BARTON INDUSTRIES DEFAULTS ON LOANS
BARTON INDUSTRIES DEFAULTS ON LOANS SHAWNEE, Okla., Aug. 18 /PRNewswire/ -- Barton Industries, Inc.
(NASDAQ: BART) recently announced that it is currently in default under certain promissory notes held by American Bank and Trust Co. of Tulsa, Okla., the Oklahoma Industrial Finance Authority, and the American National Bank of Shawnee, Okla.
Barton is in the process of negotiating a moratorium on payment of principal and interest with each of the three lenders. None of Barton's lenders has initiated proceedings against the company in connection with the described defaults, nor are any such proceedings anticipated absent a breakdown in moratorium discussions. Barton expects that a moratorium will be consummated within the next 45 days and that it will begin making payments to amortize the amounts deferred by the moratorium. Since the confirmation of its Chapter 11 Reorganization in early 1992, Barton has experienced an approximate 40 percent reduction in projected sales and cash flow substantially attributable to the depressed nature of the domestic oil and gas industry. In response to depressed sales, and pending improvement of its cash flow, Barton has implemented drastic cost-containment measures. Such measures include a temporary 50 percent salary deferment by executive management, partial lay-off of employees, the closing of certain out-of-state sales offices, a temporary suspension of the company's independent outside audit, and continued minimization of all discretionary expenses. Barton Industries, Inc. is an Oklahoma corporation that manufactures a diversified selection of oil field equipment. -0- 8/18/92 /CONTACT: Larry D. Kalka, treasurer and chief financial officer of Barton Industries, 405-273-7660/ (BART) CO: Barton Industries, Inc. ST: Oklahoma IN: SU:
PS -- NY073 -- 1096 08/18/92 16:41 EDT
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|Date:||Aug 18, 1992|
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