FMO will triple Jan 3 when they announce new loan!!! imho
FMO Press Release
SOURCE: Federal-Mogul Corporation
Federal-Mogul Sets Analysts Meeting for January 3, 2001
SOUTHFIELD, Mich., Dec. 20 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO - news) will host an analyst meeting in New York on Wednesday, January 3, 2001 from 10:00 a.m. to 11:30 a.m. EST to discuss the following items: the status of the Company's bank credit facilities; an updated view of its asbestos situation; and the strategic global initiatives under way for operating performance improvement.
(Logo: newscom.com )
The meeting will be web cast live on Federal-Mogul's site, www.federal-mogul.com . Please sign on to this site fifteen minutes prior to the scheduled start time. (In case of difficulty in signing on to this site, fmftp.fmo.com has been established as a back-up site for this presentation.)
In addition to the live web cast there will be a listen-only conference call. In order to receive the conference call dial-in number, domestic callers must RSVP to 800-289-0579 and international callers must RSVP to 719-457-2550. The confirmation code to RSVP is 430775. Please dial into the conference call fifteen minutes prior to the scheduled start time.
A recording of this call will be available from 1:30 P.M. EST Wednesday, January 3 through Tuesday, January 9, 2001. To access this recording dial 719-457-0820 (for both domestic and international callers), then enter 430775 as the confirmation code.
The web cast will be retained on Federal-Mogul's web site through January 31, 2001.
Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative systems and solutions to global customers in the automotive, small engine, heavy duty, agricultural and industrial markets. The company was founded in 1899. Visit the Company's web site at www.federal-mogul.com for more information. Federal-Mogul's press releases are available by fax through Company News On-Call, 800-758-5804, ext. 306225.
SOURCE: Federal-Mogul Corporation
Chase Raising Federal-Mogul Loan to Deter Bankruptcy
New York, Dec. 15 (Bloomberg) -- Chase Manhattan Corp. is trying to raise $550 million for Federal-Mogul Corp., to keep the maker of Champion spark plugs from filing for bankruptcy, said a person familiar with the matter.
Chase arranged a $1.75 billion credit line in 1998 for the Southfield, Michigan-based auto-parts maker and would be among the biggest losers if mounting asbestos claims push the company to seek court protection from creditors.
If Federal-Mogul declines the additional credit or if Chase fails to find other lenders, the company that traces its history to 1899 could follow other targets of asbestos suits, Armstrong World Industries Inc. and Owens Corning, into bankruptcy.
``I don't see how the company can turn around without getting the asbestos problems behind them. The best way to do that would be through bankruptcy,'' said Premila Peters, a fixed-income analyst with KDP Investment Advisors.
For Chase, writing off its exposure to Federal-Mogul would compound an earnings slowdown. Earlier this week, the No. 2 U.S. bank said a capital markets slump and higher-than-expected merger costs with J.P. Morgan & Co. would cause it to miss estimates ``substantially.''
The new $550 million in loans would add to the earlier credit line, for which Federal-Mogul provided no collateral. Chase is asking the company's other U.S. lenders to put up $200 million, institutional investors to inject $150 million and European banks to add a further $200 million, the person said.
``It's no mystery that we're looking to renegotiate our bank credit agreement, and we hope to have that wrapped up by year's end,'' said spokeswoman Kimberly Welch. She declined to comment on the Chase agreement or terms in the agreement.
Asbestos
Federal-Mogul's shares have plunged 91 percent this year and its earnings fell 99 percent in the third quarter as more than $6 billion of acquisitions in 1998 failed to pay off and sales of car- replacement parts slowed.
Most of Federal-Mogul's asbestos claims stem from T&N Plc, a U.K.-based maker of gaskets, seals and other products it bought in 1998. Early in the 20th century, T&N was an asbestos supplier for automotive brakes and the shipbuilding industry. T&N's involvement in the shipbuilding industry is prior to 1972, when they got out of the business, said spokesman Steve Feeny.
The auto-parts maker also has asbestos liability because of its October 1998 acquisition of Cooper Industries Inc.'s Cooper Automotive unit because the Abex and Wagner brands used asbestos in making auto parts and for industrial products. Federal-Mogul also has some asbestos liability because of its 1998 acquisition of Skokie, Illinois-based Fel-Pro Inc, mostly involving gaskets and packing products, the company said in a recent Securities & Exchange Commission filing.
As an incentive to lenders, Federal Mogul, the world's largest maker of engine seals and bearings, would add collateral to the new loan, giving banks ownership of its assets should it still file for bankruptcy, the person said.
Banks refused to renew a $450 million credit line for Armstrong because the largest vinyl-flooring maker wouldn't give up collateral. Two weeks ago, the company filed for bankruptcy, saying it was engulfed by asbestos claims.
Should Chase fail to raise the new money, Federal-Mogul ``will have little choice but to seek bankruptcy protection sooner rather than later,'' said Peters.
As of September 30, 2000, Federal-Mogul provided a total reserve for all of its subsidiaries and businesses with potential asbestos liability of about $1.3 billion.
Federal-Mogul shares fell 6 cents to $2.00.
Dec/15/2000 16:39 ET
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