Golden Books is putting the final touches on its reorganization plan and does not expect to emerge from Chapter 11 for at least another month, Golden's v-p and general counsel Phillip Galanes told PW. While the court approved Golden's plan earlier this year (News, Sept. 6), final agreements still need to be reached with various parties before the plan can be consummated. Golden originally thought it would be out of bankruptcy by early October.
Meanwhile, according to operating statements filed with the bankruptcy court, Golden's finances seem to be improving slowly. For the third quarter ended September 25, 1999, the company's net loss was cut to $9.4 million, compared to $18.9 million in last year's third quarter. The documents show a steady increase in monthly sales, with revenues increasing from $9.8 million in July to $15.4 million in August and to $17.2 million in September.
