resources Ltd agreed that "a major condition to its obligations with respect to the previously reported $50 million rights offering to the company's shareholders has been satisfied."
North American Resources is Horn and Hardart's largest shareholder, and has agreed to commit up to $50 million to the offering.
The company expects to hold an annual meeting in July, at which it will seek shareholder approval of the rights offering and related transactions.
It said the exchange of the debentures and the rights offering will result in the retirement of a significant amount of long-term debt and an increase in its equity.
© 1992 Reuters Limited
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