HOUSTON--December 1, 1995--Drypers
Corporation (Nasdaq:DYPR) today reported that it has received two
separate commitments from lending institutions each for a $20
million financing facility. The financing facility would replace
Drypers' existing $15.0 million revolving credit facility. Drypers
also reported that it is in discussions with its existing senior
lender to continue a $1.8 million term loan. Additionally, Drypers'
two largest equity holders have agreed to provide additional capital
in an aggregate amount of at least $3.6 million. Concurrent with
these developments, Drypers has continued to negotiate with the
holders of the Company's 12 +% Senior Notes. The Company has been
informed by Holders of a substantial majority of the Notes that they
have given instruction to the Trustee of the Notes not to accelerate
the debt and to take no action at this time with respect to the
unpaid semiannual interest payment, which was due November 1, 1995,
and for which the payment grace period expired December 1, 1995.
Both the credit facility and the capital investment are subject to
further negotiation of conditions that are yet to be met. If
certain of these negotiations or negotiations with the Noteholders
are unsuccessful, as previously stated in a press release issued on
August 4, 1995, the Company may be required to seek protection under
the federal bankruptcy laws.
Walter V. Klemp, Chairman and Co-Chief Executive Officer,
noted, "We are pleased to have passed this milestone in our
negotiations for a financing package which will help Drypers meet
its financial obligations. We believe the commitments from our
lending institutions show confidence in the improving trends in
Drypers' business. In the four-week period ended November 4, 1995,
Drypers grocery retail market share increased to 5.6%, continuing a
steady improvement in recent months from a low of 4.1%."
Mr. Klemp added, "In addition to our strengthening market
share, we are further encouraged by recent improvements in our
operating environment. Our largest nationally- branded competitor
recently announced price increases on its diaper products,
signalling an end to the price war we have been struggling through.
Additionally, we have recently had price reductions from our
suppliers of fluff pulp, signalling price weakness in that
commodity. We believe that both of these events bode well for
Drypers' ongoing performance."
Drypers Corporation manufactures and markets disposable baby
diapers and related products under the Drypers brand name. The
Company's products are sold through grocery stores and mass
merchants throughout the United States, Latin America and other
international markets. The Company also produces price value
branded and private label diapers and related products.
CONTACT: Drypers Corporation,
Walter V. Klemp, 713/682-6848
Lynn Morgen/Howard Zar/Melissa Garelick;
Press: Stacy Berns, 212/850-5600
DALEVILLE, Ind., Dec. 4, 1995 -- href="chap11.burlington.html">Burlington Motor
Holdings, Inc. and its subsidiaries today filed in the state of
Delaware for protection and reorganization under Chapter 11 of the
U.S. Bankruptcy Code. The filing is part of the Company's
previously announced planned restructuring of its existing debt.
Burlington, which provides truck load transportation services
throughout the continental United States and to and from Mexico and
Canada, also announced that it obtained a $50 million line of credit
to be provided by Foothill Capital Corporation. GE Capital will
continue to provide a line of credit pending approval of the
Foothill facility. These lines of credit will provide the Company
with the cash and liquidity it needs to continue to operate the
business as usual and pay suppliers at normal levels as it prepares
a reorganization plan.
The Company's operations will not be affected by the
reorganization filing and Burlington will continue to provide the
highest level of service to its customers. Employee wages and
benefits will also continue uninterrupted.
In an effort to expedite its reorganization, Burlington has been
engaged in discussions with its secured creditors and holders of its
publicly traded 11-1/2% Senior Subordinated Notes Due 2003 to change
existing amortization schedules and reduce existing debt by
converting certain debt to equity. In addition, and upon certain
conditions, the Company's shareholders are also willing to
contribute additional capital to improve the liquidity of the
business. The Company anticipates filing a Disclosure Statement and
Plan of Reorganization outlining the terms of the restructuring in
the near future.
The Company believes that the above efforts will be concluded
expeditiously, resulting in a substantially stronger balance sheet.
It is simultaneously pursuing an operational restructuring plan
which will enable the Company to continue its high level of customer
service and to attain profitability.
/CONTACT: James Overley of Burlington Motor Carriers, 317-378-4119,
or Sam Witchel of Scharff, Witchel & Co., 212-983-1060/