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Technology Stocks : Lance B's : Its A Beautiful Thing -- Ignore unavailable to you. Want to Upgrade?

To: Wayne Rumball who wrote (600)	11/4/1999 10:40:00 AM
From: LANCE B	Respond to of 4792

PHVP-EMERGING FROM CHAPTER 11 YESTERDAY'S NEWS COMTEX) B: PHILIP SERVICES CORP - Expects to Emerge from Chapter 11 B: PHILIP SERVICES CORP - Expects to Emerge from Chapter 11 Within 30 Days Toronto, Ontario, Nov. 03, 1999 (Market News Publishing via COMTEX) -- Philip Services Corp. announced that the U.S. Bankruptcy Court overseeing the Company's U.S. financial reorganization has indicated its approval of Philip's U.S. Plan of Reorganization (the "U.S. Plan"), subject to satisfactory completion of negotiations regarding Philip's exit financing facility. Other than finalizing the terms of the exit financing facility, the Judge has confirmed that the Company's U.S. Plan addresses the required elements to obtain final confirmation under Chapter 11 of the U.S. Bankruptcy Code. No objections remain outstanding from parties affected by the Company's U.S. financial restructuring. The Company expects to complete negotiations regarding its exit financing facility shortly and to emerge from U.S. bankruptcy protection on schedule within thirty days. "On behalf of our more than 10,000 employees we are pleased that the Court has accepted the principle terms of our U.S. Plan," said Tony Fernandes, President and CEO. "We will emerge a healthy corporation and a strong competitor in both the metals and industrial services markets. Through the hard work of our employees and the ongoing support of our clients and suppliers, we have a sound platform from which to build a profitable future." Philip expects to have access to exit financing in excess of US$125 million, in addition to proceeds from the previous sale of assets, which will provide the Company with sufficient resources to support its ongoing working capital requirements. Under the Company's Plan approximately US$1 billion in existing debt will be converted into US$250 million in senior secured debt, US$100 million in convertible payment in-kind debt and 91% of the shares of the restructured company. Holders of impaired unsecured debt, who voted over 90% in favor of the U.S. Plan, will receive a pro rata share of US$60 million in unsecured payment in-kind notes and 5% of the common shares of the restructured company. Under Philip's Amended Canadian Plan of Reorganization, substantially all the assets of Philip Services Corp. and its Canadian subsidiaries will be transferred to new Canadian subsidiaries of Philip Services (Delaware), Inc. Upon implementation of the U.S. Plan, Philip Services (Delaware), Inc. will issue and distribute 24 million new shares of common stock on a pro rata basis to its secured lenders, unsecured creditors, existing shareholders, class action claimants and other equity claimants, as set forth in the Company's U.S. Plan. Shareholders of record of the Company on the date of implementation of the U.S. Plan will receive their pro rata share of 480,000 common shares of the restructured company. There are currently approximately 131 million common shares of the Company issued and outstanding. Philip has applied for a U.S. listing on the NASDAQ National Market, following a decision made by the review committee of the New York Stock Exchange to proceed with the de-listing of the Company's securities. Philip's lenders, as majority shareholders, will appoint a new Board of Directors upon Plan implementation, at least two of who will be members of the existing Board of the Company. Philip Services is an integrated metals recovery and industrial services company with operations throughout the United States, Canada and Europe. Philip provides diversified metals services, together with by-products management and industrial outsourcing services, to all major industry sectors. -0- TEL: (905) 540-6658 Lynda Kuhn, Vice President Public Affairs TEL: (905) 540-6658 Lynda Kuhn, Vice President Public Affair Philip Services Corp. ______________________________ (c) Corporate Dissemination Services Inc. All rights reserved. Tel:(604) 689-1101 Fax:(604) 689-1106