The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-15
NEW OFFER MADE
BY CAPT. GREENHUT
Proposes TO Give Creditors a
Return Of27 1-2 Per Cent.
of Their Claims.
TO KEEP 5000 AT WORK

Alfred a. Cook. one Of the Greenhut
trustees. made public yesterday the new
reorganization offer OF Capt. j. Is.
Grccnhut, made. he says, 10 avoid throw
Ing out of employment 5000 men and
boys and girls. Capt. Gicenhut
offers the merchandise creditors n return
Of 27h per cent. of their claims en-
tlrely in stock of the proposed reorgan-
ICED enterprise or part cash and part
stock.
The Creditors Protective Committee
md the Independent Creditors Com
mIttee wrote yesterday to all creditors
recommending the acceptance OF the
plan, and the trustees and Cornelius w.
wickersham attorney for the Monmouth
Securities hope for Its adop-
tion and a final settlement OF all dini-
culties.
Referee Peter Is. Olney On Tuesday
will hear arguments on the proposed
decree of sale of the Greenhut assets.
Including the Sixth avenue stores ana
the warehouse property. At that TIME
Morris J. Hirsch, representing s2'o,oVo
in second mortgage bonds; a creditor
holding n sl,4OO claim and W. l.. Cayler.
represent!ng the Frank Cooper fanilys
claims, will present objections TO the
form in which tho decree OF sale was
drawn. Briefs will be drawn to-day.
The new reorganization plan Is EN-
bodied in a letter from Capt. Greenhut
10 the trustees. in which he expresses
n desire to pcrpetuate the ORGANIZATION
md keep 5000 men and women, boys
and girls In employment.
az am prepared" the letter says, TO
make such arrangements that mer-
chandise creditors not wishing to retain
the shares Of stock offered in the first
plan may. by accepting the all stock
proposition, dispose of the shares al
lotted at a purchase price u 10 2''2
pcr cent. of the principal OF their claims.
They will have the right ut any time up
to February !, 1916, to dispose OF their
shares for 27h per cent. OF the prln-
cipal OF their claims and arrangement
will be made to take over Sucn STOCK.
"In addition. I am prepared to arrange
that creditors who accept the part cash
and part stock plan. II they do not
desire to retain their shares. may dis-
pose of them after January |, 1916, ana
on or before February !, 1916, Tor 10
per cent. of the principal of their claims
In cash, so that. including the l2LT per
cent. cash payment already offered 'n'y
will ultimately receive "A total cfsh
~ Va
nal of their claims.
1.-THE foregoing offer is of course con-
ditioned upon the plan Of reorganization
being carried through and with the con-
sent of a sufficient number OF creditors
to make II a success
The creditors committees agree In
recommending the acceptance OF the
efYer. The protective committee believes
the creditors will realize a larger
amount by reorganization than by
liquidation and litigation and the IN
dependent committee regards the of1er
as a reasonable and fair settlement OF
the claim of the general creditors
Mr.. Olney appointed three appraisers
yesterday to begin their valuation OF
the Greenhut property ut once. Will
ham L. DE Borst will appraise the rea'
estate and Andrew y. Nielsen and Au-
gust Phillips the merchandise and other
assets. The two last named We're recon-
mended by the trustees.