Safelite AutoGlass Completes Financial Restructuring; Anticipates Emergence from Court Protection

Sep 12, 2000, 01:00 ET from Safelite AutoGlass

    COLUMBUS, Ohio, Sept. 12 /PRNewswire/ -- Safelite Glass Corp. (D.B.A.
 Safelite AutoGlass) today announced that its financial restructuring plan has
 been approved by the US Bankruptcy Judge in Wilmington, DE.
     Business continued as usual during the court-protected restructuring, and
 the company exceeded expected profit levels for the first quarter ended
 June 30, 2000. "We are extremely gratified to have received strong support
 from our associates, our clients, and our vendors during this challenging
 period," said John Barlow, Safelite President and CEO. "That we were able to
 maintain customer satisfaction ratings of better than 98% is a testament to
 the dedication of our associates."
     The company's financial restructuring includes the conversion of
 $317 million in long term debt to equity. The converted debt was held by the
 company's banks and bondholders. More than 95% of these creditors supported
 the restructuring plan.
     With the plan approved, Safelite is well positioned to move forward with
 plans to grow its share of the $3.2 billion auto glass business. The
 conversion of one half of the company's long-term debt to equity has
 dramatically improved Safelite's financial position. Interest and principal
 payments on the long term debt will be decreased significantly, and cash flow
 will increase. The restructuring will allow the company to continue its
 aggressive investment in technology and claims processing services for its
 insurance and fleet customers.
     Recently, Safelite embarked on several new initiatives that will propel
 the company's growth through 2000 and beyond:
     * Mobile Pro operations in new markets provide high quality mobile auto
       glass service in response to customer's demands for convenience
     * Service AutoGlass provides a new wholesale distribution channel for
       OE-equivalent windshield products produced by the company's two
       manufacturing plants
     * The Total Customer Solution (TCS) allows insurance and fleet clients to
       outsource their auto glass claims processing for improved efficiency and
     * Repair Medics repair windshield chips and cracks up to 6" long, saving
       money for consumers and Safelite's insurance clients
     Moving forward, the company's plans include efforts to leverage technology
 solutions to provide expanded geographical coverage and claims processing
 services for insurance and fleet companies. The company expects that the
 remaining conditions of the Chapter 11 will be fulfilled within the next
 several weeks, and the company will officially emerge from bankruptcy at that
     Privately held Safelite Glass Corp. is the leader in the $3.2 billion auto
 glass repair and replacement industry. Safelite is the only auto glass company
 with representation in all 50 states, serving more than 80% of the US
 population. The company's 6,200 associates provide auto glass repair and
 replacement solutions for more than 2 million customers annually. For more
 information, please visit the company's website at .

SOURCE Safelite AutoGlass