Document M2OabVYm9B373Kgjp3Ln7Vk7

MEMORANDUM January 7, 1991 TO: FR: RE: ALL EMPLOYEES CAROL D. OLSON EAGLE-PICHER WE HAVE BEEN INFORMED THAT EAGLE-PICHER INDUSTRIES, INC. HAS DECLARED BANKRUPTCY THIS MORNING. PLEASE SEE ATTACHED NEWS RELEASE. Attachment For additional information contact J . HODMAN NALL (51S) 721-7010 ' BAG1B-PICSER VO RS0BGANX28 DNDEA CHAP** 11 Cincinnati# Ohio - January 7 -- Eagle-Pieher Industries, Inc. today announced that the Company and certain of its affiliates filed for reorganization under Chapter 11 of the U,s. Bankruptcy coda in the tf.s. Bankruptcy Court for the Southern District of Ohio# in Cincinnati# Ohio. Thomas Petry, Eagle-PicJaar Chairman, said that, "today's action will allow the Company to continue to operate successfully its diversified industrial products operations while addressing the present and future asbestos personal injury liability against the Company. Despite weakness in several sectors of the economy# the company's operations remain very healthy; it is expected that approximately $48 million in operating income will be reported for the fiscal year ended November 30, 1990. The decision to use Chapter 11 as the ultimate restructuring vehicle to resolve the asbestos liability was not something management took lightly. The liquidity crisis which precipitated the filing resulted from the need to satisfy the Company's immediate asbestos litigation liability through the sale of operating assets, and was triggered by the failure of the buyers for the Eagie-Picher Mat Division to fulfill a purchase contract. It is unfortunate that the Company was compelled to take this action, considering the progress that had been mads before Federal Judge Jack B. Weinstein in Hew York regarding the consolidation of all. present and future asbestos personal injury claims into a nationwide mandatary class action." in terms of the operations# Petry said that, "the Company's operations are open for business today# tomorrow, and for the future, customers can certainly expect the Company to meet all of its commitments, particularly the quality# service# and timely deliveriee that they have come to expect from Eagle-pieher operations. The Company would also like to reassure all of its suppliers, that future commitments to them will be fully honored on a timely basis. Looking to the future, the Company's mix of business is very sound and EagleHPicher sxpeets to emerge from reorganisation as a strong# viable Company having resolved the uncertainty of the asbestos personal injury litigation liability." 1/7/91 ##### TOTAL P.02