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REXENE CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

 REXENE CORPORATION ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS
 DALLAS, March 11 /PRNewswire/ -- Rexene Corporation (NYSE: RXN) today reported results of operations for the fourth quarter and year ended Dec. 31, 1991. Sales for 1991 were $449.7 million compared with $502.2 million for 1990. Operating income for the full year 1991 was $12.0 million compared with $81.1 million in 1990. Net loss totaled $42.7 million, or $1.36 per share for 1991 compared with net income of $19.9 million or $0.63 per share in 1990. Rexene's 1990 net income includes an extraordinary gain of $17.2 million resulting primarily from the repurchases of $97 million of senior notes at a discount.
 For the three months ended Dec. 31, 1991, Rexene reported sales of $98.8 million compared with $126.3 million for the same period in 1990. Operating loss for the final quarter of 1991 was $2.5 million compared with operating income of $18.5 million in 1990. The quarter ended Dec. 31, 1991 resulted in a net loss of $11.1 million, or $0.35 per share compared with a net loss of $2.0 million, or, $0.06 per share for the comparable 1990 quarter.
 Results in 1991 were adversely affected by a 31 percent decline in average selling prices for styrene and a 14 percent decline in average selling prices for polyethylene and moderately higher feedstock costs. These factors accounted for substantially all of the decrease in operating income.
 As previously reported, after reaching an agreement in principle with its unofficial noteholders committee, the company filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Oct. 18, 1991. The United States Bankruptcy Court in Delaware has rescheduled a Court hearing to approve the adequacy of the company's disclosure statement on its plan of reorganization, for April 6, 1992. Upon approval of the disclosure statement by the bankruptcy court, the company will solicit the approval of the holders of its outstanding notes and common stock. A hearing to confirm the plan is scheduled for May 18, 1992. Based on this schedule, the company expects to emerge from the Chapter 11 proceedings in June 1992.
 The company also announced that it had received a revised proposal regarding a business combination from Thai Petrochemical Industry Co., Ltd. (TPI), a manufacturer of polyethylene and polystyrene located in Thailand. TPI has now proposed to acquire the company for $250 million in cash, an increase of $25 million from TPI's previous offer which was received late in January. In addition, TPI would assume certain pre- petition and post-petition liabilities, including $18.5 million of accrued interest on the outstanding Notes and obligations relating to ongoing normal operations. Under the proposal, the noteholders would not, however, receive any payments in respect of amounts accruing during the bankruptcy proceedings.
 The proposal states that TPI will cnsider any allocation of the cash proceeds, subject to adjustment. The allocation suggested by TPI in the proposal is as follows: (i) $189.75 million cash to senior noteholders, (ii) $52.50 million cash to the senior subordinated noteholders, and (iii) $7.75 million cash to equityholders. The TPI proposal states that the relevant payments would be reduced proportionately for Chapter 11 expenses and liabilities that TPI does not assume. TPI's proposal is subject to a number of conditiions, including the satisfactory completion of due diligence.
 In addition, the company announced that it had received an alternative restructuring proposal from Cambridge Capital Fund, L.P. (Cambridge), an affiliate of Baker & Nye, a New York money management firm. Although the proposal contains numerous uncertainties and various significant conditions, the proposal involves establishing an independent company consisting of the company's CT Film division (CT Film) and issuing various secured and unsecured debt obligations and equity in each of CT Film and reorganized Rexene (Reorganized Rexene) to the company's existing noteholders.
 Under the Cambridge proposal, the holders of the company's outstanding senior notes would receive $100 million on senior secured notes, $85 million of senior unsecured notes and 25 percent of the outstanding common stock of Reorganized Rexene, and $40 million of senior secured notes and five percent of the common stock of CT Film. The holders of the company's outstanding senior subordinated notes would receive $50 million of senior subordinated notes and 40 percent of the common stock of Reorganized Rexene, and $10 million of senior subordinated notes and 40 percent of the common stock of CT Film.
 Cambridge would purchase preferred stock convertible into 25 percent of the fully-diluted common stock of Reorganized Rexene for $10 million and preferred stock convertible into 25 percent of the common stock of CT Film for $15 million. The company's common stockholders would receive 10 percent of Reorganized Rexene. In addition, Reorganized Rexene would own 10 percent of CT Film after a proposed initial public offering of up to 20 percent of the common stock of CT Film.
 In addition, holders of senior subordinated notes would receive rights to purchase additional stock in Reorganized Rexene and CT Film (representing 15 percent and 10 percent respectively of those companies) for an aggregate purchase price of $12 million.
 The company is continuing to work diligently to complete its existing agreement in principle with the Noteholders for the upcoming April 6 Disclosure Statement hearing. At the same time, the company and its advisors, together with the advisors to the creditors' committee, will evaluate these new proposals.
 Rexene Corporation, through its principal operating subisidiary, Rexene Products Company, manufactures thermoplastic resins and petrochemical products including polyethylene and polypropylene resins and plastic film. Rexene, headquartered in Dallas, operates manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 REXENE CORPORATION AND SUBSIDIARIES
 FINANCIAL HIGHLIGHTS
 (Dollars in Thousands, Except Per Share Amounts)
 Year Ended Quarter Ended
 December 31, December 31,
 1991 1990 1991 1990
 Net sales $449,728 $502,186 $ 98,826 $126,272
 Operating income (loss) 12,028 81,100 (2,526) 18,457
 Net interest expense 55,330 64,799 8,695 14,985
 Income (loss) before
 extraordinary gains (42,747) 2,705 (11,087) (2,209)
 Extraordinary gains,
 net of income taxes
 (primarily repurchases
 of notes) -- 17,169 -- 258
 Net income (loss) $(42,747) $ 19,874 $(11,087) $( 1,951)
 Earnings per share:
 Income (loss) before
 extraordinary gains $ (1.36) $ 0.09 $ (0.35) $ (0.07)
 Extraordinary gains,
 net of income taxes -- .54 -- 0.01
 Net income (loss) $ (1.36) $ 0.63 $ (0.35) $ (0.06)
 -0- 3/11/92
 /CONTACT: Neil J. Devroy of Rexene, 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: CHM SU: ERN


KD -- NY076 -- 7554 03/11/92 17:52 EST
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