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Old September 24th 03, 04:37 PM
Frank Todd K3EKO
 
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Default ROHN Files for Chapter 11 Protection...

ROHN Files for Chapter 11 Protection
September 16, 2003

World Headquarters
6718 W. Plank Rd.
Peoria, IL 61604 USA
Ph: 309-697-4400
FAX: 309-697-5612


FOR IMMEDIATE RELEASE



For Further Information:
Horace Ward
President and Chief Executive Officer
(309) 633-6886


ROHN INDUSTRIES, INC. FILES FOR CHAPTER 11 PROTECTION;
$9.5 MILLION DEBTOR-IN-POSSESSION FINANCING SECURED;
BOARD MEMBERS RESIGN

PEORIA, IL, September 16, 2003 — ROHN Industries, Inc., (OTCBB: ROHN),
(the "Company") a provider of infrastructure equipment to the
telecommunications industry, announced today that the Company and five
of its direct and indirect subsidiaries have filed voluntary petitions
for Chapter 11 relief in the United States Bankruptcy Court for the
Southern District of Indiana (the "Bankruptcy Court").

The Company also announced that, concurrent with the Chapter 11 filing,
it has entered into a $9.5 million debtor-in-possession ("DIP") line of
credit with the lenders that are party to the Company's Amended and
Restated Credit Agreement, subject to the approval of the Bankruptcy
Court, which will include funds that will be rolled forward from the
Company's current credit facility. Subject to the provisions of the
Bankruptcy Code, the Company remains in possession of its assets and
properties, and continues to operate its business. The Company said that
the objective of the Chapter 11 proceeding is to maximize recovery to
creditors by facilitating an orderly sale of assets. The Company is
currently in discussions with an unrelated third party regarding a
proposed sale of the assets of the Company.

Upon the filing of the bankruptcy petition of the Company, but following
the approval by the Board of Directors of the Chapter 11 filing, Stephen
Gorman and Jordan Roderick each have resigned from the Board of
Directors of the Company. Currently, Horace Ward, the Chief Executive
Officer of the Company, is the only remaining director of the Company.

Commenting on today's announcement, Mr. Ward said, "Our immediate goal
is to stabilize the Company's financial situation and utilize the
Chapter 11 process to enable the Company to conduct normal business
operations as the Company works to complete a sale transaction."

The Company has retained the Indianapolis law firm of Ice Miller to act
as its legal counsel in the bankruptcy proceedings. The Company has also
retained Silverman Consulting, a national turnaround consulting firm.

About the Company

The Company is a manufacturer and installer of telecommunications
infrastructure equipment for the wireless industry. Its products are
used in cellular, PCS, radio and television broadcast markets. The
Company’s products include towers, poles, related accessories and
antennae mounts. The Company also provides design and construction
services. The Company has a manufacturing location in Frankfort, IN
along with offices in Peoria, IL and Mexico City, Mexico.


--------------------------------------------------------------------------------

Statements in this press release include “forward-looking statements”
within the meaning of the Securities Exchange Act of 1934, the Private
Securities Litigation Reform Act of 1995 and other related laws, and
include, but are not limited to, those statements relating to sales and
earning expectations, expected demand and other statements of outlook.
The Company’s actual results and effects could differ materially from
those currently anticipated in our forward-looking statements. Factors
and risks that could cause such differences include, but are not limited
to: wireless and fiber optic communications industry capital spending;
the ability of the Company’s customers to secure adequate financing;
elections by customers to terminate or delay previously placed orders;
the effects of competition, particularly on pricing and margins; the
Company’s implementation of our growth objectives in foreign markets;
the Company’s indebtedness, which could restrict its operations, making
it more vulnerable to adverse economic conditions and making it more
difficult for us to implement its business strategy; liquidity problems
that confront or may confront the Company; the Company’s inability to
obtain bonding required for certain customer contracts or potential
contracts; liabilities arising from an engineering problem with the
Company’s internal flange poles and a testing and repair program
undertaken by the Company in connection with that problem; unexpected
problems and costs the Company may encounter or incur in consolidating
our manufacturing operations at its facilities in Frankfort, Indiana;
the Company’s Commonwealth of Pennsylvania construction project staying
on its currently anticipated schedule; and regulatory changes affecting
the industry in which the Company operates. The cautionary statement
contained in Exhibit 99.1 to the Company’s Form 10-K for the year ended
December 31, 2002 is incorporated herein by reference. Forward-looking
statements are given as of the date of this release and the Company is
not undertaking any duty or obligation to update these statements
publicly as a result of new information, future events or otherwise.



--
73

Frank K3EKO

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