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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: donjuan_demarco who wrote (65133)	12/27/2000 2:56:28 PM
From: JHP	Read Replies (1) \| Respond to of 122087

well if the company survives what do you think the shares will be worth? So FMO with a cash flow of 6 billion has three years to turnaround . Two stories in todays Wall street Journal about FMO situation and an interview with Miller. good read. regards john

To: donjuan_demarco who wrote (65133)	1/3/2001 8:53:54 AM
From: JHP	Respond to of 122087

HOME RUN TIME regards john FMO 3 Wednesday January 3, 7:59 am Eastern Time Press Release SOURCE: Federal-Mogul Corporation Federal-Mogul Successfully Amends and Expands Bank Credit Agreement SOUTHFIELD, Mich., Jan. 3 /PRNewswire/ -- Federal-Mogul Corporation (NYSE: FMO - news) announced the successful completion of its Fourth Amended and Restated Credit Agreement, which provides $350 million in additional financing to its pre-existing $1.7 billion senior credit facilities. Federal-Mogul has also solidified its European financing with committed lines targeted to approximately $200 million. (Photo: newscom.com ) ``We are very pleased to expand our credit lines by $550 million in a very difficult market,'' said Robert S. (Steve) Miller, chairman and chief executive officer. ``With the new agreement, we have significantly increased our financial flexibility and eased the covenant restrictions on our existing credit facilities. The covenant relief should provide great assurance for our customers, creditors and employees as it allows Federal-Mogul to continue its preeminent role in providing customer solutions.'' The amended and restated credit facility provides for a $200 million supplemental revolving credit line and a $150 million term loan. The senior lenders, led by JP Morgan Chase as arranger, agreed to loosen the financial covenant ratios beginning in the fourth quarter of 2000. The company retained the ability to reinvest $500 million of the first $700 million in net proceeds from asset sales. Federal-Mogul agreed to grant to the lenders providing new funds a first priority security interest in its U.S. property, plant and equipment; inventories; intellectual property and general intangibles; and unencumbered accounts receivable. Pre-existing lenders were given a second security interest in these assets. The pricing on the pre-existing $1.7 billion facility was increased by 50 basis points. Pricing on the supplemental revolving credit line is LIBOR plus 300 basis points, and the new term loan is priced at LIBOR plus 375 basis points. The amended and restated credit facility expires in February, 2004. ``We have been able to provide ourselves with financial flexibility for the intermediate term,'' said Miller. ``We have bought ourselves some time. We can now focus on implementing our six global initiatives for operational improvement while working toward a more successful litigation environment or a legislative solution for our continuing asbestos situation.'' Headquartered in Southfield, Michigan, Federal-Mogul is an automotive parts manufacturer providing innovative solutions and systems to global customers in the automotive, light trucks, heavy duty, farm and industrial markets. The company was founded in 1899. For more information on Federal-Mogul, visit the company's web site at federal-mogul.com . Federal-Mogul's press releases are available by fax through Company News On-Call, call 800-758-5804, ext. 306225. Information in this press release contains forward-looking statements, which are not historical facts and involve risk and uncertainties. Actual results, events and performance could differ materially from those contemplated by these forward-looking statements including, without limitations, the cost and timing of implementing restructuring actions, conditions in the automotive components industry, certain global and regional economic conditions and other factors detailed from time to time in the company's filings with the Securities and Exchange Commission. Federal-Mogul undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. SOURCE: Federal-Mogul Corporation