NEWS RELEASE
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CONTACT: Kevin McDermed
913 367 2121
NYSE: FDY
ATCHISON CASTING CORPORATION COMPLETES
EXTENSION OF CREDIT FACILITY
Atchison, Kansas - December 20, 2001 - Atchison Casting Corporation
(NYSE:"FDY") today announced that it has entered into an amendment and extension
of its North American revolving credit facility with its senior lenders until
June 30, 2002. The Company had previously entered a Forbearance Agreement with
its lenders, which was set to expire this week.
The Twelfth Amendment and Forbearance Agreement consists of a $75.5
million revolving credit facility, decreasing to $72.5 million on January 31,
2002 and to $70.5 million on March 31, 2002. Asset sales and tax refunds will be
used to reduce indebtedness. Secured by substantially all of the Company's North
American assets, loans under this credit facility will bear interest at prime
plus 2.0%. A new covenant regarding operating cash flow (minimum cumulative
earnings before interest, taxes, amortization and depreciation) has also been
added.
"This extension will alleviate the uncertainty felt by some of our
suppliers, and allow management to focus more on operations," said Hugh H.
Aiken, CEO.
Previously the Company announced that its U.K. subsidiary, Atchison
Casting UK Limited ("ACUK"), entered a new, three year, facility of up to 25
million British pounds (approximately $35 million U.S.), subject to certain
eligibility calculations, with Burdale Financial Limited, an affiliate of
Congress Financial Corporation. ACUK is the parent of Sheffield Forgemasters
Group Limited, the parent company of the Company's UK operations.
ACC produces iron, steel and non-ferrous castings for a wide variety of
equipment, capital goods and consumer markets.
This press release contains forward-looking statements that involve
risks and uncertainties. Such statements include the Company's expectations as
to future performance. Among the factors that could cause actual results to
differ materially from the forward looking statements are the following: costs
of closing foundries, success in selling Jahn Foundry and Los Angeles Die
Casting, the impact that terrorist activities on and after September 11, 2001
and any related military responses may have on the markets served by the
Company, business conditions and the state of the general economy, particularly
the capital goods industry, the strength of the U.S. dollar, British pound
sterling and the Euro, interest rates, the Company's ability to renegotiate or
refinance its lending arrangements, utility rates, the availability of labor,
the successful conclusion of union
ATCHISON CASTING CORPORATION
400 SOUTH FOURTH STREET o P.O. BOX 188 o ATCHISON, KANSAS 66002-0188
o (913) 367-2121 o FAX (913) 367-2155
contract negotiations, the results of any litigation arising out of the accident
at Jahn Foundry, results of any litigation or regulatory proceedings arising
from the accounting irregularities at the Pennsylvania Foundry Group, the
competitive environment in the casting industry and changes in laws and
regulations that govern the Company's business, particularly environmental
regulations.
ATCHISON CASTING CORPORATION
400 SOUTH FOURTH STREET o P.O. BOX 188 o ATCHISON, KANSAS 66002-0188
o (913) 367-2121 o FAX (913) 367-2155
