New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-07-15
GREENHUT WINS
CREDITORS;PLANS
TO START ANEW
Independents Favor 27la
Cents Cash Plan-BOnd-
holders Satisfied.
CARE FOR EMPLOYEES
AIDED SETTLEMENT
Plight of 5000 Store Workers,
Unable to Get New Places,
Influenced Trustees.

UndDle 10 YET NEW fldSco,
Influenced Trustees.
CAPTAIN J. b. Greenhut is now able
to 90 ahead with the reorganization OF
his store. Attorneys for the creditors
committees yesterday announced the
details of the reorganization plan and
admitted that the majority of their eli
ents, numbering more than 5000 cred
itors. were willing to accept Captain
Greenhut's offer Of 27i2 cents on the
dollar. The attorneys for the bond
holders representing more than $1,000
600 of bonds are also willing to let him
90 ahead.
Not least in the determination Of the
creditors. bondholders and trustees to
permit Greenhut to continue the bust
ness has been their anxiety for what
would hapren 70 the 5000 men and
women employees Of the bankrupt firm.
They realize that with conditions OF
employment such as exist now the en-,
ploves would find ii difficult 10 ma
new Jobs.
The trustees in bankruptcy vester-
day made public letter from Captain
Greenhut which said:
Il am prepared to make such ar
ranCements that those merchandise
creditors who do not desire to retain
the shares of stock offered may. by &C
cepting the all-stock proposition. dis
pose of the shares so allotted 70 them
at a purchase price equal TO 2It2 per
cent of the principal of their claims.
Creditors taking the all-stOck PROPOSE
ton are % have the right at any time
up TO February I. 1916, to dispose of
their shares and 70 receive therefor
27i2 per cent Of the principal OF their
claims and full ARRANGEMENTS are to be
made to take over any stock so OIL
fered.
"In addition. ! am prepared to make
like arrangements for such creditors
as accept the part cash and part stock
proposition. If they do not desire 70
retain the shares so acquired they NAV
dispose of same at any time after Jan
uary l. 1916, and on or before Febru-
AIRY 1. 1916, for sum equal TO 10 per
cent Of the principal of their claims IN
cash, so that in such event they will
Ultimately receive total cash payment
Of Pr per cent Of the principal o.
their claims"
eve are pleas 3D." answered the
trustees, that you have concluded to
afford an opportunity WHEREBY the
merchandise creditors Of the >. b.
Greenhut Company may dispose Of the
shares of stock offered to theT under
the reorganization plan for cash. We
l L.
tents of your communication o the
committees acting for the various in
terests.
Considered Employees Distress.
1--WE should contemplate with sor-
row a situation which would force the
$500 employees of The organization I'M
der the rather unfavoraDle conditions
Of to-day 70 seek new sources o: live
lihood. We hope thai your offer may
afford a solution Of the entire sltua-
ton"
The original proposal Of the Green
huts for reorganization contained two
alternatives for the merchandise cred
itors:
First-Fifty cents IN first preferred
stock, % cents n second preferred
and 25 cents in common stock OF the
proposed new corporation.
Second Twelve and one-half cents
in cash, % cents in first preferred
stock, % cents in second preferred
stock and 37l2 cents in common stock
of such proposed new corporation.
In the formal statement issued yes
terday by the independent creditors
committee the opposition of he com
mittee to either Of the TWO plans out
lined above was voiced.
But the third position, made
later, that the creditors receive 2712
cents on the dollar in cash, We con-
sidered a fair realization value OF
both the ordinary business assets Of
the bankrupt and the claims amount
ing to 81 408 900 mentioned in or let
ter of June D." the Independents said.
All Must Accept New Plan.
In its letter 10 the independent
creditors the committee mentions the
fact that Greenhu, overestlmated
statement made to mercantile agency
by about 100000.
There may be possible collateral
claims Of individual creditors who
sold. relying on the mel camille agency
reports. 50 far as We have bcen able
TO ascertain, there arr out lew cIeu-
itors who stand in this position. Ac-
ceptance f any Of these proposals
outlined above by any such creditor
might be regarded as wiping out his
special collateral claim of that char
acter as we'll as his claim against
the bankrupt.
"On the other hand, II is the desire
of the Groenhuts TO be :ree from fur
ther LITIGATION, and, unless the Z712-
cent offer is accepted by substantially
all the creditors, 1t is likely to be
withdrawn. We reiterate that the
sum offered represents as large an
amount as the general creditors would
get through liquidation "
Andrew y. Nielsen, an expert &C
countant; Augustus Phillips, formerly
of r. II. Macy & Co., and William l..
DO Borst. a real estate expert, were