ALLIS-CHALMERS <AH> LISTS MAIN CREDITORS
Court documents filed with the U.S.
bankruptcy court by attorneys for Allis-Chalmers Corp <AH>
listed Equitable Life Assurance Co as one of the largest
creditors.
    According to the court papers, Equitable was owed a total
of 468,859 dlrs. Other creditors included Connecticut General
Life Insurance Co, owed 192,520 dlrs, and New York Life
Insurance Co, owed 146,553 dlrs.
    The list of unsecured creditors was headed by KHIC America
Corp, of Rutheford, New Jersey, which was owed 663,950 dlrs.
   
    Second on the list of unsecured creditors was a group of
paving contractors owed 600,000 dlrs.
    Manville Corp <MAN> was third with 471,157 dlrs owed.
    Allis-Chalmers said that on Dec 31 the unfunded pension
liabilities totaled 44 mln dlrs.
    It said that it intended to carry out a reorganization by
disposing of businesses that do not contribute adequately to
cash flow. The company said it plans to eliminate unprofitable
product lines and emphasize more profitable product lines.
    Allis-Chalmers said it intended to obtain workforce
reductions and seek monetary and other concessions from
salaried and hourly employees.
    It said it will eliminate operations of facilities that are
marginal performers. The company said it plans to discontinue
burdensome contracts and leases as well as collective
bargaining agreements.
    The company said it believes creditors will realize more
from a reorganization than from a liquidation.
    The documents said Allis-Chalmers has suffered substantial
losses since 1981 due to sales declines caused by fierce
competition and a sluggish global economy.
    It said a restructuring plan, which it has already 
instituted, adversely affected cash flow because certain costs
including product liability and retiree medical and pension
costs continued as before despite a reduction in the size of
its business.
 Reuter
