New Name, Reduced Debt Voted for Campeau Corp.

Shareholders and creditors of Campeau Corp. approved a reorganization plan Tuesday that will give the company a new name and narrow its debt.

All six groups required to vote on the plan approved it, although it will substantially reduce the value of their holdings.

The meetings were held to gain approval of changing the name--from Campeau Corp. to Camdev Corp.--and reducing the debt caused by the multibillion-dollar takeovers of Allied and Federated department stores in the 1980s.

Paying the interest on the debt crippled Campeau, and the two retail chains were forced to seek bankruptcy protection in January, 1990. All but technical details have yet to be worked out in that restructuring plan, and the two chains are expected to leave bankruptcy court next month.

Under the reorganization plan, holders of senior unsecured debt, preferred and common shares receive new common shares.

Olympia and York Developments, which is owed about $540 million, will own about 60% of the new entity.

Robert Campeau, who was ousted as chairman of Campeau Corp. in August, 1990, after he lost most of his stock in the company to a major creditor in January, voted against the plan.