TOWLE <TOW> SAYS COMMON MAY BE CANCELLED
Towle Manufacturing Co, operating
under Chapter 11, said that based on a reorganization plan it
is likely that its outstanding common and preferred will be
substantially diluted or cancelled.
    Towle also said that it is likely that general unsecured
claims, including claims of subordinated debenture holders,
will be paid at less than 100 pct of their face value and
without interest.
    Towle has not yet submitted a reorganization plan under
Chapter 11. It based its predictions on its liabilities and on
the resources which would be available under such a plan.
    Company officials were not immediately available to comment
on the company's reorganization plan.
    Towle also said that as a result of its restructuring, its
sales for 1987 will not exceed 100 mln dlrs.
    Earlier it reported a loss from operations of 22 mln dlrs
or 4.71 dlrs a share on revenues of 114.6 mln dlrs for 1986. In
1985, the company reported a loss of 67.2 mln dlrs or 14.09
dlrs a share on sales of 221.8 mln dlrs.
    As a results of its restructuring, the number of employees
the company had at year end were 820, compared with 1,300 on
June 30, 1986 and 2,500 on January 1, 1985.
 Reuter
