R.A.B. Holdings holding talks with bondholders on modifications, restructuring

By Jeff Pines

Washington, Feb. 12 - R.A.B. Holdings, Inc. said it is holding talks with its bondholders over the company's capital structure.

In its most recent 10-Q with the Securities and Exchange Commission, the company said its management believes these talks could yield debt modifications and restructurings that will improve the company's capitalization, cut its current cash interest requirements and extend the maturity of its debt.

R.A.B. Holdings noted its subsidiaries continue to be affected by the "instability of the supermarket industry."

It noted a number of grocery and wholesale distribution companies are no longer in business.

In October, the company reached an agreement with more than two thirds of the holders of its 10½% senior notes due 2005 to make an interest payment with payment in kind.

New York-based R.A.B. Holdings, through its Millbrook Distribution Services subsidiary, is a distributor of specialty foods, health and beauty care products and general merchandise to supermarkets and mass market retailers. It also carries its own private-label brands.

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