ALLIS-CHALMERS <AH> DEFERS INTEREST PAYMENTS
Allis-Chalmers Corp said it is
deferring approximately three mln dlrs of interest payments due
March 31 and April 1.
    The company said it is actively negotiating with lenders
for concessions on a restructuring plan proposed March Four
calling for Allis-Chalmers to divest itself of all businesses
except the American Air Filter Co.
    Allis-Chalmers said it is "building a consensus among its
shareholders, retired employees and creditors" regarding the
consents that will be required for it to complete its
restructuring.
    To provide health care protection for its retired
employees, Allis-Chalmers said it proposed setting up a secure
75 mln dlr fund. It said about 4,400 current U.S. employees and
12,000 U.S. retirees are presently supported by Allis-Chalmers
health care plans.
    Allis-Chalmers in a statement said it planned to continue
payments to its vendors in the ordinary course of business
while the restructuring is being negotiated.
    Earlier, Allis-Chalmers said it executed a letter of intent
to sell its solids processing equipment and minerals systems
businesses to Boliden AB of Sweden for about 90 mln dlrs.
 Reuter
