20th October 2006 - Federal-Mogul Announces Resolution of UK Administrated Businesses

Federal-Mogul Corporation announced that the United Kingdom Administrated Company Voluntary Arrangements (CVAs) resolution became effective on the 11th of October 2006.

Federal-Mogul retains under the CVAs all of the UK Administrated businesses. The UK Administrated companies include activities in Europe, the Americas and Asia-Pacific. This completes a substantial portion of Federal-Mogul’s global restructuring, which began on October 1, 2001, when the Company decided to separate its asbestos liabilities from its true operating potential by voluntarily filing for Administration proceedings in the UK and for financial restructuring in the United States under Chapter 11 of the Bankruptcy Code.   Federal-Mogul and the Plan Co-proponents in the U.S. are working to finalize the Amended Chapter 11 Plan of Reorganization, the Supplemental Disclosure Statement and a Supplemental Voting and Notice Procedures Motion that is expected to soon lead to emergence from bankruptcy.

“We are pleased with the recent developments that bring the company closer to emergence from a complex bankruptcy proceeding,” said Federal-Mogul Chairman, President and Chief Executive Officer José Maria Alapont. “We remain focused on our global profitable growth strategy to provide worldclass products and services with leading technology and innovation that satisfy customer, employee and stakeholder expectations.”

Source: Federal-Mogul Press Release