Laserfiche WebLink
02251 _ 000008699 <br /> THE SOUTHLAND CORPORATION <br /> Dallas , Texas <br /> October 5 , 1990 <br /> O L ! I <br /> SAN JOAQUIN LOCAL HEALTH DIST1;NVIR0NTvl;<�'TL CCN TH <br /> P 0 Box 2009 PERMA f'."ICcS <br /> STOCKTON ,CA 95201 • <br /> Dear Valued Supplier: <br /> As you undoubtedly know, The Southland Corporation has been <br /> attempting to finalize a financial restructuring for the past <br /> several months . On September 26 , 1990, we announced that we had <br /> extended until October 22 a proposal-'.to our bondholders and <br /> preferred shareholders to exchange ' Id debt and preferred stock <br /> for a package of common stock, :.new. debt and cash. Upon <br /> consummation of these exchange offers , our long time business <br /> partners , Ito-Yokado Co. , Ltd. ' and Seven-Eleven Japan Co. , Ltd. <br /> will infuse $430 million into Southland for 70 percent of the <br /> common stock. While we have received tenders of a substantial <br /> majority of the outstanding debt , we.-have not yet achieved the <br /> required 95 percent acceptance 'rate. the parties involved have <br /> set . <br /> We also announced on September'`26 that we have submitted for <br /> SEC clearance an amendment to our k6structuring plan that <br /> solicits security-holder approval of ' a prepackaged plan of <br /> reorganization. This amendment will-. give Southland the option of <br /> filing the plan under Chapter 11 of :rhe Bankruptcy Code as a <br /> possible way to complete the proposed restructuring. This does <br /> not mean that we have filed for bankruptcy, nor have we committed <br /> to do so. The purpose of a prepackaged plan of reorganization is <br /> merely to assist us in completing our debt restructuring in court <br /> under Chapter 11 of the Bankruptcy Code in the event that we do <br /> not reach the required 95 percent acceptance rate in our.-exchange <br /> offers . <br /> Furthermore, if we do file the prepackaged plan, we will <br /> seek the necessary court approval to pay you, our supplier, in <br /> full, in the normal course of business for all matured and <br /> undisputed claims . However, payment of pre-petition claims will <br /> be limited to creditors who agree to continue to provide us with <br /> customary trade terms or who reinstate trade terms consistent <br /> with industry practices and with credit limits consistent with <br /> Southland' s historical buying patterns and levels . <br /> All of our efforts at this point are focused on completing <br /> our financial restructuring through our existing exchange offers . <br />