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CPT BOARD APPROVES THE ACQUISITION OF ALL OF COMMON STOCK OF BRIGHTON ELECTRIC STEEL CASTING COMPANY

 CPT BOARD APPROVES THE ACQUISITION OF ALL OF COMMON STOCK
 OF BRIGHTON ELECTRIC STEEL CASTING COMPANY
 EDEN PRAIRIE, Minn., Dec. 13 /PRNewswire/ -- CPT Holdings, Inc. announced today that its board of directors has approved in principal the acquisition by the company from Sunderland Industrial Holdings Corporation all of the common stock of Brighton Electric Steel Casting Company in exchange for 5,780,480 of the company's class A common shares which will amount to 40 percent of the company's total outstanding class A and class B shares combined. In addition, the sellers will receive $800,000 of proceeds from a loan to be undertaken by Brighton plus $500,000 of debt obligations from Brighton in the form of a promissory note and voting preferred stock of Brighton.
 Brighton is a manufacturer of disposable metal castings used primarily in the production of seamless steel tubing for use in oil production and automotive industries.
 The closing is expected to be complete prior to the end of this calendar year and, upon completion, Sunderland will elect two of the three positions on the company's board of directors.
 Upon completion of the transaction, the class B shareholders will be issued additional shares on a 2-for-1 basis on a record date to be announced to cause such shareholders to retain a 20 percent equity position in the company as provided in the company's plan of reorganization approved in its Chapter 11 bankruptcy proceeding.
 Final documents regarding the transaction have not been executed at this time.
 -0- 12/13/91
 /CONTACT: David Priebe of CPT, 612-949-1728/ CO: CPT; Brighton Electric Steel Casting Company ST: Minnesota IN: SU:


KH -- MN020 -- 2553 12/13/91 17:22 EST
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Publication:PR Newswire
Date:Dec 13, 1991
Words:280
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