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Harvard Industries, Inc. Files Plan And Disclosure Statement

15 July 1998

Harvard Industries, Inc. Files Plan And Disclosure Statement

    LEBANON, N.J., July 15 -- On July 10, 1998, Harvard
Industries, Inc. (OTC Bulletin Board: HAVAQ) filed its Chapter 11 plan and
Disclosure Statement with the United States Bankruptcy Court for the District
of Delaware.  The Plan, which is being jointly proposed and supported by the
Official Committee of Unsecured Creditors appointed in the Company's
Chapter 11 case, is a consolidated Plan for Harvard and its nine domestic
subsidiaries.
    The Plan contemplates a conversion of virtually all pre-petition unsecured
debt into 100% of the equity of the reorganized Company, subject to dilution
for the incentive options and with respect to the warrants to be issued under
the Plan.  The Company has received commitments from The CIT Group/Business
Credit, Inc. and other lenders to finance fully the Company's exit from
Chapter 11 pursuant to the Plan.  The Company will continue to evaluate
alternative financing proposals if more favorable to the Company.
    Under terms of the Plan, holders of Harvard's PIK Preferred and Common
Stock will receive warrants to acquire up to 5% of the common stock in the
reorganized Harvard.  Following a hearing before the Court scheduled for
August 19, 1998 on the adequacy of the Disclosure Statement, the Company will
commence the solicitation of votes for approval of the Plan.  If solicitation
commences as planned, Harvard expects to emerge from Chapter 11 in the fourth
calendar quarter of 1998.
    According to Roger Pollazzi, Chief Operating Officer of Harvard, "our plan
is consensual and jointly proposed with our Creditors' Committee.  The filing
and our joint efforts with the Creditors' Committee signals the start of the
disclosure statement and confirmation process that, in the near-term, will
result in Harvard's emergence from Chapter 11 as a substantially deleveraged
and healthy company.
    "As it exits Chapter 11, Harvard, particularly through its traditional
core businesses, is positioned for significant growth in the future," said
Pollazzi.
    "During the Chapter 11 process, Harvard has been successful in eliminating
the sources of historical operating losses and in commencing the
implementation of its business strategies to participate in new and more
lucrative market segments.  The new management team is committed to expanding
Harvard's role as a major supplier of finished components for the industrial
and automotive sectors worldwide," added Pollazzi.
    Harvard Industries, Inc. through its subsidiaries, designs, develops, and
manufactures a broad range of components for original equipment manufacturers,
producing cars and light trucks in North America and abroad.  Harvard
Industries and its domestic subsidiaries have been operating since May 8,
1997, under the protections of chapter 11 of the United States Bankruptcy
Code.