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REXENE TO FILE PLAN OF REORGANIZATION

 REXENE TO FILE PLAN OF REORGANIZATION
 DALLAS, Feb. 3 /PRNewswire/ -- Rexene Corporation (NYSE: RXN)


announced today that it plans to file its plan of reorganization and related disclosure statement with the United States Bankruptcy Court for the District of Delaware later this week. Although the Official Committee of Creditors has not yet approved the plan and disclosure statement, the company, and its Unofficial Noteholders' Committee, as previously announced, agreed in principle in October 1991 to restructure $403 million of senior and senior subordinated notes through a prenegotiated reorganization plan implemented under Chapter 11 of the United States Bankruptcy Code. To implement the agreed restructuring plan, the company filed its bankruptcy petition on Oct. 18, 1991.
 A bankruptcy court hearing is currently scheduled for March 4, 1992 to determine whether the disclosure statement (as it may be modified) complies with the Bankruptcy Code's disclosure requirements. Creditors and other interested parties have until March 2, 1992 to file objections to the disclosure statement. Upon approval of the disclosure statement by the court, the company will thereafter solicit the approval of the holders of outstanding notes as well as common stockholders. A confirmation hearing on the plan has been scheduled for April 29, 1992. If the plan of reorganization is confirmed by the bankruptcy court on this schedule, Rexene could complete its debt restructuring and emerge from Chapter 11 in May 1992.
 In a related matter, the company said that the Internal Revenue Service has filed a proof of claim in the bankruptcy proceeding for approximately $157 million (including interest and penalties), although the basis of such claim is unclear. The company has filed a motion objecting to the claim in full and requesting that the bankruptcy court determine the amount of the claim to be zero. The bankruptcy court has ordered an expedited discovery schedule and has scheduled a hearing for April 6, 1992 to determine such a claim. Certain other parties have asserted contingent claims in significant amounts which the company and advisors to the creditors' committee are reviewing. The company does not expect that any of these claims, as finally determined by the bankruptcy court, will be material or will otherwise adversely affect the feasibility of the plan.
 The company also announced that it had received a letter from Thai Petrochemical Industry Co., Ltd. ("TPI"), a Thailand manufacturer of polyethylene and polystyrene, in which TPI tentatively proposed a business combination with Rexene. Under the proposal, TPI would pay a maximum of $225 million (subject to possible reduction after further due diligence) to purchase all of the company's assets and to assume those post-petition liabilities that TPI believes are necessary to continue operations. TPI would not assume the company's existing $403 million of senior and senior subordinated notes or other pre-petition claims. Rather, the net after-tax proceeds from the sale of the company's assets would be available for application to all pre-petition claims, including claims under the senior and senior subordinated notes. TPI's proposal does not allocate funds between the two classes of noteholders or any other creditor, or between creditors and stockholders, nor would it compensate noteholders for any amounts accruing on the notes during the bankruptcy proceedings. The proposal is subject to a number of conditions, including TPI's ability to obtain financing and the satisfactory completion of due diligence and formal documentation.
 The company's board of directors continues to believe that an expedited bankruptcy proceeding is in the best interests of all of the company's constituents and has authorized management to use all efforts to meet the timetable described above. At the same time, the board has instructed management to work with its advisors, together with the advisors to the creditors' committee, to evaluate and clarify the TPI proposal in light of the company's existing agreement in principle with noteholders. In addition, the board has authorized management to attempt to improve the TPI proposal; however, based on preliminary discussions with financial advisors to TPI, the company is not hopeful that the TPI proposal can be significantly enhanced.
 Rexene Corporation, through its principal operating subsidiary, Rexene Products Company, manufactures thermoplastic resins and petrochemical products including polyethylene and polypropylene resins and plastic film. Rexene, headquartered in Dallas, has manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 -0- 2/3/92
 /CONTACT: Neil J. Devoy of Rexene, 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: CHM SU: RCN


JT -- NY110 -- 6436 02/03/92 18:31 EST
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Date:Feb 3, 1992
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