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June 9, 2000

Safelite Files Bankruptcy

Dow Jones is reporting the following:


Auto-Glass Concern Safelite Glass Files Bankruptcy Petition

NEW YORK -- Safelite Glass Corp., a major producer of glass for the automotive aftermarket, filed for bankruptcy court protection Friday, listing assets of $559.2 million and liabilities of $591.4 million.

The Columbus, Ohio-based company filed a Chapter 11 petition in federal. Bankruptcy Court in Wilmington, Del.

In the petition, Safelite said it has hired the Blackstone Group L.P. and Deloitte & Touch L.L.P. as financial advisers to assist it in the proceedings.

The company estimated it has more than 1,000 creditors and said funds would be available for distribution to unsecured creditors.

In March, Safelite signed a waiver agreement with its senior bank lender, waiving certain defaults, through Friday, under its $388 million bank facility. The bank said the waiver would allow it to operate as usual. At the same time, Safelite said it had begun discussions with holders of certain bonds about a possible capital restructuring.

Two months later, Safelite and auto-parts seller Pep Boys-Manny, Moe & Jack announced a cross-licensing to promote co-branded automobile glass replacement and repair service.

Safelite Glass operates Safelite AutoGlass service centers, mobile vans and auto-glass warehouses in all 50 states.

According to the Chapter 11 petition, Thomas H. Lee Equity Fund III L.P. and Belron (USA) BV both own or hold at least 5% of the company's voting securities. As of Jan. 1, there were 90,000 shares of the company's preferred stock outstanding, held by 50 individuals, and 13.8 million Safelite Glass common shares outstanding, held by 64 individuals.

Related Links:

AGRR Magazine 1st Reported June 8, 2000
Safelite SGC Networks Correspondence
Safelite lists over 1,000 Unsecured Creditors
View the Court Documents

source: Dow Jones Web Site