Court Approves First-Day Motions for Borden Chemicals and Plastics Operating Limited Partnership.

Business Editors

GEISMAR, La.--(BUSINESS WIRE)--April 6, 2001

Interim Order Entered for Debtor-in-Possession Financing of Up to

Approximately $100 Million

Borden Chemicals and Plastics Operating Limited Partnership (BCP) announced today that it had received approval from the United States Bankruptcy Court for the District of Delaware of various first-day motions presented by BCP with its Chapter 11 filing April 3, 2001, allowing BCP to continue to pay salaries, wages, and other benefits to employees and to honor prepetition obligations to employees.

First-day orders were requested of the court so that BCP, a producer of polyvinyl chloride (PVC) resins, could continue operations with as little disruption and loss of productivity as possible and maintain the confidence and support of customers, employees, suppliers and service providers. The company also sought to obtain postpetition financing and establish procedures for an orderly administration of the chapter 11 proceedings.

The court has entered an interim order granting the company's request of a $100 million debtor-in-possession (DIP) credit facility, which will provide up to approximately $20 million of new availability, to be provided by a group of lenders led by Fleet Capital Corporation. Subject to certain terms and conditions, BCP anticipates that the DIP financing would be used for employee compensation, materials and services from vendors, ongoing operations and other working-capital needs. The court has scheduled a hearing on April 18, 2001, for final approval of the request.

"With interim financing in place, vendors, customers and employees should feel confident about doing business with BCP. We remain a focused PVC player in a market that we believe will recover and have long-term growth prospects," said Mark J. Schneider, president and chief executive officer, BCP Management, Inc. (BCPM), the general partner of BCP.

BCP and its subsidiary, BCP Finance Corporation, filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on April 3, 2001.

BCPM and Borden Chemicals and Plastics Limited Partnership (BCPLP), the limited partner of BCP, were not included in the April 3 Chapter 11 filings. (Two other separate and distinct entities, Borden, Inc., and its subsidiary, Borden Chemical, Inc., are not related to the filings.)

BCP produces PVC resins at its facilities in Geismar, La., also the site of its headquarters. BCP 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. Our actual results may be materially different from those expressed or implied by such statements. While BCPM 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 Chemicals."