Golden Books to restructure
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February 17, 1999: 3:06 p.m. ET
Troubled children's publisher in talks with creditors about overhaul
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NEW YORK (CNNfn) - Golden Books Family Entertainment Inc. said Wednesday it is negotiating a restructuring with its creditors to significantly reduce its long-term debt.
Under terms of the proposal, existing shareholders will surrender their stock for out-of-the-money warrants to purchase a small percentage of the new company stock.
Trade in Golden Books (GBFE) was halted by the NASD Wednesday after a volatile session the previous day. The stock price jumped 63 percent Tuesday from Friday's close of 1-1/2, then tanked 26 percent within two hours.
The stock was Nasdaq's most active issue Tuesday after the New York Times reported that Walt Disney Co. is considering a bid for the troubled children's publisher and entertainment company.
"The company has to improve its operations. They still have challenges in front of them," said Stephen Schoene of Miller, Tabak, Hirsch & Co.
"The question is, who is going to own the company and what is the capital structure going to be?" he added.
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Golden Books
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