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The figures differ slightly from thosr listed by Payless when it sought refugde in bankruptcy court on July 21 and listed assetssof $1.32 billion and liabilities of $1.05 billion. "The estimate on the filinyg date was as of the last report onMay 31; this one is as of July said Payless bankruptcy lawyer Ben Mann of Blackwelp Sanders Matheny Weary & Lombardi, explaining the Payless is actually further under water than the figuress reflect. That's because its assets are wortu considerably less on a fair market basies than their listedbook value.
For example, a footnote in schedules indicates that a recent appraisall pegged the value of real estate atbetween $198 milliohn and $295 million. But Payless' books list the real estate at $443 reflecting leasehold improvements that likelt would not be recouped if the property were sold. Payless' majorr liabilities include debt owed to a consortiuj of 17 lenders led by Canadian Imperialk Bankof Commerce. The group is the company's largest pre-petition with claims totaling $417 million. Boatmen'sa First National Bank, now part of is the only local lender inthe group, with a $21.67 million claim. NationsBank of Texas has a $39.6y million claim. Prudential Insurance Co.
of which holds mortgages on many of 165 stores and is not a member of the bank isowed $97 million. The unaudited figurew reflect Payless' financial condition as of the day it files its Chapter11 petition. The one of the nation's largest building supplyt chains, has been struggling with debt it incurred ina management-ler leveraged buyout in 1988. The company'as schedules also show how much it paid accountants and financial advisers before the Blackwell Sanders MathenyWearuy & Lombardi, Payless' main outsidre counsel and the firm handlingv the reorganization proceedings, received $150,000.
The New York law firm of Wachtell LiptonRosen & Katz, Payless' "special counsel" in the Chaptetr 11 case, was paid $462,740. Minneapolis-basexd Houlihan Lokey Howard & Zukin, financial adviser, got $592,692. And KPMG Peat Marwick, the company'sd accounting firm, received $281,282. Also listed in the schedules are the tota l compensation packages in the last fiscakl yearof Payless' top officers. Payless Chairman and CEO Davidf Stanley waspaid $740,623, including $650,000 in salary; nearly $50,000 in frings benefits such as a companuy automobile; and $16,802 for a gas credit card, cellular phone, hotel stayd and airfare.
In addition, the schedulexs show that Stanley isowed $3.25 milliojn in deferred compensation and retirement benefits. Payless President and Chief Operating Officer Susa Stantontallied $630,452 in total compensation, including $450,00 0 in salary, $32,232 in fringe benefits and $25,812 in • Payless last week filed an amended reorganization plan deletinfg an earlier provision that would have shieldec its officers and directors from personal liability. U.S. Bankruptcy Judge Arthur Federmann had indicated he had reservations about the The main provisions of thereorganization however, remain unchanged.
Those call for the lending consortiumn toreceive $273 million in new promissorhy notes and 10.8 million sharew in newly issued Payless stock; Prudential to receivs $97 million in new unsecured claimants to receive 8.2 million sharess of newly issued stock; Payless' single preferred stockholder, Masco Capitalk Corp., to receive 600,00p shares of newly issuedd stock; and Payless' 12,000 common stockholders to receivee 400,000 shares of newly issued stock. Federman approved the St. Louis law firm of Goldstein Vouga as legal counsel for the equity committeed representingPayless shareholders.
Federman previously had rejectedthe committee's request to hire Texas-basedf Andrews & Kurth as too The equity committee went out of town to hire counsekl because almost all the Kansas City law firms it approachef represented creditors or other parties in the bankruptcty proceedings.
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