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METALLURGICAL INDUSTRIES BORROWINGS DECLARED IN DEFAULT

 TINTON FALLS, N.J., July 23 /PRNewswire/ -- Metallurgical Industries, Inc. (NASDAQ: MTALA) announced today that its outstanding borrowings under a secured loan agreement with Midlantic National Bank were declared in default, resulting in an acceleration of payment of principal and accrued interest. As a result of the bank's action, a secured debt owed to Ira L. Friedman, president of the company, was also declared in default with payment of principal and accrued interest accelerated by him.
 The board of directors of Metallurgical has directed the company's management to proceed with the liquidation of specified assets collateralizing these loans in order to meet these obligations. The company intends to sell the balance of the equipment from its recently discontinued Advanced Welding and Coating Services subsidiary as well as other machinery and equipment, inventory and other assets to meet the payment of its indebtedness as well as operating cash requirements. It is anticipated that manufacturing operations at the company's Tinton Falls, N.J. plant will be sharply curtailed as a result of these equipment liquidations. After the secured lenders have been paid, management will review the company's options but cautions that the actions being taken to satisfy these demands will probably result in the company's liquidation by no later than the end of the first quarter of 1994.
 In a related development, two directors of the company, Mr. Paul A. Stach and Mr. Roman Friedrich III resigned from the company's board on July 21, 1993. Mr. Stach has been a director since 1962 and Mr. Friedrich has been a director since 1992. The company has no current plans to replace these directors.
 -0- 7/23/93
 /CONTACT: Ira L. Friedman, president, or Richard T. Johnson, vice president, both of Metallurgical Industries, 908-542-5800/
 (MTALA)


CO: Metallurgical Industries, Inc. ST: New Jersey IN: MNG SU:

LD-WB -- NY085 -- 5335 07/23/93 17:20 EDT
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Publication:PR Newswire
Date:Jul 23, 1993
Words:310
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