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REXENE EMERGES FROM BANKRUPTCY

 REXENE EMERGES FROM BANKRUPTCY
 DALLAS, Sept. 21 /PRNewswire/ -- Rexene Corporation (NYSE: RXN-WI)


announced that it emerged from bankruptcy late Friday as its plan of reorganization (the "plan") became effective.
 The plan benefits the company by extending the maturity of and reducing the aggregate principal amount of its outstanding indebtedness. The plan also reduces the interest rates and cash interest requirements payable on the indebtedness and creates a long-term capital structure that is more appropriate to the company's businesses and industry.
 Under the plan, the principal amount of the company's long-term debt has been reduced by approximately $66 million by replacing $403 million of debt, which was scheduled to mature in July 1992, with $337 million of debt that becomes due between 1999 and 2002. The company's annual cash interest requirements have also been reduced from approximately $74 million to a minimum amount of approximately $24 million through 1994.
 The plan provides that holders of the company's old senior and senior subordinated increasing rate notes will receive 92.5 percent of the company's common stock. Each share of common stock held by existing stockholders has been converted into 1/40 of one share of common stock of the reorganized company. Rexene has mailed transmittal materials to these stockholders with instructions on exchanging their stock certificates.
 Rexene's common stock continues to trade on the New York Stock Exchange on a "when issued" basis. The new notes are being issued pursuant to an exemption from registration. However, the notes will not be listed on a national securities exchange. The company also announced that it entered into an agreement for a $35 million working capital facility with Transamerica Business Credit Corporation.
 As previously reported, the company filed for bankruptcy protection in October 1991 after entering into an agreement-in-principle, which provided for a "pre-negotiated" plan of reorganization, with an unofficial committee of unsecured creditors. The original plan was modified in April 1992. The modified plan was overwhelmingly approved by noteholders and shareholders and confirmed by the Bankruptcy Court in July 1992. Under the terms of the plan, vendors with allowed pre-petition claims will be paid in full. Payments are scheduled to begin shortly.
 During the course of the company's Chapter 11 proceedings, Arthur L. Goeschel, a former Rexene director, was elected to serve as chairman of the board and a director. Goeschel was formerly executive vice president, Merck & Co., Inc. and president of Calgon Corporation, A Merck & Co. subsidiary. In addition, Andrew J. Smith was named chief executive officer of the company and was elected to serve as a director. Smith had previously served with Rexene for 15 years, until January 1991, most recently as president, chief executive officer and a director.
 Smith said, "The speed with which we emerged from Chapter 11 proceedings is testimony to the operating health of the company and the strength of its business plan. The bankruptcy was prompted by a lack of refinancing alternatives. We are proud of the fact that during the proceedings, Rexene customers experienced continued reliability of supply, thanks to the efforts of Rexene's employees and vendors. As a result, the company's operating performance has remained stable over the past 11 months and Rexene emerges from Chapter 11 with its customer base intact."
 Under the plan, the board of directors of the company has been expanded to include 10 members, six of whom are new members who bring additional chemical and financial industry expertise to the company. The board now consists of the following persons:
 Arthur L. Goeschel Chairman of the Board
 Rexene Corporation
 Andrew J. Smith Chief Executive Officer
 Rexene Corporation
 Lavon N. Anderson President and Chief Operating Officer
 Rexene Corporation
 Kevin N. Clowe Vice President
 AIG Capital Corporation
 D. George Harris Chairman, D. George Harris & Associates
 (owner of various chemical companies),
 former senior officer of SCM
 Corporation and Rhone-Poulenc Company
 William B. Hewitt Chairman and Chief Executive Officer
 Capital Credit Corporation
 Ilan Kaufthal Managing Director
 Wertheim Schroder & Company
 Fred P. Rullo Partner, The Freedom Group, former
 senior officer of ARCO Chemical
 Corporation
 Phillip Siegel Vice President
 Presidential Life Insurance Company
 Heinn F. Tomfohrde III Former President, Union Carbide
 Chemical Company and International
 Specialty Products, Inc.
 Goeschel said, "We're pleased to have a group of individuals on the board who bring such a depth of industry and financial expertise to our business. This experience strengthens our ability to serve Rexene customers and provide improved strategic direction for our future."
 Michael J. Grad, managing director of Wertheim Schroder & Co., commented, "The plan, while creating a viable capital structure for Rexene, also optimizes long-term recovery values for the noteholders. Moreover, the equity feature of the plan gives noteholders an added means of participating in the company's future success." Wertheim Schroder served as financial advisor to the official creditors committee.
 Rexene Corporation manufactures thermoplastic resins and petrochemical products including polyethylene and polypropylene resins and plastic films. Rexene, headquartered in Dallas, has manufacturing facilities in Texas, Wisconsin, Georgia, Delaware and Utah.
 REXENE CORPORATION
 Financial Highlights of Reorganization Plan
 (Dollars in millions)
 Before Plan After Plan
 Long Term Debt $403 $337
 Interest Rates
 (Sr./Sr. Sub)
 (as a percent) 17/18 9/10(A)
 Annual cash interest $74 $24(B)
 Maturity of Long Term
 Debt (Sr./Sr. Sub) 1992 1999/2002
 Existing stockholders'
 equity
 (percent of total
 equity) 100 7.5(C)
 (A) -- Initial interest rates. Rates will begin increasing in November, 1994.
 (B) -- Minimum cash interest payments through 1994, assuming the company pays interest in-kind on subordinated notes until Nov. 15, 1994.
 (C) -- Under the terms of the plan, holders of senior and senior subordinated notes receive 26 percent and 66.5 percent respectively of the company's outstanding common stock.
 -0- 9/21/92
 /CONTACT: Neil J. Devroy of Rexene Corporation, 214-450-9101/
 (RXN) CO: Rexene Corp. ST: Texas IN: OIL SU: RCN


TS -- NY015 -- 1483 09/21/92 08:41 EDT
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Date:Sep 21, 1992
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