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BARTON INDUSTRIES STILL IN DEFAULT UNDER LOAN AGREEMENTS

 SHAWNEE, Okla., Jan. 20 /PRNewswire/ -- Barton Industries, Inc., an Oklahoma corporation that manufactures valves and related products used primarily in the oil and gas industry and certain other industrial markets, today announced that the company remains in default under certain loan agreements with its lenders. Barton has been in default on these loan agreements since mid-1992 at which time officials began negotiations with the institutions to defer amortization of the past due payments. Due to the default, any of Barton's lenders could attempt to foreclose on their loans.
 Further, as of Dec. 31, 1992, Barton is not in compliance with the Third Amended Joint Plan of Reorganization by virtue of its failure to timely pay certain administrative and tax obligations in compliance with the reorganization plan.
 Barton also announced that 1992 sales were substantially less than anticipated in its reorganization plan. Officials at Barton stated that the company's failure to achieve projected sales was the result of substantially reduced activity in the oil and gas industry during the last 12 months and Barton's inability to recover sales lost in connection with its reorganization under Chapter 11 of the Bankruptcy Code. Profit margins for the year were also lower than anticipated due to increased competition in the oil and gas industry.
 Barton's automation division completed three new products in late 1992. The automation division has contributed little revenue during the past 10 months while using significant cash reserves to develop its new products. The automation division's continued existence will depend largely upon its ability to obtain acceptance of the new products in the market place and, consequently, to obtain market share.
 -0- 1/20/93
 /CONTACT: Larry D. Kalka, treasurer & chief financial officer of Barton Industries, Inc., 405-273-7660/


CO: Barton Industries ST: Oklahoma IN: OIL SU:

LD -- NY090 -- 7171 01/20/93 19:39 EST
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Publication:PR Newswire
Date:Jan 20, 1993
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