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IMC FERTILIZER'S 10-Q FILING DISCLOSES NEW LITIGATION AND FINANCIAL CONDITION; WAIVERS AND COMMITMENTS FROM LENDERS ANNOUNCED TODAY

 NORTHBROOK, Ill., May 20 /PRNewswire/ -- IMC Fertilizer Group, Inc. (NYSE: IFL), in its Form 10-Q for the quarter ended March 31, 1993, filed yesterday with the Securities and Exchange Commission, disclosed additional information regarding pending litigation, its financial condition and the likelihood of a fourth quarter operating loss.
 In addition, the company announced today that it has received the following concerning its credit arrangements:
 -- Waivers from certain lenders
 -- An agreement in principle from the Prudential Insurance Company of America to amend its note agreement, and
 -- A commitment from a group of banks for a new revolving credit working capital facility.
 In yesterday's filing, the company disclosed that on April 22, Angus Chemical Company filed a lawsuit in Louisiana naming the company and certain of its insurers as defendants and alleging damages in addition to those settled in Texas litigation on April 1.
 The company had reached an agreement with Angus Chemical Company and its property insurer on April 1, intended to resolve all claims and litigation between the two companies arising out of a May 1991 explosion at a nitroparaffin plant owned by Angus but operated by the company, except third party claims against Angus in Louisiana and elsewhere.
 The company has been informed by counsel to Angus that the alleged damages in this newest lawsuit relate to:
 1) Direct action claims against two of the company's insurers, one of which the company has agreed, in connection with settlement of the Texas litigation, to indemnify, and
 2) Third party claims against Angus and payments already made by Angus to third parties.
 With respect to the potential impact on the company of the direct action claims against its insurers, the company believes there are meritorious defenses to such claims and that, in any event, the company's maximum exposure, if any, for such claims is approximately $30 million. However, until the company has the opportunity to fully analyze specific damage claims made by Angus in this new lawsuit, it is unable to fully evaluate possible defenses, including the extent to which these claims are barred by terms of the Texas settlement referred to above, or to make a definitive judgment as to potential liability exposure, if any.
 The Form 10-Q further stated that as a result of its financial results for the quarter ended Dec. 31, 1992, the company was no longer in compliance with certain financial covenants under its bid loan notes and under its 11.25 percent notes pursuant to its note agreement with Prudential.
 The $100 million of bid loan notes outstanding at March 31, 1993, previously scheduled to mature on April 22, 1993, have been extended until June 30, 1993. The company has received from Prudential a waiver of its non-compliance with the financial covenants relating to its $220 million of 11.25 percent notes through June 30, 1993, by which time the company is attempting to complete an amendment to such agreement. The company announced today that it has received an agreement in principle from Prudential for such amendment.
 The company also announced today that it has received a commitment from a group of banks to provide it with a new revolving credit working capital facility under which the company could borrow up to $100 million for general corporate purposes. The commitments from Prudential and the group of banks are each subject to various closing conditions including satisfactory completion of a due diligence review.
 The company also is pursuing additional financing of approximately $225 million, the proceeds of which would be used to retire the $100 million of bid loan notes, repurchase $50 million of receivable interests previously sold, and pay the $60.6 million portion of the recent settlement with Angus and its property insurer that is due by June 30, 1993. The amendment to the 11.25 percent notes, borrowing availability under the working capital facility and consummation of the approximately $225 million of additional financing are each conditional on the others.
 The company reported that its lenders have indicated they are considering whether non-disclosure of the new Angus litigation to them at the time of the extension of the bid loan notes and the Prudential waiver may have constituted a default which would entitle such lenders to accelerate payment of these obligations. The company reported today that it has received from lenders under the bid loan notes waivers of any such default which may have occurred and that it is in discussions with its other lenders regarding their waivers. If it is determined that a default occurred, such default, unless waived, would likely also prevent the company from obtaining its new working capital facility, the amendment to the Prudential note agreement and the approximately $225 million of additional financing, and although the company would attempt to obtain alternative financing, there can be no assurance that it could do so in a timely manner.
 The company's ability to meet its obligations due June 30, 1993, depends upon, among other things, the amendment of the 11.25 percent notes, the availability of the working capital facility and the company's obtaining the approximately $225 million of additional financing.
 In addition, the ongoing ability of the company to meet its debt service and other obligations will be dependent upon the future performance of the company which will be subject to financial, business and other factors, certain of which are beyond its control, such as prevailing economic and industry conditions and prices for the company's products, and upon formation of the previously announced joint venture partnership with Freeport-McMoRan Resource Partners, Limited Partnership.
 The company also announced that it continues to experience severe price declines and decreased demand for its products, particularly phosphate chemicals where products are trading at their lowest level in 20 years. Due to the current worldwide oversupply of fertilizer products and the resultant decline in prices, the company expects to record a net loss from operations for the quarter ending June 30, 1993.
 -0- 5/20/93
 /CONTACT: John E. Galvin (financial), 708-205-4814, or Thomas C. Pasztor (media), 708-205-4801, both of IMC Fertilizer, Inc./
 (IFL)


CO: IMC Fertilizer Group, Inc.; Angus Chemical Company;
 Prudential Insurance Company of America ST: Illinois IN: CHM SU:


GK-KW -- NY069 -- 0818 05/20/93 13:39 EDT
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Date:May 20, 1993
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