Printer Friendly

ALLIS-CHALMERS STOCK HOLDERS INTEND TO VOTE FOR REVERSE STOCK SPLIT

ALLIS-CHALMERS STOCK HOLDERS INTEND TO VOTE FOR REVERSE STOCK SPLIT
 MILWAUKEE, June 4 /PRNewswire/ -- Holders of a majority of the outstanding shares of Allis-Chalmers Corporation common stock intend to vote in favor of a 1-for-15 reverse stock split, assuring its approval and adoption in accordance with Delaware corporation law, the company announced today.
 A special meeting of shareholders will be held at the offices of the company's transfer agent in New York City on June 17, 1992 for consideration of and voting on the proposal. A notice of the special meeting and an information statement are being mailed this week to shareholders of record as of May 19, 1992. Proxies are not being solicited.
 Allis-Chalmers said the reverse stock split will enable it to reduce the administrative costs associated with the large number of shareholders who now hold fewer than 15 shares.
 The company at present has 15,164,195 shares issued and outstanding owned by approximately 17,799 shareholders. The shares have been held in escrow since Dec. 2, 1988, when the company's plan of reorganization under Chapter 11 proceedings was consummated. An independent appraisal as of Dec. 31, 1991 established a fair market value of $0.59 per share.
 The reverse stock split is expected to be effective on or about June 24, 1992. When the reverse stock split becomes effective, each 15 shares of the old common stock, $0.01 par value per share, will automatically be combined into one share of the new common stock, par value $0.15 per share.
 In lieu of the issuance of fractional shares of the new common stock, shareholders whose whole number of shares of old common stock is not evenly divisible by 15 will receive a pro rata cash payout at the appraised rate of $0.59 per share of old common stock. If adjusted to reflect the reverse stock split, this amount is equivalent to $8.85 per share of new common stock ($0.59 multiplied by 15).
 Allis-Chalmers estimates that as of the effective date there will be 1,006,400 shares of new common stock issued and outstanding that will be owned by approximately 7,412 shareholders.
 In order to maximize the likelihood of preserving the company's substantial net operating and other tax loss carryforwards, the plan of reorganization provides that all common stock issued pursuant to the plan be deposited in escrow and requires that certain restrictions be placed on the transfer of stock.
 As soon as practicable after the reverse stock split is effective, the company intends to release from escrow approximately 40 percent of the then issued and outstanding new shares on a pro rata basis to shareholders. The approximately 60 percent of the shares remaining in escrow will be released on or before May 20, 1995.
 At present, Allis-Chalmers said, it does not intend to file a listing application with any securities exchange for trading, or for quotation in the NASDAQ system, for the new common stock.
 -0- 6/4/92
 /CONTACT: Dennis Thisted of Allis-Chalmers, 414-475-3343/ CO: Allis-Chalmers Corporation ST: Wisconsin IN: SU:


LR-OS -- NY071 -- 7184 06/04/92 16:31 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 4, 1992
Words:521
Previous Article:GENERAL MOTORS AND THE UAW HONOR 150 WORKERS FOR ACHIEVING EDUCATIONAL GOALS
Next Article:SABINE ROYALTY TRUST ANNOUNCES CASH DISTRIBUTION
Topics:


Related Articles
ALLIS-CHALMERS SHAREHOLDERS APPROVE 1-FOR-15 STOCK SPLIT
ALLIS-CHALMERS REPORTS RESULTS
ALLIS-CHALMERS CORPORATION REPORTS RESULTS
ALLIS-CHALMERS REPORTS LOSS
ALLIS-CHALMERS REPORTS FIRST QUARTER 1993 RESULTS
ALLIS-CHALMERS CORPORATION NAMES TESSLER AS CHAIRMAN OF BOARD AND CEO
ALLIS-CHALMERS REPORTS 1993 FINANCIAL RESULTS
Allis-Chalmers Corporation Reports Results
Allis-Chalmers Corporation Announces First Quarter Earnings; One-to-Five Reverse Stock Split.
Allis-Chalmers, Bronco Drilling Call Off Merger.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters