OTHER NEWS - July 31, 1991

Carter Hawley Creditors Seek to File Suit: The creditors committee in Carter Hawley Hale Stores’ bankruptcy case has filed a sealed motion seeking court approval to sue for damages stemming from the retailer’s 1987 anti-takeover reorganization, according to sources familiar with the bankruptcy proceedings. The sources said the panel wants permission to sue, among others, General Cinema and its Neiman Marcus Group unit. The committee contends that Carter Hawley was crippled financially by the 1987 reorganization and that it failed to receive fair compensation when it spun off the Neiman Marcus Group stores to General Cinema as part of the restructuring. A spokesman for General Cinema said the firm is confident that it had no liability in the overhaul. Separately, a special committee of Carter Hawley outside directors is investigating whether the company itself should seek damages resulting from the overhaul.