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BULK MATERIALS, INC. FILES REORGANIZATION PLAN; EXPECTED TO EMERGE FROM CHAPTER 11 BY LATE WINTER, EARLY SPRING

 CLEVELAND, Jan. 6 /PRNewswire/ -- Bulk Materials, Inc. (BMI) has announced it has filed its reorganization plan with the Bankruptcy Court. P. Elliott Burnside, president and chief executive officer, stated the plan strengthens BMI's balance sheet and should enable the liquid and dry bulk commodities transporter to emerge soon from Chapter 11 bankruptcy protection.
 The filing was made Dec. 30 in U.S. Bankruptcy Court for the Southern District of New York. BMI expects to emerge from bankruptcy in late March or early April, Burnside said.
 BMI will be the largest trucking firm to emerge from Chapter 11 protection since the industry was deregulated in 1980. The company filed for bankruptcy protection on Aug. 30, 1991.
 BMI reached agreement in principle with its creditors' committee in November on the plan it filed with the court last week. The plan creates equity for creditors and note holders.
 "The committee's unanimous approval of the reorganization plan was a very important step," Burnside said. "It provided the impetus for us to file our plan with the court, and it enabled us to start working with lenders toward financing after the company's emergence from Chapter 11."
 Added Burnside, "That work is now ongoing; we expect to emerge with very strong financial support at the time the court approves the plan. We have continued to enjoy the overwhelming support and confidence of our customers during the process, and we expect to expand this base of support as we emerge."
 Cleveland-based BMI is one of the nation's safest and largest over- the-road transporters of liquid and dry bulk commodities. It operates 76 terminals in 22 states and employs 2,025 people.
 BMI is a privately held company, made up of 13 subsidiaries. It had revenue of $185 million for the fiscal year ended Sept. 30, 1992, Burnside said.
 Under its plan of reorganization, subordinated note holders will receive common stock in BMI, valued at $11 million, against some $43 million in pre-petition debt.
 Most will go to the Equitable Life Assurance Society of the United States; Equitable Deal Flow Fund, L.P.; and Carl Marks Levered Equities (U.S.), L.P.
 Trade and general unsecured creditors will receive preferred stock, valued at $4.5 million, against some $25 million in pre-petition debt.
 The bulk of this will go to Reliance National; Goodyear Tire & Rubber Co.; Allwaste Tank Cleaning; LDI Corp., and other general unsecured creditors.
 "BMI will file a disclosure statement with the Court in the next few days," Burnside said. "Creditors will then have a period in which to comment on the statement, following which the company expects the Court to approve the plan."
 It then remains for the creditors to vote and the Court to approve BMI's emergence from Chapter 11.
 BMI's principal markets are in the Midwest, Southeast and Northeast. The company is made up of the following groups and subsidiaries:
 FLEET TRANSPORT GROUP -- Fleet Transport Company, Inc.; and Bulk Storage, Inc.
 REFINERS TRANSPORT GROUP -- Refiners Transport & Terminal Corp.; Ray Molder, Inc.; Ray Molder Carrier Corp.; Baywood Express, Inc.; and Bulk Services, Inc.
 CUSTOMIZED TRANSPORT GROUP -- Best Transport, Inc.; Mitchell Transport, Inc.; Cryogenic Carriers, Inc.; Gypsum Haulage, Inc.; Bulk Leasing, Inc.; and Northern Ohio Materials, Inc.
 -0- 1/6/93
 /CONTACT: David Eden of William Silverman and Company, 216-696-7750, for Bulk Materials, Inc./


CO: Bulk Materials, Inc. ST: Ohio IN: TRN SU: BCY

KK -- CL005 -- 2124 01/06/93 10:35 EST
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Date:Jan 6, 1993
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