JPE Inc. Announces Sale of Allparts

30 October 1998

JPE Inc. Announces Sale of Allparts

    ANN ARBOR, Mich.--(AutomotiveWire)--Oct. 29, 1998--JPE Inc. (OTC BB:JPEI) announced today that it completed the sale of substantially all of the assets of its wholly-owned subsidiary, Allparts, to R&B Inc. for approximately $10 million in cash and an assumption of Allparts' trade and accrued liabilities.
    The cash proceeds from this transaction were used to pay down bank debt. The transaction results in an estimated loss of approximately $5.0 million relating to the goodwill carried on JPE's balance sheet for Allparts.
    JPE also announced that it has successfully negotiated an amended Forbearance Agreement with its bank group which provides for funding through Dec. 31, 1999. The agreement is expected to provide adequate funding for Dayton Parts Inc. and Industrial & Automotive Fasteners Inc. to operate their businesses in the normal course. "We are pleased to have reached this agreement with our bank group. The agreement is designed to address the projected operating requirements of both Dayton Parts and Industrial & Automotive Fasteners," stated James J. Fahrner, chief operating officer and chief financial officer of JPE Inc.
    The statements contained in this press release which are not historical facts are forward looking statements. The company's actual results may differ materially from those projected in its forward looking statements, including, but not limited to the cooperation from and continued funding by the company's and Plastic Trim's and Starboard Industries' respective lenders; and the timing of and proceeds from either the company's sale of its businesses or the adoption of a plan of reorganization. In addition, various factors discussed in the company's various reports filed with the Securities and Exchange Commission may affect such forward looking statements.