SOUTHFIELD, Mich., April 22 /PRNewswire-FirstCall/ --
Federal-Mogul Corporation (OTC Bulletin Board: FDMLQ) has filed a proposed
Disclosure Statement with the U.S. Bankruptcy Court in Wilmington, Delaware in
its Chapter 11 reorganization case. The Court must approve the proposed
Disclosure Statement, which provides additional details to the Plan of
Reorganization, before Federal-Mogul can solicit votes on the Plan. The Plan
of Reorganization was filed with the Court on March 6, 2003.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000525/DETH025LOGO )
An official hearing date on the proposed Disclosure Statement has not yet
been announced by the Court.
The Plan will only become effective after a vote of various classes of
creditors with the approval of the Court. Key elements of the Plan provide
for:
-- Creation of a 524(g) trust for the benefit of present and future
asbestos personal injury claimants, which will assume all of the company's
obligations to those claimants;
-- The creation of new common shares for the reorganized company that will
be distributed to the trust (50.1%) and to the noteholders (49.9%);
-- The access by the trust to insurance coverage of the company;
-- One or more distributions to U.S. and U.K. trade creditors of which the
percentage ratio has not been determined;
-- The restructuring of approximately $1.6 billion in claims of the
Pre-Petition Senior Secured Lenders into a combination of 6.5-year maturity
Senior Secured Term Loans and 11-year maturity Junior Secured PIK Notes.
Federal-Mogul will also be filing a United Kingdom Scheme of Arrangements
to keep the U.K. Administration process in parallel with the U.S. Bankruptcy
process.
Federal-Mogul is a global supplier of automotive components and sub-
systems serving the world's original equipment manufacturers and the
aftermarket. The company utilizes its engineering and materials expertise,
proprietary technology, manufacturing skill, distribution flexibility and
marketing power to deliver products, brands and services of value to its
customers. Federal-Mogul is focused on the globalization of its teams,
products and processes to bring greater opportunities for its customers and
employees, and value to its constituents. Headquartered in Southfield,
Michigan, Federal-Mogul was founded in Detroit in 1899 and today employs
47,000 people in 24 countries. For more information on Federal-Mogul, visit
the company's web site at http://www.federal-mogul.com .
This press release contains forward-looking statements as defined in
Section 21E of the Securities Exchange Act of 1934, including statements about
future business operations, financial performance and market conditions. Such
forward-looking statements involve risks and uncertainties inherent in
business forecasts as further described in our filings under the Securities
Exchange Act. Actual results could differ materially as a result of known and
unknown risks and uncertainties and other factors, including factors relating
to Federal-Mogul's Chapter 11 filing; filing of Administration in the United
Kingdom, ability to achieve all required approvals of a Plan of
Reorganization; claims relating to legal, environmental or tax matters
discussed in our public filings which may affect the Plan; and other risks,
uncertainties and factors disclosed in Federal-Mogul's most recent reports on
Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission
(SEC) which may affect the company's business or financial condition in a way
that may affect the Plan. We undertake no obligation to update any forward-
looking statement.
SOURCE Federal-Mogul Corporation
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PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
Related links:
http://www.federal-mogul.com
Company News On-Call:
http://www.prnewswire.com/comp/306225.html
CONTACT:
Kimberly A. Welch, media, +1-248-354-1916,
Jim Fisher, media, +1-248-354-9809, or Janet Halpin, investors,
+1-248-354-8847, all of Federal- Mogul Corporation
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