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EXHIBIT 20.1
CONTACT: MARK STANDEFER
773-933-8336
DAN DREXLER
773-933-8272
ALLIED PRODUCTS CORPORATION FILES VOLUNTARY PETITION
FOR REORGANIZATION UNDER CHAPTER 11 OF BANKRUPTCY CODE
CHICAGO, Oct. 2, 2000 -- Allied Products Corporation announced today that
it has filed a voluntary petition for reorganization under Chapter 11 of the
Bankruptcy Code. The petition was filed with the United States Bankruptcy Court
for the Northern District of Illinois.
In conjunction with the filing, Allied Products has received a commitment
for up to approximately $4.5 million in debtor-in-possession (DIP) financing
from General Motors Corporation to fund its operation and enable it to pay its
post-petition trade and employee obligations.
Commenting on the filing of the voluntary petition, Richard A. Drexler,
Chairman, President and Chief Executive and Financial Officer of Allied Products
stated: "As we acknowledged in our Form 10Q filing for the second quarter of
2000, Allied Products faced a severe liquidity problem. The Company's directors
and management have concluded that, at this time, there is no option other than
seeking protection under the bankruptcy laws.
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Page 2 -- Chapter 11 Filing
Mr. Drexler further stated that the DIP financing provided by General
Motors, if approved by the court, is expected to allow the Verson division to
continue to work on certain key contracts during the restructuring process.
"With the support of our suppliers and the hard work of our valued
employees, we hope to earn the continued loyalty of our customers and see that
Verson remains a viable competitor in its industry," said Mr. Drexler
Allied Products consists of the Verson division, which manufactures large
metal forming presses and the Verson Standard Press Division, which produces
small metal forming presses.
For more information about the Company go to WWW.ALLPROD.COM.
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