Federal Mogul Exits Chapter 11, Public Again Soon

Federal-Mogul Corp. has announced it emerged from Chapter 11 on December 27, 2007 as the effective date of its reorganization plan.  CEO Jose Maria Alapont noted beginning 2008 as being well positioned for sustainable profitable growth.

The company issued 49.9 million Class A common stock and 50.1 million Class B shares.  These Class A shares of common stock were issued to holders of the pre-bankruptcy notes and certain other unsecured claims, and Federal Mogul intends that these Class A will be listed in the near term.  The 50.1 million shares of Class B common stock were issued to the Federal-Mogul Asbestos Personal Injury Trust.

Federal Mogul also has issued 6.9 million warrants to purchase shares of its Class A Common Stock to holders of its pre-bankruptcy common stock, preferred stock and convertible junior subordinated debentures.

The company has a $3.5 Billion exit facility agreement that consists of a $540 million revolving credit facility and a $2.960 Billion term loan facility.  It intends to repay on January 3, 2008 the Tranche A term loan and the PIK notes from funds borrowed under the term loan credit facility.

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Jon C. Ogg
January 2, 2008