Exhibit 99.1
ATHEY PRODUCTS CORPORATION NEWS RELEASE
WAKE FOREST, N.C., December 8, 2000/PRNewswire/-
Athey Products Corporation (Nasdaq: ATPC - news), a leading manufacturer of
street sweeping and material handling equipment, announced that a voluntary
petition seeking relief pursuant to Chapter 11 of the Bankruptcy code was filed
with the U.S. Bankruptcy Court for the Eastern District, Raleigh Division, on
December 8, 2000. The Company will continue operations under the protection of
the Bankruptcy Court, and will devote its efforts to the manufacture and
shipment of its products while a reorganization plan is developed. The Company
elected to seek such protection due to cash-flow constraints imposed by its
secured lender. The Court has set a hearing date for the Company's initial
motions on December 14, 2000. While the reorganization process proceeds, the
Company has retained and will receive assistance from a turnaround management
firm, Nachman Hays Consulting, Inc., which will evaluate the strategic options
available to the Company and so advise the Board.
This news release contains forward-looking statements that are made pursuant to
the safe harbor provisions of the Securities Reform Act of 1995. Such statements
involve risks and uncertainties that may cause results to differ materially from
those set forth in those statements. In addition to these factors, the economic,
competitive, governmental, technological and other factors identified in the
Company's filings with the Securities and Exchange Commission, including but not
limited to, its quarterly report on Form 10Q for the quarter ended September 30,
2000, could affect the forward- looking statements contained in this news
release.
