Exhibit 99.1

   Allis-Chalmers
   Box 612
   Milwaukee, Wisconsin 53201-0612                               NEWS RELEASE

                                                  Allis-Chalmers Consolidated
                                                  Pension Plan Notice of     
                                                  Intent to Terminate        

   William L. Vaitl                               RELEASE:  Immediate        
   414/475-3670                                   February 14, 1997          


             Milwaukee, WI -- Allis-Chalmers Corporation today announced that
   it has filed with the Pension Benefit Guaranty Corporation ("PBGC") to
   initiate the termination of the Allis-Chalmers Consolidated Pension Plan. 
   In accordance with PBGC requirements, notices have been mailed to the
   almost 9,000 Plan participants.  The Plan is significantly underfunded
   (previously reported as $11.9 million as of December 31, 1995 based on the
   assumptions used by the Plan's actuaries), and it is anticipated that the
   PBGC will assume the responsibilities of the Plan.  The company has failed
   to make required quarterly contributions starting in April 1996, resulting
   previously in the filing of a lien by the PBGC against the company.  The
   consequence of these circumstances is a liability to the PBGC well in
   excess of the current net worth of the company. The company has been
   engaged in ongoing discussions with the PBGC concerning this liability. 
   Although it is not possible to predict the outcome of such discussions,
   the company's options include seeking protection from its creditors by
   commencing voluntary bankruptcy proceedings under the federal bankruptcy
   laws.

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