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ARCO CHEMICAL COMPANY ANNOUNCES PRELIMINARY DIVESTITURE AGREEMENT WITH YUKONG LIMITED

 ARCO CHEMICAL COMPANY ANNOUNCES PRELIMINARY
 DIVESTITURE AGREEMENT WITH YUKONG LIMITED
 NEWTOWN SQUARE, Pa., June 15 /PRNewswire/ -- ARCO Chemical Company (NYSE: RCM) and Yukong Limited announced today that they have reached a preliminary agreement whereby ARCO Chemical Company will withdraw from their joint venture, YUKONG ARCO Chemical, Ltd. (YAC), divesting its entire equity interest to Yukong Limited.
 YAC produces propylene oxide and styrene monomer in Ulsan, South Korea, and will continue to operate under license from ARCO Chemical Company. The preliminary agreement provides that ARCO Chemical will make an equity payment to YAC and be released from all indemnification obligations to Yukong Limited with respect to the debt of YAC. As of March 31, 1992, ARCO Chemical was contingently liable for $204 million.
 ARCO Chemical Company indicated the transaction will result in a one-time charge which is expected to be $56 million to second quarter 1992 earnings due to both the write-down of the existing equity investment and the aforementioned payment.
 The transaction is subject to completion of the necessary contracts and various governmental approvals as well as approval by the respective boards of directors.
 /delval/
 -0- 6/15/92
 /CONTACT: Gerald T. Davis (media), 215-359-3198, or Marcia H. Gesser (investor), 215-359-3382, both of ARCO Chemical/
 (RCM) CO: ARCO Chemical Company; Yukong Limited ST: Pennsylvania IN: CHM SU: JVN


JS -- PH030 -- 0320 06/15/92 16:26 EDT
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Publication:PR Newswire
Date:Jun 15, 1992
Words:227
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