wsj_0173.xml

WSJ 891102 891102 -0017 WSJ 891102 -0017 = 891102
= 891102
891102-0017 . 891102-0017 . Business Brief -- Coleco Industries Inc. : @ Ailing Toy Maker Submits @ Chapter 11 Revamp Plan Business Brief -- Coleco Industries Inc. : @ Ailing Toy Maker Submits @ Chapter 11 Revamp Plan 11/02/89 11/02/89
11/02/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) CLO CLO BANKRUPTCIES ( BCY ) BANKRUPTCIES ( BCY ) Coleco Industries Inc. , a once high-flying toy maker whose stock peaked at $ 65 a share in the early 1980s , filed a Chapter 11 reorganization plan that provides just 1.125 cents a share for common stockholders . Under the plan , unsecured creditors , who are owed about $ 430 million , would receive about $ 92 million , or 21 cents for each dollar they are owed . In addition , they will receive stock in the reorganized company , which will be named Ranger Industries Inc . After these payments , about $ 225,000 will be available for the 20 million common shares outstanding . The Avon , Conn. , company 's stock hit a high in 1983 after it unveiled its Adam home computer , but the product was plagued with glitches and the company 's fortunes plunged . But Coleco bounced back with the introduction of the Cabbage Patch dolls , whose sales hit $ 600 million in 1985 . But as the craze died , Coleco failed to come up with another winner and filed for bankruptcy-law protection in July 1988 . The plan was filed jointly with unsecured creditors in federal bankruptcy court in New York and must be approved by the court .