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Exhibit 99.1
Purina Mills, Inc.
P.O. Box 66812
St. Louis, MO 63166-6812
[PURINA MILLS - LOGO] NEWS
For more Information Contact:
Max Fisher, 314/768-4579
PURINA MILLS EMERGES FROM CHAPTER 11;
COMPANY TO TRADE ON NASDAQ
ST. LOUIS, MO., JUNE 29, 2000 -- Purina Mills, Inc. (NASDAQ: PMIL), the
nation's largest animal nutrition company, today announced that the company has
emerged from Chapter 11 reorganization protection. The company's Plan of
Reorganization, which was approved by more than 95 percent of the company's
creditors that voted on the Plan and was confirmed on April 5, 2000 by the U.S.
Bankruptcy Court for the District of Delaware, cleared the way for the company's
emergence from its voluntary Chapter 11 proceeding today.
To implement its restructuring, Purina Mills and 10 of its affiliates
filed petitions for reorganization under Chapter 11 of the Bankruptcy Code on
October 28, 1999. The company has met all requirements to emerge from bankruptcy
and the implementation of the court approved Plan of Reorganization brings to a
conclusion the company's financial restructuring process.
Under the confirmed Plan of Reorganization, substantially all of the
new common stock of the reorganized Purina Mills initially will be distributed
to the company's pre-petition general unsecured creditors. The first
distribution of common stock is anticipated to occur in August, 2000. Purina
Mills' common stock will trade on NASDAQ under the symbol "PMIL." Old common
stock in Purina Mills, which was held by Koch Agriculture Company, has been
cancelled under the Plan of Reorganization.
Purina Mills emerges with stockholders' equity equal to $185 million,
with secured bank debt equal to $175 million and with access to $50 million
under a new revolving credit facility.
Brad J. Kerbs, Purina Mills' President and Chief Executive Officer,
said: "Since commencing our voluntary reorganization eight months ago, we have
successfully restructured our financial position. Through this restructuring we
have effectively put many challenges of our past behind us, permitting the
company to emerge from Chapter 11 with a significantly less leveraged balance
sheet, cash to fund operations and an improved expense structure. All of this
forms a stronger foundation for growth."
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Purina Mills Emerges from Chapter 11
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As part of the newly reorganized Purina Mills, the company previously
announced the appointment of a new five member Board of Directors pursuant to
the Plan of Reorganization.
The new Board members are Craig Scott Bartlett, Jr., Robert Cummings,
Jr., James Gaffney, Robert Hamwee and Brad Kerbs.
Mr. Bartlett is a self-employed corporate director, who currently
serves on the Board of Directors of NVR, Inc., a homebuilder; Janus Hotels and
Resorts, Inc., a hotel and hotel management company; Allstate Financial
Corporation, a commercial finance company; and Abrayas Petroleum Corporation, an
exploration and development company.
Mr. Cummings joined Goldman Sachs & Co., an investment bank, in 1973
and thereafter served as a General Partner of the firm until his retirement in
1998. Since his retirement, he has served as an Advisory Director of Goldman
Sachs & Co.
Mr. Gaffney has served since 1997 as the Chairman of the Board of
Vermont Investments, LTD., which provides consulting services to various
investment funds. He was previously the Chairman of the Board and Chief
Executive Officer of General Aquatics, Inc.
Mr. Hamwee is a Managing Director of GSC Partners, which he joined in
1994. He previously was associated with The Blackstone Group, where he worked on
a wide range of assignments in the Merchant Banking, Mergers & Acquisitions and
Restructuring departments.
Mr. Kerbs, President and CEO of Purina Mills, began his career with
Purina in 1969 and has served in various management positions including credit,
sales, operations and marketing. In his 31 year career, he also led the pet food
business in Europe for BP Nutrition from 1988 to 1994 during the time Purina
Mills was owned by British Petroleum. From 1998 to 1999, he served as Executive
Vice President of Purina Mills Retail Business. Prior to being named President
and CEO of Purina Mills in February, 2000, he was President and Chief Operating
Officer of Purina Mills.
"The successful culmination of this restructuring process would not
have been possible without the commitment and support of our customers, dealers,
suppliers and employees," said Kerbs. "We are extremely pleased that during the
brief restructuring process Purina Mills was able to continue its daily
operations, continue working with our vendors and dealers and fulfill its
obligations to customers with minimal interruption."
Mr. Kerbs notes, "Today, Purina Mills is a stronger, more competitive
company. We remain committed to a market philosophy that is based on long term
relationships in our businesses. Our brand, reputation, knowledge, and
technology, combined with our independent Purina dealers and distribution
channels to these markets, are our strength."
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Purina Mills Emerges from Chapter 11
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"We have been the recognized leader in our industry for 106 years, and
we intend for our leadership to continue," said Mr. Kerbs. "As long as there are
animals, there will be an important animal nutrition business. We are looking
forward to profitably growing our company as we continue to supply America's
animal owners and production systems with the nutrition products, knowledge and
services that profitably exceed our customers' expectations."
Purina Mills is America's largest producer and marketer of animal
nutrition products. Based in St. Louis, Missouri, the company has 49 plants and
approximately 2,500 employees nationwide. Purina Mills is permitted to use the
trademarks "Purina" and the nine-square Checkerboard logo under a perpetual,
royalty-free license agreement from Ralston Purina Company. Purina Mills is not
affiliated with Ralston Purina Company, which distributes Purina Dog Chow brand
and Purina Cat Chow brand pet foods.
# # #
Statements in this release which are not purely historical are
forward-looking statements, including any statements regarding beliefs, plans,
expectations or intentions regarding the future. Forward-looking statements in
this release include statements regarding the future economic performance and
financial condition of Purina Mills, the plans and objectives of Purina Mills
management, and Purina Mills' assumptions regarding such performance and plans.
It is important to understand that actual outcomes and Purina Mills' actual
results could differ materially from those in such forward-looking statements.
Factors that could cause actual results to differ materially include risks and
uncertainties such as excess capacity in the commercial feed industry,
fluctuations in the prices of agricultural products used to produce our animal
feeds, and our debt structure which could make us more vulnerable to such
fluctuations and other adverse economic developments. Readers should refer to
the risk disclosures outlined in Purina Mills' Form 10 Registration Statement,
as amended, filed with the Securities and Exchange Commission on March 23, 2000
for additional information concerning important factors that could cause our
actual results to differ from the forward-looking information contained in this
release.
