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Founder and Chief Executive Officer of JPE, Inc. Resigns

14 September 1998

Founder and Chief Executive Officer of JPE, Inc. Resigns

    ANN ARBOR, Mich.--(AutomotiveWire)--Sept. 11, 1998--Dr. John Psarouthakis, founder and chief executive of JPE, Inc. has resigned as an officer and director of the company.
    JPE was founded to acquire businesses with the opportunity for growth in the auto and truck industries. Since 1996, JPE has experienced a succession of operating problems in the acquired companies that caused losses and ultimately an inability to meet bank loan covenants. Several key management changes were made; and after substantial efforts by JPE management and employees, and the write-down of JPE's Canadian investment, the main operating difficulties of the domestic business units have been significantly resolved and the operations are on the path to profitability and increased value.
    As indicated in prior announcements, the company has been in negotiations with its senior bank lenders in connection with outstanding indebtedness.
    For several months, management has tried to develop a program that would restructure the bank debt so that value could be preserved for the shareholders. We have submitted proposals to the banking group that we believe would result in the maximum recovery for the lenders and other creditors, while benefiting shareholders, customers and employees. Despite these efforts, we have been unable to convince the bank group to ease the pressure on the company. I do not believe that I can make a constructive contribution to the company under those conditions and, therefore have resigned as chief executive officer and director.

    Statement by Dr. John Psarouthakis.