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NAVISTAR AND PBGC REACH SETTLEMENT IN WISCONSIN STEEL LITIGATION

 NAVISTAR AND PBGC REACH SETTLEMENT IN WISCONSIN STEEL LITIGATION
 CHICAGO, Aug. 20 /PRNewswire/ -- Navistar International Corp. (NYSE: NAV) today announced that a settlement has been reached in litigation with the Pension Benefit Guaranty Corp.(PBGC) involving pension liability for Navistar's former Wisconsin Steel division.
 Under the terms of this settlement, valued at approximately $65 million, Navistar will pay the PBGC a combination of cash, equity and a secured note. The cash portion of the settlement is $20 million.
 Navistar, known as International Harvester until 1986, sold its Wisconsin Steel division to Envirodyne Industries in July 1977. Subsequent to the sale to Envirodyne in 1980, Wisconsin Steel Co. filed for bankruptcy, and its pension plans were terminated by the PBGC.
 In 1988, Navistar was held responsible for pension liabilities prior to the sale of its Wisconsin Steel division. These liabilities were assumed by the purchaser as part of the purchase price for the Wisconsin Steel division but were reimposed on Navistar following the bankruptcy of the purchaser. The amount of the liability was not determined during those proceedings.
 ''We've been working closely in a collaborative effort with the PBGC for some time now to resolve this situation,'' said Robert C. Lannert, executive vice president, chief financial officer and treasurer of Navistar International Transportation Corp. ''We're pleased that the matter has been resolved in a mutually-beneficial manner.
 ''The company has made it a priority to strengthen the funding of our pension plans to the fullest extent permitted without incurring tax penalties.
 ''We contributed more than one billion dollars to our pension funds in the mid-1980s,'' Lannert continued, ''the largest single investment this company has ever made.''
 Navistar International Transportation Corp. is the principal operating subsidiary of Navistar International Corp.
 -0- 8/20/92
 /CONTACT: Mary Moster, 312-836-3240, or Deborah Spak 312-836-3232, both of Navistar/
 (NAV) CO: Navistar International Corp. ST: Illinois, Wisconsin IN: AUT SU:


DC -- NY015 -- 1645 08/20/92 10:42 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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