LSB INDUSTRIES, INC. ANNOUNCES AGREEMENT WITH RTC
LSB INDUSTRIES, INC. ANNOUNCES AGREEMENT WITH RTC OKLAHOMA CITY, Sept. 29 /PRNewswire/ -- LSB Industries, Inc.
(AMEX: LSB) today announced that its subsidiary, Equity Bank for Savings, F.A., has reached an agreement in principal with the RTC wherein the RTC will pay approximately $14 million to Equity to terminate the assistance agreement that was entered into when LSB acquired Equity in 1988.
The termination will eliminate RTC's coverage on approximately $45 million of assets owned by Equity. In addition to the payment, as part of the settlement, the RTC has agreed to cancel Equity's obligations under the assistance agreement, including Equity's obligation to pay it the first $1 million earnings as defined, to cancel Equity's obligation to pay RTC 10 percent of Equity's earnings for the first 10 years, and to cancel Equity's obligation to pay RTC $12 million for Equity's tax loss over the same period. The above transaction is not expected to effect Equity's earnings. Equity will establish additional corresponding reserves on the assets coming out of coverage, equal to the payments received from the RTC. Jack E. Golsen, board chairman of the company, stated that the settlement is subject to verification of certain amounts, regulatory approval and finalization of a definitive agreement. LSB is a diversified company engaged in a variety of manufacturing, engineering, marketing and financial service activities on a worldwide basis. LSB's principal business activities consist of the manufacture and sale of chemical products, commercial air conditioning products, automotive and industrial products and the financial services business. LSB's common stock, debentures and Series 1 preferred stock are listed for trading on the American Stock Exchange. -0- 9/29/92 /CONTACT: Tony M. Shelby, CFO of LSB Industries, 405-235-4546/ (LSB) CO: LSB Industries, Inc.; Equity Bank for Savings, F.A. ST: Oklahoma IN: FIN SU:
CK -- NY048 -- 4403 09/29/92 12:55 EDT
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|Date:||Sep 29, 1992|
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