American Remanufacturers, Inc. Announces Comprehensive Restructuring Plan

* U.S. Subsidiaries named in Chapter 11 Filing * Sale of the company anticipated * Debtor-in-possession financing sought through senior lenders

BEDFORD, N.H., Nov. 8 -- American Remanufacturers, Inc. (ARI) announced today that it is instituting a comprehensive restructuring plan in order to maximize value of its operations while enabling it to continue uninterrupted service to its customers and to sustain stable and mutually beneficial relationships with its employees and vendors.

The first step of the restructuring plan took place today, when ARI filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court in the District of Delaware. The filing includes ARI's U.S. subsidiaries, but not its Canadian operation. The company cited its debt structure at the time of filing, increased industry pricing pressures, higher operating and material costs, and foreign competition, as its reasons for filing.

The decision to file is a necessary step to stabilize and preserve value for ARI customers, suppliers and employees in the United States, according to company management. No interruptions in ARI's manufacturing operations are expected, and it is anticipated that a stable supply of parts will reach its customers across the country. The company is committed to the viability of ARI, its customers, suppliers and employees.

Sale of the company

As part of its restructuring ARI is negotiating the sale of the company and its assets, subject to Bankruptcy Court approval. The sale will be conducted through an open bid process. ARI's senior lenders have made a bid, subject to higher and better offers. The sale will ensure the continuity of ARI business operations.

To assist the existing management team, BBK Ltd., an International Business Advisory Firm, has been retained. Gary Kulesza, a principal with BBK, has been appointed as ARI's President and CRO. BBK is also assisting the company as financial advisor as well as overseeing the company's sale process

Debtor-in-possession financing

ARI officials also announced that the company secured a commitment for debtor-in-possession (DIP) financing from its senior lenders for $15 million in additional financing. It is anticipated that the Bankruptcy Court will approve the financing. The funds will enable ARI to enable continue in the normal course of business.

About ARI

ARI is a privately held company that produces remanufactured automotive components that include "half shaft" axles, brake calipers, and steering components. ARI remanufactured parts are sold through various channels of distribution. Its U.S.-based subsidiaries include Car Component Technologies in Bedford, N.H.; Automotive Caliper Exchange in Anaheim, Cal.; ATSCO Products, Inc. of Phoenix, Ariz.; and Ohio Caliper, Inc. of Cleveland, Ohio. The company's Canadian operation, ABS Friction, Corp. located in Guelph, Ontario, Canada, produces aftermarket friction materials. ARI employs approximately 1,700 people at its various locations.