HERSHEY, Pennsylvania., Sept. 13, 1995 -- href="chap11.nuclear.html">Nuclear Support Services,
Inc. (Nasdaq: NSSI) provides the following summary of most
frequently asked questions and its responses in an effort to update
its investors and the public in regard to its recent entry into
Chapter 11 reorganization proceedings.
Question: Was the Company's underlying business showing
material deterioration since the Company's third quarter ending June
30, 1995, and prior to its bankruptcy filing on September 5, 1995?
Response: No. The Company's underlying business and overall demand
for its services were not deteriorating.
Question: Did pre-bankruptcy cash flow projections for the
Company show inadequate cash for debt service and operations?
Response: No. Company projections prepared in August showed
adequate cash for debt service and operations through calendar 1995
Question: What is the status of the suit against Westinghouse
and what is the effect of the bankruptcy filing on the Westinghouse
lawsuit? Response: The Company, as debtor-in-possession, can
continue to pursue the Westinghouse lawsuit. The suit is in the
pleading stage with discovery having been initiated. Aside from the
procedural information noted, it would not be advisable to comment
further on substantive matters of the lawsuit during its pendency.
Question: What is the response of NSSI's customers to its
bankruptcy filing? Response: The initial response of NSSI's
customers has been supportive.
Question: What is the Company's intent in filing the Chapter 11
bankruptcy proceedings and what is the time frame of these
proceedings? Response: The Company filed for Chapter 11 upon its
lenders' cessation of funding and in order to gain access to its
cash and continue operations. Promptly after filing for Chapter 11
protection, the Company was successful in negotiating a temporary
cash collateral agreement with its lenders allowing use of cash
payments made to it to be applied to continuing operations. The
Company is in the process of negotiating an extension of this cash
collateral agreement with its lenders and/or arranging debtor-in-
possession financing for the bankruptcy period. Management believes
that the Company's assets exceed its liabilities, and it is the
Company's intent to pay off all creditors in an orderly fashion. It
is the Company's further intent to reduce its debt, by selling
assets if necessary, and to negotiate new financing arrangements so
it can emerge from Chapter 11 reorganization as swiftly as possible.
Question: What is the time frame for the Company's Chapter 11
proceedings? Response: There can be no assurance as to time frame.
It is the Company's goal to emerge from Chapter 11 reorganization
proceedings before the end of the second quarter of its 1996 fiscal
year (i.e., the first calendar quarter of 1996).
/CONTACT: Ralph A. Trallo, President and COO of Nuclear Support
DENVER, Colorado--Sept. 13, 1995--href="chap11.rexon.html">REXON Inc.
(NASDAQ:REXNQ) Wednesday announced that it has filed a voluntary
petition for relief under the provisions of Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the District of
The filing is intended to allow the company to restructure its
financial obligations through a plan of reorganization.
The company has been seeking to raise needed working capital
through additional debt and/or equity financings. Despite REXON's
best efforts, it has been unable to complete such new financing or
obtain a new credit line with more favorable terms before
Due to its shortage of working capital and inability to obtain
new debt or equity financing, REXON's Board of Directors determined
that a Chapter 11 filing was the alternative that would allow the
company to continue in business and would be in the best interests
of its customers, creditors, shareholders and employees.
REXON is currently considering debtor-in-possession financing
proposals received by the company and is in the process of selecting
which proposal, if any, will be submitted for bankruptcy approval.
This positive development should allow the company to maintain its
present business and give it an opportunity to increase revenues and
return to profitability. A hearing is expected to be scheduled next
week for the court's approval of a proposed financing.
The bankruptcy filing is limited to REXON Inc., the U.S. parent
corporation, and its REXON/Tecmar Inc. subsidiary. REXON's foreign
subsidiary, REXON Singapore Pte. Ltd., intends to resume its
manufacturing operations with a minimum of disruption and
Robert C. Genesi, chairman and CEO, stated: "Our decision to
seek protection under Chapter 11 was a very difficult one. We have
made every reasonable effort to complete a $10 million financing
which, if successful, would have given us the opportunity to take
advantage of what we felt were good business prospects going
"However, despite those efforts (which included the sale of the
company's real estate in Solon, Ohio), the company could not
complete the financing within the time available to us."
Genesi added, "While we obviously preferred to avoid this
bankruptcy filing, we believe that in the long term this filing will
benefit our financial situation and allow us to begin to resume our
routine operations with a minimum of disruption. The new requested
line of credit will facilitate full payment to all suppliers for
goods and services that we receive after today's filing.
"We intend to promptly begin the preparation of a reorganization
plan which will be designed to strengthen REXON as a viable going
concern while also maximizing recovery for our creditors, vendors,
and shareholders. The continued strong support being shown by our
customers and creditors at this time is very much appreciated and we
fully believe we will be able to fulfill their trust and
The company also announced that Henry E. Oberle, president, COO,
and a director (who was located at the sold Ohio facility), and
Kanwai Rekhi, an independent director, have recently resigned their
positions with the company to pursue personal projects and other
REXON is a publicly owned company dedicated to data storage and
systems for the computer industry. It offers Wangtek 1/4 inch
cartridge (QIC) and Digital Audio Tape (DAT) drive product. Tecmar
brand solutions include QICVault, DATaVault, ProLine and ProLine CX.
Multimedia products are marketed under the Tecmar brand to major
OEMs and distributors.
CONTACT: REXON Inc.,
J. Embry, 310/355-0761