TCR_Public/950328.MBX BANKRUPTCY CREDITORS' SERVICE, INC.




KEENE CORPORATION ANNOUNCES STIPULATION TO RESOLVE CHAPTER 11 CASE



  NEW YORK, March 28, 1995 -- Keene
Corporation
(OTC" target=_new>http://www.secapl.com/cgi-bin/edgarlink?KEENQ">(OTC
Bulletin Board:
KEENQ) today announced that it has entered into a stipulation with its
Official Committed of Unsecured Creditors and the Court-appointed Legal
Representative of Future Claimants to file a consensual plan of reorganization
that would end Keene's Chapter 11 case.  Keene has been operating as a
debtor-in-possession since December 3, 1993 when it was forced to file for
protection under Chapter 11 of the Bankruptcy Code as a direct result of the
demands of thousands of asbestos-related lawsuits.


  Under the terms of the proposed consensual plan, worked out under the
supervision of William H. Webster,
the court-appointed Plan Examiner, Keene
will emerge from bankruptcy as a restructured company whose operations will
center on its existing subsidiary, Reinhold Industries, Inc.  Reinhold, whose
operations were not involved in Keene's Chapter 11 case, is a custom
manufacturer of advanced composite products for a variety of aerospace,
defense and commercial applications.  Up to 49% of the equity of the
restructured entity will be distributed to Keene's existing shareholders,
while the balance of the equity and substantially all of Keene's remaining
assets other than Reinhold will be distributed to a Creditors' Trust that will
be responsible for the resolution of all of Keene's present and future
asbestos-related personal injury and property damage claims.  The restructured
entity will get the benefit of a channeling injunction to protect its
operations from all asbestos-related claims.


  A formal plan of reorganization and related disclosure statement embodying
the terms of the stipulation are expected to be filed within the next 45 days.
Subject to acceptance by creditors and shareholders and confirmation by the
Bankruptcy Court, Keene's restructuring could be effective before the end of
this calendar year.


  /CONTACT:  Edward S.
Weisfelner
of
Berlack, Israels & Liberman,  
212-704-0100/