Here is a posting on the UPI message wire from Luis Nogales, dated April 4, 1986, concerning the company's reorganization plan under bankruptcy protection. This action came about three months after Mexican publisher Mario Vazquez Rana won the right to acquire UPI, but about two months before he actually took control of the company.)
303m ccccx --- Please Post --- April 4, 1986 To: All Staff From: Luis Nogales
UPI today filed a petition with the bankruptcy court seeking leave to file a formal plan of reorganization. Filing the plan is a decisive step toward completing Chapter 11 proceedings.
The plan was developed in concert with, and has the full support of, the creditors committee, the Wire Service Guild and New UPI. UPI filed the petition with letters of endorsement from the Guild and the committee, who will co-sign the plan.
Media News Corp. has objected to the filing on grounds substantially the same as advanced earlier in district and bankruptcy court proceedings. Judge Bason has scheduled a hearing on the matter April 8. We expect the objection will be quickly resolved and that we will go forward in a timely manner.
In that case, the plan will be officially entered in the court next week and a hearing will be called, after which the plan and accompanying disclosure statement will be mailed to creditors for a vote. The court will set a deadline for return of ballots, and conduct a hearing to confirm results. We expect the plan will be approved at that hearing, which could take place at the end of June. UPI's discharge from bankruptcy and the formal transfer of ownership then will be completed.
The plan is based on the acquisition of UPI by New UPI, and calls for a minimum investment in UPI of $15 million over the next two years. It provides full, prompt payment for present and former employees for unpaid salaries, wages, severance, non-priority benefit claims and reimbursement of expenses.
It is significant that the plan has been jointly endorsed by UPI, the creditors committee and the Wire Service Guild. Reaching this point of consensus has entailed a great deal of work and cooperation, and it presents a strong case for confirmation. UPI's reorganization will result in a much stronger company.
We anticipate continuing the excellent progress UPI has made in its reorganization, and will keep you informed of further developments.
73s nogales-wa ccccqqe upi 04-04-86 02:07 pcs