L.A. GEAR FILES FOR REORGANIZATION BUT DETAILS SKETCHY
L.A. Gear has filed for "reorganization under Chapter
11," according to James Peltz of the L.A. TIMES. The
company made the filing "after reaching a restructuring pact
with a group representing holders" of $50M of L.A. Gear
bonds. Last October, PCH Investments acquired a 42% stake
in the company. The new restructuring "calls for, among
other things, eliminating L.A. Gear's existing common stock"
on the NASDAQ. Under the proposed overhaul, "newly created
shares of L.A. Gear preferred stock -- which would be
convertible into common shares -- would be distributed to
PCH Investments, the bondholders and other creditors. It
"wasn't immediately disclosed how much of L.A. Gear each
group will own" (James Peltz, L.A. TIMES, 1/14).