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EXHIBIT 99.1
[Waxman Industries Letterhead]
NEWS RELEASE
WAXMAN INDUSTRIES, INC. ANNOUNCES
COURT CONFIRMATION OF ITS COMPREHENSIVE RESTRUCTURING PLAN
REORGANIZATION PLAN TO BE EFFECTIVE ON NOVEMBER 16, 2000
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Bedford Heights, Ohio -- November 15, 2000 - Waxman Industries, Inc. (OTCBB
-WAXX), a holding company for businesses supplying specialty plumbing and other
products to the U.S. repair and remodeling market, reported that its
comprehensive Joint Plan of Reorganization, which the Company filed with the
United States Bankruptcy Court on October 2, 2000, was confirmed by the Court on
November 14, 2000. The Company's direct and indirect operating subsidiaries,
which have their own credit facility, were not a part of the filing and have
operated under normal business conditions during this period.
The Joint Plan was developed over the past year with a committee of the
Company's Deferred Coupon Note holders, the only impaired creditors. The Joint
Plan received the approval of the holders of approximately 97% of the Deferred
Coupon Notes. Under the Joint Plan, which will become effective on November 16,
2000, the Company will distribute approximately $39 million through its Waxman
USA subsidiary, in full settlement of the Deferred Coupon Notes. On September
29, 2000, the Company received $92.5 million in proceeds from the sale of
7,025,807 shares of Barnett Inc., which it utilized to retire all of Waxman
USA's $36 million in Senior Notes, reduce its bank facility by $10 million,
paying or reserving for payment $1.3 million in taxes and $6 million in interest
due its Deferred Coupon Note holders, with the remaining $39 million being
placed in a segregated account for the satisfaction of the Deferred Coupon Notes
under the Joint Plan.
"We are very pleased to announce the conclusion of the Company's comprehensive
financial restructuring plan that eliminated all of the $35.9 million of Senior
Notes, $92.8 million of Deferred Coupon Notes and reduced the Company's working
capital debt to approximately $10 million. We are optimistic that these actions
will translate into new business opportunities and restore the confidence of our
business partners and employees in the future of the Company" said Armond
Waxman, President and Co-Chief Executive Officer.
Waxman Industries, Inc. is a leading supplier of specialty plumbing and other
products to the repair and remodeling market in the United States. Through its
wholly-owned subsidiaries, Consumer Products, Medal of Pennsylvania, Inc., WAMI
Sales and its Orient Group, TWI and CWI, the Company
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distributes its products to a wide variety of large national and regional
retailers, other independent retailers and wholesalers in the United States.
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Statements on this Press Release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 that
are based on the beliefs of the Company and its management. When used in this
document, the words "anticipate," "believe," "continue," "estimate," "expect,"
"intend," "may," "should," and similar expressions are intended to identify
forward-looking statements. Such statements reflect the current view of the
Company with respect to future events and are subject to certain risks,
uncertainties and assumptions, including, but not limited to, risks associated
with currently unforeseen competitive pressures and risks affecting the
Company's industry, such as decreased consumer spending, customer concentration
issues and the effects of general economic conditions. In addition, the
Company's business, operations and financial condition are subject to the risks,
uncertainties and assumptions which are described in the Company's reports and
statements filed from time to time with the Securities and Exchange Commission.
Should one or more of those risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein.
FOR INFORMATION, CONTACT:
Waxman Industries, Inc.: (440) 439-1830
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Armond Waxman, President
Mark Wester, CFO
