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GAYLORD RESTRUCTURING CONFIRMED

 GAYLORD RESTRUCTURING CONFIRMED
 DEERFIELD, Ill., Oct. 16 /PRNewswire/ -- Gaylord Container


Corporation (AMEX: GCR) announced today that its prepackaged plan of reorganization has been confirmed by the U.S. Bankruptcy Court for the Eastern District of Louisiana and is scheduled to be effective on Nov. 2, 1992. As previously announced, the company's prepackaged plan was filed Sept. 11, 1992 after Gaylord's bondholders, banks and stockholders had voted overwhelmingly to approve the plan.
 "Confirmation of the plan marks the conclusion of a 17-month effort to complete a comprehensive financial restructuring of Gaylord, while continuing operations without interruption. We have successfully achieved both goals. Gaylord's debt and debt service requirements have been significantly reduced giving the company a balance sheet and financial structure that is appropriate given our current economic and operational outlook. Further, the restructuring was accomplished without affecting our day-to-day operations. Throughout the entire process, we remained current with all of our trade creditors and continued to provide our customers with the high-quality products and service they have come to expect from Gaylord," said Gaylord's chairman and chief executive officer, Marvin A. Pomerantz.
 As soon as practicable following the effective date, the company will issue approximately $377.7 million principal amount of new senior subordinated debt securities, six million shares of Gaylord Class A common stock and 31.8 million redeemable exchangeable warrants plus pay approximately $37.4 million of interest (including approximately $10.7 million payable in additional debt securities) accrued from Jan. 1, 1992, through Nov. 2, 1992. This package of consideration is being exchanged for all of Gaylord's $582.8 million principal amount of subordinated debt plus approximately $133.5 million of accrued but unpaid interest through Sept. 11, 1992.
 The company said it has entered into an amended and restated agreement with its bank group that provides for a $175 million term loan facility, a $66 million revolving credit facility and an approximately $25 million standby letter of credit facility. The company's $100 million DIP credit facility will no longer be required and will terminate on the effective date. At Nov. 2, 1992, the company estimates that it will have approximately $10 million of cash and approximately $35 million of bank credit available under its amended and restated credit agreement.
 Under the terms of the prepackaged plan, Gaylord's board of directors has been expanded to 11 members from six members. Joining the board as of the effective date are: Frank E. Babb, 59, chairman of The Shoals Company; Norman H. Brown, 45, managing director of Donaldson, Lufkin & Jenrette Securities Corporation; Harve A. Ferrill, 59, president and chief executive officer of Advance Ross Corporation; John E. Goodenow, 57, president and chief executive officer of Goodenow Bancorporation; and Michael Kuperman, 38, vice president of Mid-America Group, Ltd.
 Gaylord Container Corporation is a major national manufacturer and distributor of corrugated containers, containerboard, unbleached kraft paper, multiwall bags and grocery bags and sacks.
 -0- 10/16/92
 /CONTACT: Kathryn Chieger of Gaylord Container, 708-405-5645/
 (GCR) CO: Gaylord Container Corporation ST: Illinois IN: PAP SU: RCN


GK-SH -- NY052 -- 1043 10/16/92 14:59 EDT
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Publication:PR Newswire
Date:Oct 16, 1992
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