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NATIONAL GYPSUM COMPANY AND AANCOR HOLDINGS, INC. FILE JOINT PLAN OF REORGANIZATION

 NATIONAL GYPSUM COMPANY AND AANCOR HOLDINGS, INC.
 FILE JOINT PLAN OF REORGANIZATION
 DALLAS, Texas, Jan. 15 /PRNewswire/ -- National Gypsum Company and its parent, Aancor Holdings, Inc., today filed a joint plan of reorganization and disclosure statement with the U.S. Bankruptcy Court for the Northern District of Texas, Dallas, it was announced by Peter C. Browning, chairman and chief executive officer. On October 28, 1990, National Gypsum and Aancor filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code.
 Under the proposed plan, if approved by creditors and confirmed by the Court, National Gypsum will be reorganized into two separate entities. The gypsum wallboard business and all related assets will be transferred to a new National Gypsum Company. The new company will issue $100 million in debt, approximately $216 million in participating convertible preferred stock, as well as common stock and warrants to National Gypsum Company's general unsecured creditors, primarily consisting of bondholders and trade creditors. The Austin Company, a National Gypsum subsidiary, would continue to operate under a reorganized company which would also retain certain rights to future insurance proceeds and operate for the benefit of both present and future asbestos-related claimants. Under the plan, new National Gypsum Company would not be subject to liability for present or future asbestos-related claims. Stockholders of Aancor Holdings, Inc. will receive nominal, if any, distributions under the plan and no continuing equity interest in either the new National Gypsum Company or the reorganized company.
 "At the outset of Chapter 11, our new management team established an objective of completing the reorganization process as quickly and responsibly as possible while taking the necessary actions to optimize our ongoing business activities during an extremely difficult economic period. During the past 15 months, we have made important progress in executing our operating strategies and taking necessary steps to develop a reorganization plan involving very complex issues. We believe that the plan we have filed is feasible and confirmable. The proposed plan recognizes the seniority of certain classes of creditors and is based on a responsible capital structure consistent with current and forecasted economic conditions for the company and the construction industry. Furthermore, we believe that filing a plan now is important to ensure continuous progress toward confirmation," Browning stated.
 Before the plan may be sent to creditors, the Court must approve the disclosure statement. The Court has not yet set a hearing to consider such approval. If the statement is approved, the plan and disclosure statement will be mailed to creditors for their vote. If accepted by the required majorities and confirmed by the Court, the plan will be binding on National Gypsum and Aancor creditors and will permit the companies to emerge from Chapter 11.
 On Wednesday, Jan. 15, 1992, the Court approved an extension through July 15, 1992, of the exclusivity period during which the debtor can file a plan of reorganization and obtain acceptances. However, the order modified exclusivity to allow the National Gypsum creditors committees, jointly or separately, to file a plan of reorganization and solicit acceptances during the same period. Furthermore, the Court ordered that in the event that both the debtor plan and the Committee plan are filed with their disclosure statements on or before March 15, 1992, the Court will schedule a joint hearing on the adequacy of the disclosure statements. However, should only one party file a plan and disclosure statement by March 15, 1992, the Court may schedule a hearing of that disclosure statement.
 -0- 1/15/92
 /CONTACT: Allan V. Cecil, Vice President-Public Affairs, National Gypsum Company, 704-365-7227/ CO: National Gypsum Company; Aancor Holdings, Inc. ST: North Carolina, Texas IN: PAP CST SU:


DF -- CH009 -- 0273 01/15/92 18:37 EST
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Publication:PR Newswire
Date:Jan 15, 1992
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