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AMENDED PLAN OF REORGANIZATION FILED FOR NATIONAL GYPSUM

 AMENDED PLAN OF REORGANIZATION FILED FOR NATIONAL GYPSUM
 NEW YORK, April 22 /PRNewswire/ -- The Official Bond and Trade


Committee have filed an amended plan of reorganization for National Gypsum Company in the U.S. Bankruptcy Court in Dallas. Important changes from the plan outline filed on Jan. 21 include:
 1. Trade creditors will receive notes equal to 100 percent of their allowed claims, as compared with 90 percent in the earlier plan.
 2. The trade and the holders of the 11-3/8 percent priority senior subordinated notes will continue to be issued $150,000,000 of 10 percent "A" notes. But now there will be issued, in addition, $192,129,000 "B" notes which will bear interest at 11 percent payable at the company's option in cash or common stock valued at market. Under the prior plan, the "B" notes could be paid in kind via the issuance of additional notes. In the event that the company makes six semi-annual payments in stock, it will be obligated to retire these notes at par, or to restructure them into new securities with an indicated value of 102 percent of the amount due.
 3. The Austin Company will be separated from National Gypsum Company by distributing 22.5 percent of its stock to the 14.5 percent debenture holders and 77.5 percent to the 15.5 percent of discount debenture holders. To the extent that insurance proceeds are inadequate to cover all asbestos claims, the Austin stock will be reallocated to the asbestos claimants
 4. National Gypsum Company will have 20,000,000 shares issued and outstanding at confirmation. Of these shares, the former 14.5 percent note holders will receive approximately 65 percent and the former 15.5 percent holders will receive 35 percent. In addition, the 15.5 percent holders will be issued warrants to buy 2,000,000 additional shares at a price of $12.875 per share.
 The committee also filed with the court a disclosure statement which revealed that the committee's forecasts of Wallboard volume and prices over the next several years, and the resultant earnings and cash flow, are considerably higher than management's projections. The committee anticipates a more rapid and sustained improvement, but there is no guarantee that these forecasts will be achieved. Attached is a summary of the committee's projections.
 Wilbur L. Ross, Jr. of Rothschild Inc., financial advisor to the committee, said: "We believe that the revised plan allocates most of the present trading value to the senior creditors while preserving the upside for the junior creditors. We are optimistic that National Gypsum's fundamental values will be revealed more clearly as operating results improve later this year."
 THE OFFICIAL BOARD AND TRADE COMMITTEE
 Amended Plan of Reorganization
 New National Gypsum Company Inc.
 Summary Financial Projections (Dollars in millions)
 Adjusted
 1992 1993 1994 1995 1996 1997
 Net Sales 450.01 497.2 575.1 631.4 620.4 606.9
 EBIDTA(A) 25.8 58.4 110.0 145.9 130.7 115.8
 Net Earnings (Loss) 733.0(B) (10.8) 21.4 45.6 37.2 28.5
 Ending Cash Balance 11.6 12.8 39.0 105.0 152.1 195.2
 (A) EBIDTA -- earnings before interest, taxes, depreciation and amortization.
 (B) Net earnings for 1992 consist of a loss of $24.4 million before reorganization items and taxes, reorganization write-offs of $223.9 million, tax benefits of $94.5 million, and extraordinary gains of $877.7 million from the reorganization.
 -0- 4/22/92
 /CONTACT: Wilbur L. Ross, Jr. of Rothschild, 212-757-6000/ CO: National Gypsum Company; Rothschild Inc. ST: Texas IN: MNG SU: RCN


SM-TQ -- NY099 -- 1479 04/22/92 17:04 EDT
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Publication:PR Newswire
Date:Apr 22, 1992
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