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JPE Inc. Announces Sale of JPE Canada

16 February 1999

JPE Inc. Announces Sale of JPE Canada

    ANN ARBOR, Mich.--(AutomotiveWire)--Feb. 15, 1999--JPE Inc. (OTC BB:JPEI) announced today the sale of substantially all of the assets of its Canadian subsidiary, JPE Canada Inc. ("JPEC").
    Proceeds of the sale were used to reduce amounts owing to JPEC's secured bank lender, and no proceeds are available to JPE.
    JPE had provided an unsecured guarantee in the amount of Cdn. $2.0 million for a portion of the JPEC debt. Since the proceeds of the sale were not sufficient to fully pay JPEC's secured lender, JPE continues to be indebted to the lender under this guarantee in the amount of approximately Cdn. $950,000. JPE is negotiating with JPEC's secured lender to settle amounts due under the guarantee.