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Exhibit 99.1
THE LOEWEN GROUP INC.
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(TSE: LWN) NEWS
Media Contact: James Hoggan & Associates Inc.
Trace Acres or Anna Wright
(604) 739-7500 local 255 or 261
Email [email protected]
Email [email protected]
Investor Contact: (800) 347-7010
FOR IMMEDIATE RELEASE
THE LOEWEN GROUP FILES PLAN OF REORGANIZATION
- ENTERS FINAL STAGE OF CHAPTER 11/CCAA PROCESS
- KEY NEW BUSINESS INITIATIVES COMPLETED
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VANCOUVER, BC - November 14, 2000 - THE LOEWEN GROUP INC. (TSE: LWN), today
announced that it has filed a plan of reorganization and disclosure statement
for itself and numerous subsidiaries with the U.S. Bankruptcy Court for the
District of Delaware.
THE REORGANIZATION PLAN
The plan contemplates that the parent corporation for the reorganized group of
companies will be a Delaware corporation. The reorganized parent corporation
will issue and distribute to creditors new Common Shares, which will be publicly
traded. The plan also provides for distributions of cash and/or new debt
securities to certain creditors.
The plan and disclosure statement describe the proposed structure and business
operations of the reorganized company, and provide a proposed schedule of
creditor recoveries. The plan treats the Company's bank credit agreements,
Series D, E, 1, 2, 3, 4, 5, 6, 7 Senior Notes, and the Passthrough Asset Trust
Securities as secured debt under the Collateral Trust Agreement, entitled to, on
a pari passu basis, the benefits of the collateral held by the collateral
trustee. The plan does not provide for any distribution of value to common and
preferred shareholders.
The plan and the disclosure statement will be subject to approval by the
Bankruptcy Court, and the plan will be subject to a vote by certain classes of
creditors. Upon receiving final court approval for a plan of reorganization, the
Company will emerge from Chapter 11/CCAA protection. The Company anticipates
that certain creditors of the Company are likely to challenge the proposed plan.
Commenting on the filing, John S. Lacey, Chairman of Loewen, said: "On June 1,
1999 - less than 18 months ago - Loewen and a number of its subsidiaries in the
United States and Canada
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filed for creditor protection pursuant to the provisions of Chapter 11 of the
U.S. Bankruptcy Code, and the Companies Creditors' Arrangement Act in Canada. We
understand that this cross-border filing was the most complex filing of its kind
in North American corporate history. From the outset, the goal of the Company
has been to stay focused on serving our customers while developing a plan of
reorganization.
"The Company took the initiative in seeking to have established a unique
cross-border protocol between the United States and Canadian Bankruptcy Courts.
This protocol has been highly successful in moving this complex reorganization
case towards an earlier than usual filing of a reorganization plan."
Mr. Lacey added: "The filing of our emergence plan is a major and positive
milestone for this Company. The plan calls for a `new Loewen' re-engineered with
the goal of becoming a superior operating company and a leader in the fields of
funeral and cemetery service. The steady improvements in our core operations
over the past months reflect the success of key changes we have made and how
well our people have performed under challenging circumstances."
BUSINESS INITIATIVES
Mr. Lacey stated that: "in addition to completing a plan of reorganization, an
equally important priority for the Company over the past year and a half has
been a complete review of all aspects of how Loewen does its business, with the
goal of both bottom line and consumer service improvements. Major changes have
been made and further key initiatives are in progress. Already completed have
been: a complete restructuring of Loewen's field organization; the establishment
of new market management teams; a re-design of product offerings; improvements
to the timeliness and effectiveness of Loewen's financial reporting systems; and
significant reductions in general and administrative expenses.
"Key initiatives in progress include: a re-engineering of Loewen's
administrative processes; consolidation of Loewen's administrative offices;
completion of a plan to simplify Loewen's corporate and subsidiary structure;
major investments in information technology; modernization of the marketing and
purchasing functions; further reductions in administrative expenses; a
disposition process for locations that do not fit within Loewen's new business
plan; and development of a growth platform for the future."
Mr. Lacey concluded: "Looking back over the past months, I am impressed by the
way in which Loewen's employees have embraced change and have committed
themselves to reinventing our business. I wish to personally thank our CEO, Paul
Houston, the management team and all of our people for a job well done. We can
all now look forward to the challenges and excitement following emergence and to
taking a leadership role in our industry.
"We recognize that certain creditors may wish to challenge aspects of the plan
related to the treatment of Loewen's collateral trust agreement debt as pari
passu but we are hopeful that the plan confirmation process will proceed
expeditiously so that the `new Loewen' may at the earliest practical opportunity
emerge from Chapter 11/CCAA and commence normal day-to-day operations."
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Today, the Company is filing a Form 8-K with the Securities and Exchange
Commission. Copies of the plan and disclosure statement are exhibits to this
Form 8-K. The form 8-K and these exhibits are available on the Commission's
Internet site located at http://www.sec.gov.
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Based in Vancouver, The Loewen Group Inc. owns or operates more than 1,100
funeral homes and more than 400 cemeteries across the United States, Canada, and
the United Kingdom. The Company employs approximately 13,000 people and derives
approximately 90 percent of its revenue from its US operations.
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Safe Harbor: Certain statements contained in this press release, including but
not limited to information regarding the future economic performance and
financial condition of the Company, the plans and objectives of the Company's
management and the Company's assumption regarding such performance and plans,
are forward-looking in nature. Actual results could differ from those described
in the forward looking statements due to a number of risk factors including
uncertainty concerning the extent and outcome of challenges to the proposed
plan; the timing and substance of court rulings with respect to the plan; the
extent to which the Company is successful in implementing its business plan; and
general economic, regulatory and competitive conditions. Additional information
concerning important factors that could cause actual results to differ from the
forward-looking information contained in this release is included in the
Company's publicly filed quarterly and annual reports.
