Borden Chemicals and Plastics Operating Limited Partnership Receives Final Court Approval for Use of Up to $100 Million in Debtor-In-Possession Financing.

Business Editors

GEISMAR, La.--(BUSINESS WIRE)--July 13, 2001

Borden Chemicals and Plastics Operating Limited Partnership (BCP) announced today it has received final approval from the U.S. Bankruptcy Court for the District of Delaware of a debtor-in-possession credit facility (DIP facility) from a group of lenders led by Fleet Capital Corporation.

The approved DIP facility will provide up to $100 million in credit, including approximately $20 million of new availability. The DIP facility is used for materials and services from vendors, ongoing operations, including salaries and certain benefits for the employees who manage and operate BCP, and other working capital needs.

"We are pleased to have received final approval of the DIP credit facility," said Mark J. Schneider, president and chief executive officer, BCP Management, Inc., the general partner of BCP. "The approved DIP facility incorporates beneficial modifications to the terms initially proposed. These modifications negotiated with the lenders will provide management with greater flexibility in running the business as we pursue the restructuring process. Gaining this approval is evidence of the productive working relationship we have built with the lender group and the Creditors' Committee."

As previously announced, on April 3, 2001, BCP and its subsidiary, BCP Finance Corporation, filed voluntary petitions for protection under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. BCP Management, Inc., general partner of BCP, and Borden Chemicals and Plastics Limited Partnership, BCP's sole limited partner, were not included in the filings. (Two other separate and distinct entities, Borden, Inc., and its subsidiary, Borden Chemical, Inc., are not related to the filings.) The court previously entered an interim order granting the company's request of a $100-million DIP credit facility, including up to approximately $20 million of new availability.

"We are grateful for the support we are receiving from our banks and other creditors, suppliers, and the employees who manage and operate BCP," said Schneider. "Their support has enabled BCP to continue business as usual and at the same time to pursue strategic initiatives to strengthen and restructure the business. We think it is particularly significant that the bank group led by Fleet Capital Corporation, our primary lenders since March 2000, has continued to finance us. Although the PVC market remains difficult, we have strengthened BCP's business in many ways since the beginning of the year." These include:

-- Securing of assurances from many of the company's vendors for the continued
supply of goods and services necessary for its daily operations;

-- Continuing to meet customer requirements, including not missing or delaying
any product shipments;

-- Continuation of normal operations in all three of the company's facilities;

-- Thorough communication with all stakeholders, including the employees who
manage and operate the company;

-- Reduction of debt under the DIP facility;

-- Reduction of operating costs, especially as a result of decreases in the
price of natural gas;

-- Continuation of actions for cutting costs, streamlining operations and
improving revenues; and

-- Advancement of efforts in connection with various strategic alternatives,
including, but not limited to, a possible sale of assets.

Separately, the company reported that it has filed a motion with the Court for an order extending the period during which it has the exclusive right to file and advance a plan of reorganization by six months, through February 1, 2002.

BCP produces PVC resins at its facilities in Geismar, La., also the site of its headquarters and has additional PVC operations in Addis, La., and Illiopolis, Ill.

This press release includes forward-looking statements subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Our use of the words "outlook," "intends," "believes," "anticipates," "estimate" and similar words are intended to identify these statements as forward-looking. These forward-looking statements represent our current judgment on what the future holds and are based on a number of assumptions and forecasts. Actual results may be materially different from those expressed or implied by such statements. While BCP Management believes them to be reasonable, a number of important factors could cause actual results to differ materially from those projected. These factors include relatively small changes in PVC resin prices or demand; changes in domestic capacity; changes in raw material and natural gas costs; increased operating costs; loss of business from major customers; availability of post petition financing; negative market and credit impact from the Chapter 11 filing; unanticipated expenses; substantial changes in financial markets; labor unrest; foreign competition; major equipment failure; unanticipated results in pending legal proceedings; and other factors.

Note to Editors: Borden Chemicals and Plastics Operating Limited Partnership (BCP) is a separate and distinct entity from Borden, Inc., and its subsidiary, Borden Chemical, Inc. Please refer to Borden Chemicals and Plastics Operating Limited Partnership as "BCP" or "Borden Chemicals and Plastics," not as "Borden" or "Borden Chemical."