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JUDGE ISSUES TEMPORARY RESTRAINING ORDER IN KEENE BANKRUPTCY

 NEW YORK, Dec. 6 /PRNewswire/ -- Keene Corporation (NASDAQ: KEEN) announced that a temporary restraining order was entered today by Judge Stuart M. Bernstein of the United States Bankruptcy Court for the Southern District of New York. This temporary "breathing space" is designed to prevent lawyers, surety companies, banks or any other person or entity from taking any action to access or interfere with bonds, judgments, letters of credit, escrows or other assets in which Keene may have any interest or the loss of which may undermine Keene's ability to produce a successful reorganization. Judge Bernstein set a date to hear further argument regarding a broader injunction for Dec. 13, 1993 at 2 p.m.
 Stuart Rickerson, Keene's Vice President - General Counsel, said "This step was taken to prevent a disorganized race to court houses around the country and to allow Judge Bernstein, Keene and tens of thousands of individuals with claims against Keene's assets to make a reasoned, deliberate and equitable determination on how and when those resources should be divided."
 Keene filed a voluntary Chapter 11 petition in New York on Friday in the wake of a Dec. 1, 1993 federal appeals court panel decision dismissing Keene's innovative limited fund, mandatory class action. "At the end of last week, a handful of lawyers tried to execute on upwards of $50 million of Keene's assets, leaving Keene with the choice of filing for bankruptcy court protection, or waiving goodbye to nearly half its assets," Rickerson said.
 After the Second Circuit decision, Keene immediately filed a petition for reconsideration with the appeals court. In a related development, Keene's counsel was informed by the Second Circuit Court of Appeals that it has taken the petition under consideration, It is not known when a decision may be rendered.
 Rickerson concluded "Keene hopes that all parties will continue to cooperate with Judge Bernstein until a final resolution of Keene's asbestos-related liabilities can be achieved. In the meantime, with the automatic stay protecting the assets of a company in Chapter 11, and with the temporary breathing space provided by Judge Bernstein's order today, judges around the country can continue to defer the normal processing of cases involving Keene to avoid unnecessary expenditure of judicial resources and unneeded spending of Keene's limited funds."
 -0- 12/6/93
 /CONTACT: Stuart E. Rickerson, vice president - general counsel of Keene Corporation, 212-486-3200, ext. 235/
 (KEEN)


CO: Keene Corporation ST: New York IN: SU:

SH-MP -- NY091 -- 0886 12/06/93 14:58 EST
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Publication:PR Newswire
Date:Dec 6, 1993
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