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REXENE ANNOUNCES RECEIPT OF RESTRUCTURING PROPOSAL

 REXENE ANNOUNCES RECEIPT OF RESTRUCTURING PROPOSAL
 DALLAS, March 30 /PRNewswire/ -- Rexene Corporation (NYSE: RXN)


today announced it had received an alternative restructuring proposal from Texas Olefins Company, a privately-owned Houston, Texas petrochemical manufacturing company ("Texas Olefins").
 Under the proposal, which contains numerous uncertainties (including but not limited to uncertainties regarding significant tax consequences) and conditions, a newly-formed affiliate of Texas Olefins would purchase all manufacturing facilities, real estate, contracts and other non- current assets of the company for $50 million in cash and a five year $200 million promissory note payable in quarterly installments of $10 million per quarter over the next five years. The promissory note, which would be guaranteed by Texas Olefins, would bear interest at the rate of 10 percent per annum. In addition, the proposal provides for the purchase of the company's inventories at the lower of cost or market. Texas Olefins would also pay, subject to certain adjustments (including the offset of cumulative losses), amounts equal to 50 percent of the company's annual net income (up to a maximum of $17.5 million per year) for each of the first five years.
 Under the Texas Olefins proposal, the company would retain all of its liabilities, including its obligations under $403 million of outstanding senior and senior subordinated notes, as well as its receivables and cash balances. The $50 million cash, $200 million promissory note and the proceeds from the inventory, together with the company's cash on hand and accounts receivables, would be available to satisfy all existing liabilities. Under the applicable provisions of the Bankruptcy Code, the company would be required to make provisions for its liabilities which could substantially delay distributions to creditors generally. The company and its advisors, together with the creditors' committee and its advisors, are studying the Texas Olefins proposal with a view toward determining whether it could provide recoveries to the company's constituents higher than the previously- announced agreement in principle reached with its noteholders in October 1991. The Texas Olefins proposal is subject to a number of conditions, including the satisfactory completion of due diligence.
 In a related matter, the company announced that it had been advised that the proposal previously made by Thai Petrochemical Industry Co., Inc. was withdrawn on March 27, 1992. The company and the creditors' committee continue to study the proposal by Cambridge Capital Fund, L.P., an affiliate of Baker & Nye, a New York money management firm.
 The company is continuing to work diligently to complete the documentation of its existing agreement in principle for a Bankruptcy Court disclosure statement hearing on April 6.
 Rexene Corporation, through its principal operating subsidiary, Rexene Products Company, manufactures thermoplastic resins and petrochemical products including polyethylene and polypropylene resins and plastic film. Rexene, headquartered in Dallas, operates manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 -0- 3/30/92
 /CONTACT: Neil J. Devroy of Rexene Corp., 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: SU: RCN


TQ -- NY082 -- 2987 03/30/92 15:14 EST
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Publication:PR Newswire
Date:Mar 30, 1992
Words:498
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