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Published on 6/29/2004 in the Prospect News Distressed Debt Daily.

R.A.B. Holdings says 98% of subsidiary's noteholders, 95% of parent's support restructuring

New York, June 29 - R.A.B. Holdings, Inc. said holders of 98% of the 10½% senior notes issued by its R.A.B. Enterprises, Inc. have agreed in principal to its planned debt restructuring and holders of 95% of its own 6% senior notes and 13% senior notes.

While the company is attempting to contact the remaining investors with the goal of obtaining 100% participation, the New York-based distributor of food and health and beauty products and manufacturer of specialty foods said it plans to complete the restructuring whether they agree or not.

Under the proposed restructuring, noteholders will receive new 9% notes due May 2011, 11% series C preferred stock due 2013 and common stock.

For each $1,000 principal amount of 10½% notes, holders will receive $610.00 principal amount of 9% notes, $365.00 liquidation value of preferreds and shares of common stock.

For each $1,000 principal amount of 13% notes and 6% notes, holders will receive $55.00 liquidation value of preferreds and shares of common stock.

The restructuring will not involve the company's operating subsidiaries, Millbrook Distribution Services Inc. and The B. Manischewitz Co., LLC or affect timely payment of accounts payable and other operating liabilities.

R.A.B Holdings announced on April 26 it had reached an agreement in principle on the restructuring with a majority of the holders of the senior notes.


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