CONVERSION INDUSTRIES INC. ANNOUNCES CHAPTER 11 FILING
PASADENA, California--May 19, 1995--
Conversion Industries Inc. (OTC) ("Conversion") announced that it has filed for
reorganization under Chapter 11 of the Federal Bankruptcy Code in the Central
District of California. Conversion was placed in default of its loan agreement with
CVD Financial Corp. ("CVD Financial") for failure to make an interest payment due
May 1, 1995. The outstanding balance of the loan as of April 30, 1995, was
$2,331,000 including interest and other costs due CVD Financial. CVD
Financial has also notified Conversion that it is in default on $4,875,000 of
loan guarantees on loans to three other borrowers of CVD Financial and has
demanded immediate payment of the entire balance of the loan and guarantees.
The management of Conversion has been negotiating with CVD Financial for an
extension of the May 1st date in anticipation of receiving sufficient funds to
cure the defaults under the loan agreement. CVD Financial has refused to
grant Conversion any relief and has additionally refused to discuss
Conversion's offer to pay off its entire loan balance in 60 days.
Accordingly, Conversion has no other choice than to seek protection under
Chapter 11 of the Federal Bankruptcy Code.
The management of Conversion has been actively seeking the necessary funds
to pay off the balance under the loan agreement and prevent any events of
default. Conversion has engaged an underwriter which is in the process of
attempting to raise funds, on a best efforts basis, which are to be available
to Conversion within 60 days. However, there can be no assurance that
Conversion will ultimately receive any funds.
As discussed at Conversion's annual meeting last December, a Chapter 11
filing has been a consideration for some time. Conversion's assets, which
were severely impacted by the trading halt and initiation of delisting
procedures by the American Stock Exchange on Oct. 11, 1994, have not yet
recovered value. The company believes that Conversion's principal assets,
primarily equity positions in Beta Well Service Inc., Statordyne Corp., North
American Recycling Inc. and Myriad Industries Inc., none of which is now
listed on an exchange, are all trading well below their underlying value and
potential for growth. Additionally, Conversion is currently litigating a law
suit filed by a former officer, two shareholder class action law suits, a law
suit filed by a former portfolio company (Bratcher Industries Inc.) and has
been delisted from the American Stock Exchange. The Securities and Exchange
Commission is also conducting a formal investigation of Conversion and several
of its present and former related companies.
A report on Form 10-QSB dated May 19, 1995 is being filed with the
Securities and Exchange Commission detailing the financial results for the
quarter ended March 31, 1995.
/CONTACT: David Rapaport of Conversion Industries, 818-793-7526/
First Interstate Bank to send helicopter to customers receiving Orange County
investment pool payouts to ensure they draw weekend interest
LOS ANGELES, California--May 19, 1995--Nearly 200 government agencies
will be handed long-awaited payouts from the Orange
County investment pool beginning at 9 a.m. Friday.
For those who are First Interstate Bank customers, a helicopter will be
posted on the roof of the bank's nearby Santa Ana Main office to fly the
checks to Los Angeles so customers can begin immediately earning interest on
their multi-million dollar deposits.
"It could mean a difference of over $30,000 in interest for the customer if
a $100 million check clears on Friday rather than Monday," said Susan Cotton,
First Interstate Bank's vice president of Government Services. "I even have a
client flying in from Northern California just to pick up the check and get it
To ensure the deposits receive the extra three days' interest, First
Interstate must process the checks at its downtown Los Angeles operations
center and get them to the Los Angeles check clearing exchange by its noon
deadline so the funds can be transferred and begin earning interest the same
First Interstate bankers will meet customers on-site as they pick up the
Orange County checks and help them immediately deposit them at the bank's
Santa Ana Main office.
Investors in the Orange County pool include cities, water districts, school
districts and other public agencies.
Los Angeles-based First Interstate Bank is the third-largest commercial bank
in California and the principal subsidiary of First Interstate Bancorp, the
14th-largest banking company in the nation and the second largest based in the
First Interstate banks operate 1,167 offices in 13 western states to serve
individuals, small businesses, middle market companies and selected large
corporations and financial institutions.
CONTACT: First Interstate Bank, Los Angeles
Rich Wyler, 213/614-4462 (office)