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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: accountclosed who wrote (2106)	1/4/2001 8:27:27 AM
From: John Pitera	Read Replies (2) \| Respond to of 2850

I've been watching FMO perk up, it went up before Christmas on a downday, and TRW was up 10% on a day when they issued a warning. Investors were happy that FMO has some new bridge financing. Wednesday January 3 4:44 PM ET Federal-Mogul Expands Credit Line By Debra Sherman CHICAGO (Reuters) - Auto parts maker Federal-Mogul Corp. (NYSE:FMO - news) on Wednesday said it secured $550 million in additional credit to buy itself time to address an estimated $900 million in asbestos claims over the next four years. The Southfield, Mich.-based maker of Champion spark plugs, Wagner brakes and other auto parts said it added a $200 million credit line and a $150 million loan to an amended $1.7 billion credit facility. Federal-Mogul said it also gained about $200 million in European financing. The company, which has suffered a series of downgrades by top credit rating agencies in recent months, was upbeat during a meeting with analysts in New York, promising the additional credit will allow it to recover as it works through asbestos litigation. Many companies, including Owens Corning (NYSE:OWC - news) in October and Armstrong Holdings Inc. (NYSE:ACK - news) in December, have filed for bankruptcy protection to manage asbestos liability. Shares in Federal-Mogul, which plunged 79 percent over the past 12 months amid solvency concerns, closed up 3/4, or 24 percent, at 3-13/16, the highest price since mid-October. ``With the new agreement, we have significantly increased our financial flexibility and eased the covenant restrictions on our existing credit facilities,'' said Robert Miller, a former outside director who stepped in as interim chief executive in September after Dick Snell resigned abruptly. ``Obviously, this doesn't solve all of our problems...but people can stop worrying about whether we're about to tip over,'' he told reporters. However, Miller -- the main negotiator in the loan bailout of Chrysler Corp. in the 1980s who's known on Wall Street as a turnaround specialist -- warned the company will likely post a loss substantially wider than the 25 cent per share guidance it gave Wall Street analysts because of declining volume. But the newly amended credit facility provides liquidity for about three years and will allow it to work ``toward a more successful litigation environment or a legislative solution for our continuing asbestos situation,'' Miller added....