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BULK MATERIALS, INC. PLAN OF REORGANIZATION CONFIRMED BY BANKRUPTCY COURT IN NEW YORK Largest Trucking Firm Ever to Successfully Reorganize

 CLEVELAND, April 14 /PRNewswire/ -- Bulk Materials, Inc., (BMI) announced today that the U.S. Bankruptcy Court for the Southern District of New York has confirmed its plan of reorganization. The post- bankruptcy financing will close as early as May 1 at which time the reorganization plan will become effective.
 BMI is the largest trucking and distribution company ever to reorganize successfully under Chapter 11 since the trucking industry was deregulated in 1980. The company filed for Chapter 11 protection on Aug. 30, 1991.
 "This is a great day for BMI, its employees, customers, creditors and everyone else involved in this process," said P. Elliott Burnside, president and chief executive officer. "Confirmation of our reorganization plan by the Court allows BMI to exit from Chapter 11 protection in the very near future."
 Added Burnside: "BMI's financial health has been greatly improved, and our operations are functioning very smoothly. Our company's stronger balance sheet, improved cash flow, and better earnings are the result of the confidence and support of our customers. We expect BMI to enjoy profitable growth in earnings in the future based on our ability to provide our customers with a reliable, quality product. We want to thank our employees, customers and vendors for being so loyal and understanding as we successfully navigated through Chapter 11 to emerge as a much stronger and more viable company."
 New bank financing is being provided to BMI by ITT and Barclays, according to Burnside. "These new loan facilities will give us ample liquidity and working capital to operate and to grow," said Burnside.
 Cleveland-based BMI is one of the nation's safest and largest over- the-road transporters of liquid and dry bulk commodities. In addition, BMI is involved in all phases of the distribution business, including: dedicated delivery services; private fleet management; inventory control; landfill management; rail-to-truck transfer; storage and packaging; logistics management; domestic and international intermodal containers; and common and contract carrier services.
 BMI is a privately held company comprised of 15 subsidiaries. It had revenue of $185 million for the fiscal year ended September 30, 1992, and forecasts its revenues will grow to more than $206 million by 1995. The company operates 75 terminals in 22 states and has more than 2,000 employees.
 BMI's principal markets are in the Midwest, Southeast and Northeast. The company is made up of the following groups and subsidiaries;
 FLEET TRANSPORT GROUP -- Fleet Transport Company, Inc.; Fleet Transport Co. of Virginia, Inc.; Bulk Storage, Inc.
 REFINERS TRANSPORT GROUP -- Refiners Transport & Terminal Corp.; Ray Molder, Inc.; Ray Molder Carrier Corp.; Baywood Express, Inc.; Bulk Services, Inc.
 CUSTOMIZED TRANSPORT GROUP -- Best Transport, Inc.; Mitchell Transport, Inc.; Cryogenic Carriers, Inc.; Gypsum Haulage, Inc.; Bulk Leasing, Inc.; Northern Ohio Materials, Inc.; West Coast Intermodal, Inc.
 Under BMI's plan of reorganization, subordinated note holders will receive common stock in the company to be valued at approximately $11 million, against some $43 million in pre-petition debt. Most will go to the Equitable Life Assurance Society of the United States; Equitable Deal Flow Fund, L.P.; and Carl Marks Levered Equities (U.S.), L.P.
 Trade and general unsecured creditors will receive preferred stock, valued at $4.5 million, against some $25 million in preferred debt. The bulk of this will go to Reliance National; Goodyear Tire & Rubber Co.; Allwaste Tank Cleaning; LDI Corp., and other general unsecured creditors.
 BMI was formed in 1989 after management led a $90 million buyout of a division of Leaseway Transportation Corp. When the company filed for Chapter 11 protection, it cited inappropriate expansion of the business and insurance problems for its bankruptcy filing. At the time, the company cited the weight of more than $12 million in liabilities neither authorized by nor reported to the board of directors by the previous operating management.
 Burnside, a veteran of the transportation and distribution industry, was hired in November 1991 to turn around BMI. He had previously served as the president and/or chief operating officer of three trucking firms, and held senior posts with a global container shipping operator. Burnside had been president and chief operating officer of Jones Truck Lines of Springdale, Ark., for five years before coming to BMI.
 -0- 4/14/93
 /CONTACT: David Eden of William Silverman & Company, 216-696-7750, for Bulk Materials, Inc./


CO: Bulk Materials, Inc. ST: Ohio IN: TRN SU: BCY

LC -- CL020 -- 5877 04/14/93 16:20 EDT
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Date:Apr 14, 1993
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