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RSI HOLDINGS ANNOUNCES LAWSUIT SETTLEMENT TERMS

 RSI HOLDINGS ANNOUNCES LAWSUIT SETTLEMENT TERMS
 GREENVILLE, S.C., Jan. 3 /PRNewswire/ -- RSI Holdings, Inc.,


(NASDAQ: RSIH) announced today that on Dec. 31, 1991, a consent decree and judgment was entered setting forth the terms of the settlement of a lawsuit brought by a subsidiary of RSI Holdings, Inc., against NL Industries, Inc., a New Jersey corporation, and Esselte Pendaflex Corporation, a New York corporation. The suit sought the recovery of costs incurred in connection with the clean-up of pollutants located on a California plant site formerly owned by the subsidiary. The decree provides, among other matters, that NL Industries, Inc., and Esselte Pendaflex Corporation will pay a total of $705,000 to the subsidiary. In addition, NL Industries, Inc., agreed in the decree to undertake the investigation and clean-up of hazardous substances found on a specified portion of the property.
 The net cash proceeds received by the subsidiary will be recognized as income by RSI Holdings, Inc. and applied to reduce the indebtedness of RSI Holdings, Inc. to a bank. In addition, RSI Holdings, Inc., has accrued $770,000 to cover any future liability with respect to clean-up of the site and related legal costs. RSI Holdings, Inc. will recognize as income the elimination of this accrual. This is expected to result in an aggregate net income effect before taxes of approximately $1,475,000. This amount will be partially reduced by any amounts required to be paid to a third party and by legal expenses and other costs in connection with the clean-up and the lawsuit. These reductions are currently expected to be approximately $120,000.
 RSI Holdings, Inc., is a Greenville, S.C.-based distributor of outdoor power and turf-care equipment. The operations of the subsidiary involved in the lawsuit, Wiegmann & Rose International Corp., were discontinued in 1987. After operations were discontinued, it was discovered that hazardous wastes had been buried on the property by other parties.
 -0- 1/3/92
 /CONTACT: Buck A. Mickel of RSI Holdings, Inc., 803-271-7171/
 (RSIH) CO: RSI Holdings, Inc.; NL Industries, Inc.; Esselte Pendaflex Corp. ST: South Carolina, New Jersey, New York IN: SU


CM -- CH006 -- 6466 01/03/92 11:24 EST
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Publication:PR Newswire
Date:Jan 3, 1992
Words:362
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