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SCHWINN BICYCLE FILES FOR CHAPTER 11 PROTECTION

 SCHWINN BICYCLE FILES FOR CHAPTER 11 PROTECTION
 CHICAGO, Oct. 8 /PRNewswire/ -- Schwinn Bicycle Co. announced today


that it filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code.
 The company said a financial restructuring is necessary to alleviate a heavy debt burden, which has been exacerbated by the protracted sluggishness of the economy.
 The company's principal creditors are Harris Trust and Savings Bank, National Bank of Detroit, Chemical Bank, the Hong Kong and Shanghai Banking Corporation, the Mitsubishi Bank and La Salle National Bank.
 "The protection of Chapter 11 is intended to allow us to operate our business in an ordinary manner and return to servicing the needs of our long-standing dealers and customers," said Edward R. Schwinn Jr., president and chief executive officer. "We are confident that Schwinn will emerge from bankruptcy as a stronger company."
 Schwinn intends to use Chapter 11 to continue the reorganization and stabilization of its operations and marketing strategies as well as to restructure debt.
 "Many of the tough operational decisions already have been completed. Chapter 11 will be used to finalize the changes and better position us to properly review our alternatives for the future," stated Schwinn.
 The alternatives include equity investments or merger of the company. Schwinn said the filing does not interfere with ongoing negotiations with potential investors, who are attracted by the company's recent steps to boost sales.
 "Schwinn has recently introduced new products that have been well received in the market," Schwinn said. "We are employing new technologies, and are stepping up marketing programs for our dealers."
 Established in 1895, Schwinn Bicycle Co. is a privately held company headquartered in Chicago and carrying one of the best recognized names in the world. Schwinn operates a manufacturing facility in the United States, is a joint venture partner in manufacturing operations in China and Hungary and distributes bicycles and fitness equipment in the United States, Canada and selected overseas markets.
 -0- 10/8/92
 /CONTACT: Brad Samson or Mary Swanton of Hill and Knowlton, Inc, 312-565-1200, for Schwinn Bicycle Co./ CO: Schwinn Bicycle Co. ST: Illinois IN: LEI SU: BCY


AH -- NY054 -- 7856 10/08/92 12:23 EDT
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Publication:PR Newswire
Date:Oct 8, 1992
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