NEW YORK — The Leslie Fay Cos. expects to increase its sales to $855 million in 1996 from $665 million expected this year with profits growing proportionately.
The forecasts were given to the Leslie Fay creditors’ committee at a closed meeting Tuesday as part of the company’s business plan, according to sources.
For 1994, Leslie Fay is projecting a swing of $54 million in earnings before interest, taxes, depreciation and amortization (EBITDA) to $28 million from a negative $26 million in 1993. In 1995, EBITDA is projected at $48 million, and in 1996, it is envisioned at $68 million.
The business plan foresees no further disposition of major assets and is a preliminary first step in working out a Chapter 11 plan of reorganization.
According to sources, Leslie Fay plans to emerge from Chapter 11 in the first quarter of next year, but committee members are seeking a quicker exit.
The committee is now composed almost entirely of speculators who have purchased claims against the Leslie Fay Cos. for between 70 and 75 cents on the dollar. It is in their best interest to get a quick payback since the return on investment is based on the amount of time elapsed as well as on the size of the dollar return on the claims.
Among the so-called “vulture” funds on the committee are Balfour Investments, Fidelity Investments of Boston and Whippoorwill of White Plains, N.Y. Also represented on the committee is the ILGWU.
A Leslie Fay spokesman declined comment.