Reunion Industries Inc. Makes Announcement.STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 20, 1998--Reunion Industries Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RUNI; Pacific:RUN) announced today that it has refinanced the senior secured debt of its Oneida Rostone Corp. subsidiary ("ORC") with a facility provided by The CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group/Business Credit Inc. ("CITBC CITBC Cook Islands Trust and Banking Corporation CITBC CAUDIT Information Technology Benchmarking Committee (Australia) CITBC Coast Information Team British Columbia "). The new facility is a six-year senior secured credit facility including revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. loans of up to $10.2 million and a term loan in the initial amount of $6.0 million for ORC. The proceeds were used to refinance ORC's debt with Congress Financial Corporation and to provide working capital for ORC. The new facility also provides a letter of credit to collateralize collateralize To pledge an asset as security for a loan. A loan to a broker is collateralized by pledging securities. the bond for the Company's appeal of the judgment in favor of Bargo Energy Company. As previously reported, Reunion recorded a charge to continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $8.8 million in the second quarter of 1998 for the adverse judgment in the Company's litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Bargo Energy Company. With the letter of credit collateral provided by CITBC, the Company has filed a bond which suspends execution on the judgment while the Company appeals. A formal notice of appeal has been filed, and the Company intends to file its appeal as soon as possible. Reunion continues to maintain that no evidence sufficient to support a jury finding of fraud or related punitive damages was presented at trial, and intends to continue to vigorously oppose this judgment through the appeal. Reunion further announced that its Merger Agreement with Chatwins Group Inc. has been terminated by mutual agreement. The Company reported that this decision was made as a result of the inability to arrange sufficient financing to refinance all of the debt of the combined companies under current market conditions. The Company intends to seek additional financing to provide resources to meet Reunion's continuing corporate, legal and environmental expenses. Reunion Industries Inc. is a Stamford, Conn. based corporation primarily engaged in manufacturing high volume precision plastic products and providing engineered plastic services. |
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