[Federal Register Volume 62, Number 151 (Wednesday, August 6, 1997)]
[Notices]
[Page 42274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20831]
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SECURITIES AND EXCHANGE COMMISSION
[File No. 500-1]
Discovery Zone, Inc., Order of Suspension of Trading
August 1, 1997.
It appears to the Securities and Exchange Commission that there is
a lack of adequate information concerning the cancelled common stock of
Discovery Zone, Inc. (``Discovery''), which emerged from Chapter 11
bankruptcy protection on July 29, 1997. On July 18, 1997, the Third
Amended Joint Plan of Reorganization (``the Plan'') was confirmed by
the United States Bankruptcy Court for the District of Delaware. On
July 29, 1997, the Plan became effective. Pursuant to the Plan, all of
the common stock, common stock options and partnership interests
existing as of the date of the bankruptcy petition, March 25, 1996,
shall be cancelled, annulled and extinguished as of the effective date
of the Plan, July 29, 1997. Accordingly, the common stock, common stock
options and partnership interests cancelled on July 29, 1997 no longer
represent an economic or beneficial interest in Discovery.
Despite press releases and notification by the company that
Discovery's common stock was cancelled and no longer represented any
economic or beneficial value, the daily trading volume of Discovery's
common stock was approximately six million shares and four million
shares for July 30, 1997 and July 31, 1997, respectively, the two days
following the cancellation of the common stock. Trading in Discovery's
common stock was continuing today, August 1, 1997.
The Commission is of the opinion that the public interest and the
protection of investors require a suspension of trading in Discovery's
common stock, common stock options and partnership interests that were
cancelled pursuant to the Plan. This order of suspension of trading
does not affect any securities issued by Discovery pursuant to the
Plan.
Therefore, it is ordered, pursuant to Section 12(k) of the
Securities Exchange Act of 1934, that trading in the above company is
suspended for the period from 3:30 p.m. (EDT), August 1, 1997, through
3:29 p.m. (EDT), on August 15, 1997.
By the Commission.
Jonathan G. Katz,
Secretary.
[FR Doc. 97-20831 Filed 8-4-97; 12:50 pm]
BILLING CODE 8010-01-M
