Bowling firm looks at options AMF considering bankruptcy move NATIONAL COMPANIES

FROM STAFF AND WIRE REPORTS Nov 15, 2000

AMF Bowling Inc., the world's largest owner of bowling centers, said yesterday it is considering Chapter 11 bankruptcy as one option for restructuring its more than $1 billion debt load.

In its third-quarter earnings report, the Mechanicsville-based company said bankers approved a preliminary restructuring plan Oct. 15 that will serve as a "framework for negotiation" until the company develops a definitive plan for reducing its debt. The company said it has hired a financial consultant to review alternatives.

However, AMF said it still has enough cash to maintain normal operations in its bowling centers and bowling products business.

AMF, which owns and operates 527 bowling centers worldwide, including 408 in the United States, employs about 900 people in the Richmond area and 17,000 worldwide. The company manufactures bowling products at its plant in Hanover County.

AMF's financial results have been hurt by the debt it ran up during a buying spree between 1996 and mid-1998, when the company more than doubled its number of bowling centers. An economic crisis that swept Asian markets in 1998 also hurt AMF's bowling products business there.

In September, the company missed a $13.6 million interest payment due to some bondholders. AMF previously had announced that it would miss the payment on bonds known as subordinated notes as it worked to develop a restructuring plan for its creditors. Bankers agreed to waive AMF's financial targets for 2000, and the company agreed to reduce the total amount of money it can borrow this year.

The company's earnings report showed some improvement in its bowling centers business. Revenue jumped by 6 percent in the quarter. But its bowling products revenue dropped 30 percent from the same quarter last year, still hurt by sluggish sales in Asia.

The company reported a $57.1 million loss in the third quarter, compared with a loss of $109.5 FY 00FY 99

Rev./Sales B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7$162.1 mil.$182.8 mil. Net Inc. B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7-$57.1 mil.-$45.0 mil. Per Share B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7-$0.68-$0.59 9 monthsFY 00FY 99 Rev./Sales B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7$532.3 mil.$546.5 mil. Net Inc. B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7-$118.9 mil.-$117.8 mil. Per Share B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7B7-$1.42-$1.80 - John Reid Blackwell

http://www.timesdispatch.com/business/MGB6KONDKFC.html

-- Carl Jenkins (somewherepress@aol.com), November 15, 2000