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                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, January 31, 1992                   TAG: 9201310441
SECTION: BUSINESS                    PAGE: A-5   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

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ZELL/CHILMARK FUND OFFERS REVCO OPTION

Revco D.S. Inc., a Twinsburg, Ohio, company operating Revco drug stores in Roanoke, said Thursday that Chicago-based Zell/Chilmark Fund L.P. has agreed to provide up to $250 million in cash as an alternative to four classes of creditors scheduled to receive common stock under terms of the company's bankruptcy reorganization plan.

Boake A. Sells, Revco chairman and chief executive officer, said the choice for creditors should facilitate the confirmation process.

Revco, which has operated under protection of Chapter 11 of the Federal Bankruptcy Code since mid-1988, filed a plan of reorganization with the U.S. Bankruptcy Court in June 1991.

The amended plan will say that Zell/Chilmark will make available $7.47 per share as a cash option to holders of Revco's three classes of subordinated notes and holders of general unsecured claims. They would get the funds in lieu of stock in a reorganized Revco. - Staff report

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