<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 27,
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1994 (September 22, 1994)
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Eljer Industries, Inc.
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(Exact name of registrant as specified in charter)
Delaware 1-10181 75-2270874
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation) No.)
17120 Dallas Parkway, Dallas, Texas 75248
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (214) 407-2600
Not applicable
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(Former name or former address, if changed since last report)
<PAGE>
Item 5 Other Events
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On September 22, 1994, Eljer Industries, Inc. (the
"Company"), announced that the Bankruptcy Court for the Eastern
District of Texas has entered an order extending by 90 days the
period during which United States Brass Corporation ("U.S.
Brass"), an indirect, wholly-owned subsidiary of the Company, has
the exclusive right to file a plan of reorganization in its
federal bankruptcy proceeding. Under the Court's order, U.S.
Brass now has until December 22, 1994, to file such plan.
U.S. Brass continues to assert that all Qest polybutylene-
related claims, including claims of codefendants Shell Chemical
Company and Hoechst Celanese Corporation ("Celanese"), against
U.S. Brass, the Company and its wholly-owned subsidiary, Eljer
Manufacturing, Inc. ("Eljer Manufacturing") and Household
International, Inc. ("Household"), the former parent of the
Company, are stayed under the Bankruptcy Code because the claims
are property of U.S. Brass or seek recovery from assets that are
property of U.S. Brass. Celanese has recently asserted that the
Company and Eljer Manufacturing are directly liable for damages
arising from the manufacture and sale of the Qest polybutylene
plumbing system. The official committee of polybutylene
claimants in the U.S. Brass bankruptcy case has also asserted
that direct claims may be prosecuted against the Company and
Eljer Manufacturing notwithstanding the automatic stay. U.S.
Brass' motion to appoint an examiner in the bankruptcy proceeding
to investigate the merits and value, if any, of certain Qest
polybutylene-related claims against the Company, Eljer
Manufacturing and Household based upon alter-ego and related
theories of liability has been withdrawn without prejudice to
refiling at a later date.
The Company will vigorously contest any direct or derivative
claims that may be asserted against itself and Eljer
Manufacturing relating to the Qest plumbing system cases.
However, as previously disclosed, if any such claims are
successfully asserted against the Company or Eljer Manufacturing
during the pendency of the U.S. Brass bankruptcy proceeding, it
could, depending upon the adequacy and availability of insurance
coverage for costs and indemnity, have a material adverse effect
on the liquidity and financial condition of the Company.
Item 7 Exhibits
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Press release dated September 22, 1994 describing U.S.
Brass' 90 day extension to file a plan of reorganization in its
bankruptcy proceeding and the assertion of direct claims against
the Company.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
ELJER INDUSTRIES, INC.
Date: September 27, 1994 By /S/ Henry W. Lehnerer
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Henry W. Lehnerer
Vice President - Finance
& Chief Financial Officer
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No.
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<C> <S>
99 Press release dated September 22, 1994 describing
U.S. Brass' 90 day extension to file a plan of
reorganization in its bankruptcy proceeding and
the assertion of direct claims
against the Company.
</TABLE>
<PAGE>
NEWS RELEASE
FOR: ELJER INDUSTRIES, INC.
APPROVED BY: Henry Lehnerer.
Chief Financial Officer
(214) 407-2600
For Immediate Release
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CONTACT: Morgen-Walke Associates
Lynn Morgen/June Filingeri
Terence Rooney/Helen
Spanakos, Media Contact
(212) 850-5600
Ken Pieper (214) 701-8851
U.S. BRASS OBTAINS EXTENSION TO FILE REORGANIZATION PLAN
IN BANKRUPTCY PROCEEDING
DALLAS, Texas, September 22, 1994 --Eljer Industries, Inc.
(NYSE:ELJ) announced today that the federal Bankruptcy Court for
the Eastern District of Texas has entered an order extending by
90 days the period during which United States Brass Corporation
has the exclusive right to file a plan of reorganization. U.S.
Brass, an indirect, wholly-owned subsidiary of Eljer Industries,
filed a voluntary petition for reorganization under Chapter 11 of
the federal Bankruptcy Code on May 23, 1994. Under the
Bankruptcy Code, a debtor-in-possession has a 120-day exclusive
period from the date of the filing of its Chapter 11 petition
within which to file a plan. Under the Court's order, U.S.
Brass' exclusive right to file a plan was extended to December
22, 1994.
U.S. Brass continues to assert that all Qest polybutylene-
related claims, including claims of codefendants Shell Chemical
Company and Hoechst Celanese Corporation, against U.S. Brass,
Eljer Industries and its wholly-owned subsidiary, Eljer
Manufacturing, Inc. and Household International, Inc., the former
parent company of Eljer Industries, are stayed under the
Bankruptcy Code because the claims are property of U.S. Brass or
seek recovery from assets that are property of U.S. Brass.
Hoechst Celanese has recently asserted that Eljer Industries and
Eljer Manufacturing are directly liable for damages arising from
the manufacture and sale of the Qest polybutylene plumbing
system. The official committee of polybutylene claimants in the
U.S. Brass bankruptcy case, consisting of lawyers representing
various plaintiffs in the pending Qest plumbing system
litigation, has also asserted that direct claims may be
prosecuted against Eljer Industries and Eljer Manufacturing
notwithstanding the automatic stay.
- MORE -
(LETTERHEAD OF MORGEN-WALKE)
<PAGE>
U. S. BRASS OBTAINS EXTENSION - Page 2 -
Eljer Industries also noted that the U.S. Brass motion to
appoint an examiner in the bankruptcy proceeding to investigate
the merits and value, if any, of certain Qest polybutylene-
related claims against Eljer Industries, Eljer Manufacturing and
Household based upon alter-ego and related theories of liability
has been withdrawn without prejudice to refiling at a later date.
Scott G. Arbuckle, Chairman of U.S. Brass and President and
Chief Executive Officer of Eljer Industries, commented: "We are
pleased that U.S. Brass has been granted additional time in which
to formulate a plan to resolve the issues raised in the Qest
plumbing system litigation and to provide for the payment,
satisfaction and discharge of all claims against U.S. Brass."
Mr. Arbuckle continued: "Eljer Industries will vigorously
contest any direct or derivative claims that may be asserted
against Eljer Industries and Eljer Manufacturing relating to the
Qest plumbing system cases. However, as previously disclosed, if
any such claims were successfully asserted against Eljer
Industries or Eljer Manufacturing during the pendency of the U.S.
Brass bankruptcy proceeding, it could, depending upon the
adequacy and availability of insurance coverage for costs and
indemnity, have a material adverse effect on the liquidity and
financial condition of Eljer Industries."
Eljer Industries, Inc. is a leading manufacturer and
marketer of high quality building products, including plumbing,
heating and ventilating products, for the residential and
commercial construction, remodeling and repair, and
do-it-yourself markets.
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