The Company's current financial situation necessitates an injection of new capital and some restructuring of the Board. The Company Plans to hold a rights issue to allow shareholders of record on the 16th January, 1997 to purchase 1 new share at $3.00 for every share held. LOM as underwriter will ensure that this rights issue is fully subscribed and thus the Company will receive an amount sufficient to enable the Company to settle its obligations with its trade creditors and significantly reduce its bank debt.
The Company plans to hold a Special General Meeting on 31st January, 1997 where shareholders will be asked to approve the rights issue and elect an expanded Board of Directors. Once the Special General Meeting has taken place the Company intends to submit a request to the Bermuda Stock Exchange for a resumption of trading in the Company's existing shares and new shares.
Crayton Greene
Chief Executive Officer
Kentucky Fried Chicken (Bermuda) Ltd.