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REXENE CORPORATION ANNOUNCES NOTEHOLDER AND STOCKHOLDER APPROVAL OF PLAN OF REORGANIZATION

 REXENE CORPORATION ANNOUNCES NOTEHOLDER AND STOCKHOLDER
 APPROVAL OF PLAN OF REORGANIZATION
 DALLAS, June 22 /PRNewswire/ -- Rexene Corporation (NYSE: RXN) announced today that its plan of reorganization (the plan) had been overwhelmingly approved by the holders of its existing senior and senior subordinated notes as well as its common stockholders and that it had obtained a sufficient number of votes to confirm the plan on a consensual basis. The company announced that holders of $236,860,000 and $104,255,000 in principal amount of existing senior and senior subordinated notes, respectively, had approved the plan. This represents 99 percent and 100 percent respectively, of the dollar amount voting. In addition, 93 percent of the number of shares of common stock voted, approved the plan.
 Andrew J. Smith, chief executive officer of the company, stated, "We are pleased that our noteholders have reviewed our operating and financial plans and agree that Rexene is well positioned to meet its obligations in the future. Although a few hurdles remain in our restructuring effort, we are confident the company will emerge from bankruptcy soon."
 Rexene also announced that a trial to resolve a class action lawsuit arising out of amendments made to the company's stock bonus plan in 1987 and 1988 (the Izzarelli Claims) has commenced today in The United Sates District Court in Midland, Texas. In that connection, the company has agreed to reschedule a Bankruptcy Court hearing on confirmation of the plan, originally scheduled for June 24, until July 7, 1992, to permit the Izzarelli trial to be completed before the hearing. If the plan is confirmed by the Bankruptcy Court on July 7, Rexene could emerge from Chapter 11 proceedings by the end of July or early August.
 Rexene further announced that it is attempting to resolve a claim filed by a committee representing certain of its former stockholders that arises out of the acquisition of Rexene in 1988. Rexene also filed proceedings seeking to subordinate the claims of the Izzarelli claimants and the former stockholders to the claims of all other creditors. If these claims are not satisfactorily resolved and Rexene is successful in subordinating them through adversarial proceedings or pursuant to an amendment to the plan of reorganization, current stockholders could lose all of their equity interest in Rexene.
 The company also announced that the principal documentation relating to the new senior and senior subordinated notes to be issued by reorganized Rexene had been substantially completed and filed with the Bankruptcy Court. The company is now evaluating the proposals of potential lenders concerning a post-confirmation working capital facility and expects to sign a commitment letter prior to July 7.
 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- 6/22/92
 /CONTACT: Neil J. Devroy of Rexene, 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: OIL SU: RCN


SM -- NY064 -- 2510 06/22/92 15:35 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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