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REXENE CORPORATION ANNOUNCES REVISED PLAN OF REORGANIZATION

 REXENE CORPORATION ANNOUNCES REVISED PLAN OF REORGANIZATION
 DALLAS, April 28 /PRNewswire/ -- Rexene Corporation (NYSE: RXN) announced today that it has agreed with the Official Committee of Unsecured Creditors to modify its proposed Chapter 11 Plan of Reorganization. The modifications eliminate the $15 million cash dutch auction/redemption for the subordinated notes. They also eliminate approximately $16.7 million and $8.6 million of new notes to have been issued to senior and subordinated holders, respectively, principally in lieu of interest during the Chapter 11 case. In exchange for these concessions, additional common stock will be issued to the senior holders and to the subordinated holders so that when the Plan of Reorganization becomes effective, senior holders will own 26 percent of the company's outstanding common stock and Subordinated holders will own 66.5 percent.
 Under the modified agreement, in addition to the common stock, the $253 million of existing senior notes will be exchanged for an equal amount of new senior notes and the $150 million of existing subordinated notes will be exchanged for $84.375 million of new subordinated notes. Also, accrued interest of approximately $11.7 million in cash and $3.1 million in cash will be paid to the senior and subordinated holders, respectively. The maturity, sinking fund requirements for, and the interest rates payable on the new notes remain unchanged from the previous agreement. Interest on the new notes will accrue from July 1, 1992. The company's existing common stockholders will retain 7.5 percent of the company's common stock under the modified Chapter 11 Plan of Reorganization.
 The company also announced that it had ended preliminary discussions with Texas Olefins Company, a privately owned Houston petrochemical manufacturing company, concerning an alternative restructuring proposal previously made by it. The company had requested Texas Olefins to consider restructuring its proposal in order to eliminate or reduce numerous uncertainties (including significant tax concerns) and conditions. Texas Olefins informed the company last week that it was unwilling to restructure or otherwise modify its original proposal.
 The company also announced that it plans to file its modified Plan of Reorganization and the related disclosure statement with the Bankruptcy Court in time for the Bankruptcy Court hearing, currently scheduled for Wednesday April 29, 1992, to determine whether the Disclosure Statement complies with the Bankruptcy Code's disclosure requirements. Upon approval of the disclosure statement by the Court, the company will solicit the approval of the holders of the existing senior and subordinated notes as well as the common stockholders. A Bankruptcy Court hearing to confirm the company's Chapter 11 Plan or Reorganization has been scheduled for June 24, 1992. If the plan is confirmed at that hearing, Rexene could complete its reorganization and emerge from bankruptcy in July, 1992.
 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, has manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 -0- 4/28/92
 /CONTACT: Neil J. Devroy of Rexene Corporation, 214-450-9101/
 (RXN) CO: Rexene Corporation ST: Texas IN: OIL SU: RCN


TS -- NY032 -- 3654 04/28/92 10:11 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
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