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NATIONAL GYPSUM COMPANY EXITS CHAPTER 11

 DALLAS, July 9 /PRNewswire/ -- National Gypsum Company (NASDAQ-NMS: NGCO) has officially emerged from Chapter 11 bankruptcy following today's ruling by the U.S. Bankruptcy Court for the Northern District of Texas, Dallas, that the company's plan of reorganization was substantially consummated effective July 1, 1993, it was announced by Peter C. Browning, chairman and chief executive officer. The Court had previously confirmed National Gypsum's plan on March 9.
 As called for under the plan, National Gypsum's wallboard operations have been transferred to a new National Gypsum Company. The new company has debt consisting of $100 million principal amount of senior notes, with interest payable at 10 percent per annum for a term of 10 years and stockholders' equity consisting of 20 million shares to be issued, estimated by the Court to have a book value of approximately $250 million or $12.50 per share. In addition, the company will issue warrants for approximately 2.234 million shares of common stock at an exercise price of $14.50 per share.
 The company also announced that it had completed a $75 million revolving working capital facility with General Electric Capital Corporation. The company anticipates that the facility will be used initially for letters of credit only.
 Creditors will receive a combination of either cash, common stock, senior notes or warrants. Creditors receiving cash and whose claim is not disputed can expect to receive payment by check in a few weeks. Notices will soon be sent to other creditors detailing the type and amount of new securities to be received. It is anticipated that actual distribution of new securities to creditors will begin within the next several weeks and may take several months to complete.
 The common stock and warrants will be traded publicly on the NASDAQ National Market System under the symbol "NGCO". Both securities are currently trading on a "when issued" basis. A market is also anticipated for the senior notes, although debt will not be traded on NASDAQ.
 The old operating company, which has been renamed Asbestos Claims Management Corporation, has retained the stock of The Austin Company (a wholly owned engineering and construction services subsidiary), cash and historical insurance policies, all for the benefit of asbestos claimants.
 The Court previously ruled that current asbestos bodily injury claimants will be channeled to a settlement trust and permanently enjoined from making any claims against the new National Gypsum Company. The Court also ruled that it will channel future bodily injury claims to the trust and approved provisions of the company's plan under which all outstanding asbestos property damage claims will be settled by the trust for approximately $137 million.
 National Gypsum also said that effective immediately its corporate headquarters are being relocated from Dallas, Texas to Charlotte, N.C., where it will be consolidated with the company's gypsum wallboard division.
 "In view of the size and complexity of our case, we are delighted to have completed the Chapter 11 process in approximately two and one-half years," Browning stated. "Judge Steven A. Felsenthal is to be commended for his expeditious handling of this difficult case while ensuring all parties a full and fair hearing," he added.
 "With the Chapter 11 process behind us, an appropriate capital structure in place and a court-approved resolution of asbestos claims, the new National Gypsum Company is well positioned to be a formidable competitor in the gypsum wallboard industry," Browning said.
 National Gypsum has been represented during the Chapter 11 proceedings primarily by Johnson & Gibbs, Dallas, its lead bankruptcy legal counsel; Hoyle Morris & Kerr, Philadelphia, counsel for asbestos- related issues; Cadwalader, Wickersham & Taft, Washington, D.C., environmental counsel; and Donaldson, Lufkin & Jenrette, New York, investment banking.
 National Gypsum filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Oct. 28, 1990. The company filed its plan of reorganization on Jan. 15, 1992, and voting on the plan concluded Nov. 20, 1992, with a vast majority of creditor classes approving the plan. Confirmation hearings commenced on Dec. 4, 1992 and concluded on March 9, 1993 when the reorganization plan was confirmed.
 National Gypsum Company is a fully integrated manufacturer and supplier of products and services used worldwide in building and construction, with primary emphasis on Gold Bond brand gypsum wallboard and related products.
 -0- 7/9/93
 /CONTACT: Allan V. Cecil, V.P. - Corporate Communications and Investor Relations, National Gypsum Company, 704-365-7227/
 (NGCO)


CO: National Gypsum Company ST: North Carolina, Texas IN: CST SU:

MM-SB -- CH002 -- 9914 07/09/93 12:31 EDT
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Date:Jul 9, 1993
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