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DIBRELL BROTHERS INCORPORATED ESTABLISHES RESERVE AGAINST FUTURE COLLECTION OF ACCOUNTS RECEIVABLE FROM SHIPMENTS TO IRAQ

 DIBRELL BROTHERS INCORPORATED ESTABLISHES RESERVE AGAINST FUTURE
 COLLECTION OF ACCOUNTS RECEIVABLE FROM SHIPMENTS TO IRAQ
 DANVILLE, Va., April 8 /PRNewswire/ -- Dibrell Brothers, Incorporated (NASDAQ-NMS: DBRL) announced today that it was establishing a reserve against the future collection of certain trade accounts receivable arising from tobacco shipped during the fiscal year 1990 to Iraq's State Enterprise for Tobacco and Cigarettes and that the reserve would result in a $3.6 million net of tax charge against earnings or $0.27 per share, ($0.23 per share fully diluted), for the third quarter ending March 31, 1992.
 The Company stated that the accounts receivable arose from tobacco shipped to Iraq prior to the 1990-1991 hostilities. The tobacco was sold against letters of credit issued by Bank Rafaidan, the Iraqi National Bank. Dibrell ceased tobacco shipments to Iraq following the invasion of Kuwait by Iraq in accordance with the Executive order issued by the President of the United States. Dibrell subsequently presented the letters of credit for payment to Banca Nazionale del Lavoro (BNL), an Italian bank having an agency in Atlanta, Georgia, which Dibrell believed had confirmed the Bank Rafaidan letters of credit. BNL refused to honor the letters of credit upon presentation of the appropriate documentation by a subsidiary of Dibrell.
 On March 31, 1992, the United States District Court for the Northern District of Georgia dismissed the lawsuit that had been brought by a subsidiary of Dibrell against BNL for damages resulting from BNL's refusal to honor the letters of credit and entered judgement in favor of BNL.
 Claude Owen, Chairman and Chief Executive Officer of Dibrell, stated: "We obviously are very disappointed and disagree with this result. We intend to appeal the decision. We also expect to be paid by our Iraqi customer and its bank once normal political and economic relations are reestablished with Iraq. In the interim, in view of this unexpected result, we are establishing a reserve against any future non- collectibility of these trade accounts receivable." As these were the only sales Dibrell has made to Iraq's State Enterprise for Tobacco and Cigarettes, there will be no adverse effect on our ongoing tobacco operations.
 Dibrell is engaged in two international businesses. The major business involves purchasing, processing and selling leaf tobacco worldwide. The other business involves the wholesale purchasing and selling of fresh cut flowers in Europe, North America and Japan.
 -0- 4/8/92
 /CONTACT: John Hunnicutt, Dibrell Brothers, Incorporated, 804-791-0151/
 (DBRL) CO: Dibrell Brothers, Incorporated ST: Virginia IN: TOB SU:


DF -- CH004 -- 6511 04/08/92 18:59 EDT
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Publication:PR Newswire
Date:Apr 8, 1992
Words:426
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