Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-04-10
Goldenberg' S Asks
Court Approval Of
Debt Proposals

The Goldenberg Co. depart
ment store operators yesterday
asked in a court petition for an
easier method Of meeting its
obligations.
The petition for arrangement
said the store is unable to pay
its debts as they mature" It
seeks to revise its present debt
structure to facilitate its BUSH
ness operations"
The petition, filed in the
U. S. District Court for the Dis
trict of Columbia, listed total
current assets Of $1,587.327 as
against total current liabilities Of
$1.076,4
Under the plan. which requires
the approval Of the majority of
creditors before 1t is confirmed
by the court, some / ,240 creditors
would be divided into classes.
Propose Class Setup.
It is proposed that class
creditors be paid outright, that
time for paying class 2 creditors
be extended with a reduction in
interest payments to not more
than 6 per cent. and that an
other class of creditors be paid
off in misunderstanding cor
porate debentureS. A reserve
fund would be set up to insure
that the debenture debt be re-
tired in five years at a rate of
20 per cent a year.
A press release authorized by
Alan Goldenberg. company presi-
dent. declared the company is
not insolvent but wishes to amor
tie its merchandise accounts
over a longer period.
The statement said unsettled
business conditions for the past
several months and a tightening
OF its credit left the company
with low cash position" Cash
on hand was estimated at
$17.040.
Would Continue Operation.
Although handicapped tenn
porarily by lack of working cap
ital, the officers and directors
feel confident that, under the
plan of deferred payments sug-
gested for the creditors, the BUSH
ness will be able to continue in
operation as it had in the past"
the company said.
The statement said the COM
pany has been engaged in the
operation of department stores
since 1895. The present corpora
ton was organized in 1882.
The company owns and oper-
ates three stores, with the main
one situated on K street be-
tween Seventh and Eighth
streets NV. The other stores
are at Benning road NE. and
the Shirlington shopping CEN
ter. Arlington, Va.
THE company employees an
average of $50 people and has
always enjoyed the confidence
OF the merchandising market
and the community during the
past half century of it's opera
TONS" the press release said.
Publicly Held Shares.
The statement said the COM
pany's preferred and common
stock is publicly held and the
shares are traded over the
Washington Stock Exchange.
The company stated that let
tiers are being sent to all stock
holders advising them of the
action being taken and "assur-
ing them that every step is
being taken to continue the
operation of the company"
The company said that. al
though operating economies will
be started Immediately. the en-
ployes are assured that "the
services of most of them" will
be required during the present
proceedings.
Mr.. Goldenberg told reporters
that business at the downtown
store is running behind that of
last year. but that the other
two stores are doing we'll.
He said he sees no appreciable
rise in business as a result of the
recent cut in excise taxes.
The petition was filed by the
law firm of Newmyer and Dress.