Huntway Partners, L.P. Commences Unitholder Solicitation To Approve Financial Restructuring And
NEWHALL, Calif., Oct. 11, 1996 - Huntway Partners, L.P. (NYSE: HWY) announced today that the
Securities and Exchange Commission had completed its review of the Consent Solicitation and
Disclosure Statement detailing Huntway's financial restructuring plan and that Huntway had commenced
the consent solicitation. The Consent Solicitation and Disclosure Statement describes the restructuring
plan which reduces total debt outstanding by $68,775,000 and reduces accrued unpaid interest by
$2,368,000 as measured at September 30, 1996. In exchange, the plan provides for the issuance of
13,786,404 million new units to its lenders and warrant holders which will increase total units
outstanding from 11,556,250 to 25,342,654. In addition, the plan provides that current options to purchase
546,059 common units will remain outstanding, provides for the issuance of new options to acquire
3,415,850 common units and provides for the cancellation of current options to purchase 1,022,000
common units and the cancellation of warrants to acquire 3,340,757 current units. As a result, on a
fully-diluted basis, total units outstanding will increase initially from 16,465,066 to 29,304,563 while
total debt and accrued interest will decline by a combined $71,143,000 as measured at September 30,
1996. The plan also provides for certain potential issuances of units and options in the future.
As previously announced, the financial restructuring plan has been approved by four of its five senior
lenders, representing approximately 86% of Huntway's senior debt, as well as the two holders of junior
debt. However, the Company has been unable to secure the consent of one holder of its senior debt
(representing 14% of the outstanding senior debt). Accordingly, the Company has determined that to
realize the benefits of the financial restructuring plan it will pursue confirmation of the plan through the
filing of a prepackaged plan of reorganization with the U.S. Bankruptcy Court. In order to complete the
financial restructuring on the terms described above, the Company is seeking (pursuant to the Consent
Solicitation and Disclosure Statement) the written consent of its unitholders and certain other classes of
creditors and equity interest holders to accept the prepackaged plan. This consent is being sought prior to
the commencement of a case under Chapter 11 of the U.S. Bankruptcy Code, which the Company intends
to commence upon receipt of the required acceptances.
Commenting on the financial restructuring, Juan Forster, President and Chief Executive Officer said,
"Since early 1995, the Company has been diligently pursuing a financial restructuring that would have the
benefits of significantly improving the Company's capital structure through the reduction of debt and
annual interest expense while limiting dilution to our existing unitholders. This plan achieves those
objectives as evidenced by debt and accrued interest as measured at September 30, 1996, declining
$71,143,000 while fully diluted units outstanding increase, by only 12,839,497 units. The Company
believes this conversion to equity at an equivalent price of $5.16 per unit is beneficial to current
unitholders. In addition to reducing debt and annual interest expense, the financial restructuring plan
requires no cash principal or interest payments in 1996 and provides for quarterly repayment
requirements in future years which better fit the seasonality of our business. Finally, the prepackaged plan
provides for the continuing and timely payment in full of all Huntway's obligation to suppliers, other trade
creditors and employees under normal trade terms."
The Company indicated that it is mailing documents to its unitholders who were holders of record as of
the close of business on September 16, 1996. The solicitation period will expire at 5 p.m., New York
time, on Thursday, November 7, 1996, unless extended. The Information Agent for the solicitation is
MacKenzie Partners, Inc. (800-322-2885).
Huntway Partners, L.P, owns and operates two refineries at Wilmington and Benicia, California, which
primarily process California crude oil to produce liquid asphalt for use in road construction and repair,
as well as smaller amounts of gas oil, naphtha, kerosene distillate and bunker fuels. The company's third
refinery, at Coolidge, Arizona, has been shut down since 1993.
The company's common units are traded on the New York Stock Exchange under the symbol HWY.
SOURCE Huntway Partners, L. P. /CONTACT: Warren J. Nelson, Executive Vice President and Chief
Financial Officer of Huntway Partners, 805-286-1582; Thomas E. Siebert of Siebert & Associates,
Howtek Announces 1996 Third Quarter Results
HUDSON, N.H., Oct. 11, 1996 - Howtek, Inc., (Nasdaq-NNM:HOWT) today announced results of its
operations for the third quarter ended September 30, 1996. The Company recorded sales in the third
quarter of $2,851,000, a decrease from the $4,303,000 recorded in the third quarter of 1995. The
Company recorded a third quarter loss of $1,750,000 or ($0.22) per share, compared to a loss of
$1,162,000 or ($0.15) per share recorded in the third quarter of 1995.
The Company attributed the decrease in sales in the third quarter of 1996 to continuing weakness in the
graphic arts market and slower than expected ramp-up of sales of its new medical imaging products. As a
consequence of the continued weakness in the graphic arts market, the Company has taken steps to
decrease spending by approximately 25% in the fourth quarter of 1996. The payroll expenses associated
with this adjustment are included in the third quarter results.
David R. Bothwell, the Company's CEO stated that, "With the approximate 25% reduction in spending
levels for the fourth quarter of 1996, Howtek looks forward to improved results with anticipated growth
both in the graphic arts and medical imaging product lines in the future."
Howtek was founded in 1984 by Robert Howard. Howtek designs, engineers and manufactures, for sale
throughout the world, flatbed and drum scanners for the graphic arts and desktop publishing markets,
densitometers for the life sciences market, and film digitizers for the medical imaging market.
Consolidated Statement of Operations
Three Months Ended Nine
Sept. 30, Sept. 30,
1996 1995 1996
Sales $2,850,506 $4,303,024 $8,160,530
Cost of Sales 2,283,529 2,939,590 7,041,302
Gross Profit 566,977 1,363,434 1,119,228
Operating Costs 2,155,116 2,407,838 5,968,523
--- --- --- 2,662,632
Interest Expense 161,601 117,165 465,331 298,994
Tax provision (1,749,740) (1,161,569) (5,314,626)
--- --- --- ---
Net Income (Loss)
after Income Tax
Provision (1,749,740) (1,161,569) (5,314,626)
Net Income (Loss)
Per Share ($0.22) ($0.15) ($0.67)
Outstanding 7,965,903 7,941,415 7,964,777
SOURCE Howtek, Inc./CONTACT: Connie Webster, Director, Corporate Services of Howtek,
BIRMINGHAM STEEL ANNOUNCES JOINT VENTURE WITH MITSUI
BIRMINGHAM, Ala.--Oct. 11, 1996--Birmingham Steel Corporation today announced that one of its
affiliates has signed an agreement with an affiliate of Mitsui & Co., Ltd. forming a joint venture in
southern California to collect, process and sell scrap. The joint venture intends to utilize certain assets
currently owned by the bankruptcy estate of Hiuka America Corporation and certain of Hiuka's affiliates.
The parties are negotiating a definitive agreement to effect the purchase of assets. The asset purchase is
contingent upon completion of a definitive agreement, the receipt of certain regulatory and court
approvals and final determination of issues with the Hiuka bankruptcy trustee and Hiuka's affiliates. The
transaction is expected to close before the end of calendar year 1996. The purchase price and details of
the transaction were not disclosed.
The affiliates of Birmingham Steel and Mitsui each own a 50% interest in the joint venture. The joint
venture will acquire certain assets of Hiuka located at Berth 118 (Port of Long Beach) and certain assets
of the following Hiuka affiliates in southern California: All-Ways Recycling Company (San Diego);
Weiner Steel Corporation (Montebello); and B&D Auto & Truck Salvage (El Monte). The four scrap
facilities have an annual capacity to collect and process approximately 1.0 million tons of scrap per year.
The joint venture plans to utilize the facility at the Port of Long Beach to export scrap.
Robert A. Garvey, Chairman and Chief Executive Officer of Birmingham Steel, commented, "We are
pleased to join with Mitsui to establish scrap operations on the West Coast. The joint venture will not
only provide access to the scrap export markets, but could also serve to facilitate the export of other steel
products. Also, the venture will be a potential source of scrap for the domestic market." Garvey
continued, "We believe that formation of this business relationship with Mitsui will provide the
opportunity for the two companies to work together in the development of future strategic projects."
Birmingham Steel operates steel mini-mills producing steel reinforcing bar and merchant products, and
specializes in manufacturing high-quality steel bar, rod and wire products from semi-finished billets at its
American Steel & Wire subsidiary. The common stock of Birmingham Steel Corporation is traded on the
New York Stock Exchange under the symbol "BIR."
CONTACT: Birmingham Steel Corporation John Casey, 205/970-1238
Creditors' Committee Joins in Agreed Plan of Reorganization for I.C.H. Corporation
MINNEAPOLIS, Oct. 11, 1996 - On Thursday, Oct. 10, 1996, the Official Committee of Unsecured
Creditors of I.C.H. Corporation (the "Creditors' Committee"), together with the Debtor, I.C.H.
Corporation ("ICH"), and the Official Committee of Equity Security Holders of I.C.H. (the "Equity
Committee") filed a Joint Plan of Reorganization for I.C.H. and two of its subsidiaries, SWL Holding
Corporation and Care Financial Corporation. The Plan was accompanied by the Debtor's preliminary
Disclosure Statement, which is expected to be supplemented and completed prior to a hearing on its
approval scheduled for October 31, 1996. The filings were made in the Bankruptcy Court for the Northern
District of Texas, Dallas Division, which is presiding over the I.C.H. chapter 11 case.
Under the Joint Plan, all cash and other assets of I.C.H., other than certain retained assets will be
transferred to a creditors' trust in exchange for and in full settlement of all unsecured claims, including the
claims of holders of I.C.H.'s 11-1/4% senior subordinated notes due 1996 and 11-1/4% senior
subordinated notes due 2003. Reserves are to be set aside for payment in full of administrative and
priority claims. I.C.H. will be reorganized for the benefit of the former equity holders with certain
retained assets valued by the Debtors at approximately $10.5 million.
The Joint Plan also includes two proposed settlements: one with Tenneco under which Tenneco will pay
$18.5 million to I.C.H. and cancel a $21.9 million I.C.H. note, and the second with the Shaw Group (a
group of former controlling stockholders of I.C.H.) under which the Shaw Group will withdraw proofs of
claims in excess of $5.75 million, modify transferability restrictions imposed on I.C.H.'s economic
interest in CFSB Corporation and in return will, subject to certain conditions, receive a release.
After bankruptcy court approval of a disclosure statement, I.C.H. and the Committees currently expect to
solicit votes on the Joint Plan. Effectiveness of the Joint Plan is subject to obtaining the requisite votes of
classes of impaired claims against and interests in I.C.H. and the entry of a final order of confirmation by
the bankruptcy court. Alex Lagetko of CS First Boston Corp., a member of the Creditors' Committee,
concurs that "the filing of the consensual plan of reorganization in agreement with the Equity Committee
and the Debtor, incorporating settlements with Tenneco and the Shaw Group, and the prior settlement with
the IRS, represents a substantial milestone in the I.C.H. reorganization process. The plan establishes the
framework for maximizing bondholder recoveries via the distribution through the trust of a substantial
amount of cash expected by year 1997, as well as an orderly disposition of the remaining assets, the bulk
of which may be monetized within a twelve (12) month period."
As a result of the Joint Plan filing, the Creditors' Committee intends to withdraw its previous Creditors'
Committee Plan of Orderly Liquidation, filed on August 26, 1996.
SOURCE Official Committee of Unsecured Creditors of I.C.H. Corp. /CONTACT: Jeff Werbalowsky or
Eric Siegert, both of Houlihan Lokey Howard & Zukin, 612-228-2910/
Mohawk Industries, Inc. Announces Letter of Intent to Acquire Certain Assets of Diamond Rug & Carpet
CALHOUN, Ga., Oct. 11, 1996 - Mohawk Industries, Inc. (Nasdaq-NNM: MOHK) today announced it
has signed a letter of intent with Diamond Rug & Carpet Mills, Inc., Diamond's shareholders and a
representative of Diamond's trade creditors to acquire certain assets of Diamond. The proposed purchase
price will be a maximum of $43 million in cash, subject to adjustment based on the level of inventory at
closing. Mohawk will also purchase selected facilities owned by Diamond's principal shareholders.
The acquisition will be accomplished through a prepackaged or other plan of reorganization under
Chapter 11 of the United States Bankruptcy Code. The acquisition is subject to the completion of due
diligence, the execution of a definitive agreement, other customary conditions and approvals and the entry
of a final order of confirmation of a plan of reorganization by the bankruptcy court acceptable to Mohawk.
Commenting on the proposed asset acquisition, David L. Kolb, Chairman and Chief Executive Officer of
Mohawk stated, "This affords our Company an excellent opportunity. The acquisition of these selected
assets of Diamond will be complementary to Mohawk's current manufacturing capabilities. These assets
will facilitate entry into a new product line of cut pile polypropylene products and a significant expansion
of our polyester product line. The acquired assets will help ensure Mohawk is further able to continue
with improvements in manufacturing efficiencies. In addition these assets provide the Company with
significant increased production capacity to support continued strong growth. This is another key step in
achieving the low cost position in the industry."
Mohawk is a leading producer of woven and tufted broadloom carpet and rugs for residential and
commercial applications. Mohawk designs, manufactures and markets carpet in a broad range of colors,
textures and patterns and is widely recognized through its premier brand names, some of which include
"Aladdin," "Alexander Smith," "Bigelow," "Eden," "Galaxy," "Harbinger," "Helios," "Horizon,"
"Karastan," "Mohawk" and "Mohawk Commercial." Mohawk offers a broad line of washable accent and
bath rugs through Aladdin and area rugs through Karastan and American Rug Craftsmen. Mohawk markets
its products primarily through retailers and commercial dealers.
SOURCE Mohawk Industries, Inc. /CONTACT: John D. Swift, Chief Financial Officer,
Mohawk Industries, Inc., 706-624-2247/ (MOHK)