Because of a transmission problem, a Business story yesterday incorrectly reported the share of Southland Corp. that the founding Thompson family would retain in a reorganization and sale of the company. The family would keep 5 percent of the company. (RP 1/29/91)
DALLAS, JAN. 23 -- Southland Corp., the nation's largest operator of convenience stores, said late Wednesday that debt holders withdrew all objections to the proposed restructuring of the company, clearing the way for a new vote on the plan.
For the second time in four months, Southland will ask voting shareholders to approve a reorganization plan, designed to position the bankrupt parent of 7-Eleven stores for a Japanese-led takeover.
In October 1990, Southland presented a restructuring plan it contended had been "pre-approved by a majority of voting shareholders" to U.S. Bankruptcy Judge Harold Abramson.
But a number of dissident groups, representing various factions of disgruntled shareholders, raised objections.
Abramson agreed that an insufficient selection of the shareholders had been canvassed. Also, while allowing that the company had complied with Securities and Exchange Commission rules on gaining approval for reorganization, the judge said, "We're now in bankruptcy and I want to follow the bankruptcy code."
The original plan was dismissed in December 1990 and the company was instructed to obtain a wider listing of individual shareholders. Bankers and brokers were instructed by the court to furnish Southland with that information.
While the list of voters was being compiled, the company's re-drafted plan was thrashed out in court. Several arguments were presented by the dissident groups, each attempting to have the court include their point of interest or demanding deletions.
Many objections hinged on the disclosure of benefits to be received by members of the Thompson family, Southland's founders.
Should the $430 million buyout by Japanese investors, Ito-Yokado Group and 7-Eleven Japan Co., go through, the Thompsons will retain 30 percent of the company through a $60 million stock and benefits package.
Southland said the deadline for voting on the plan expires Feb. 16.