SHEBOYGAN, WI -- After only 18 weeks under Chapter 11 protection, J.L. French Automotive Castings, Inc., a privately-held supplier of high pressure die-cast aluminum automotive components and assemblies, has been given court approval of its Plan of Reorganization that details how the company will satisfy creditor claims. The company expects to emerge from Chapter 11 protection at the end of June.

"I am pleased to communicate that we have successfully completed our restructuring," said Jack Falcon, chairman, chief executive officer and president. "I want to acknowledge the tremendous support of our major customers, employees, vendors and creditors as well as the professionals we engaged to help us reach our goals.

"When we emerge on June 30, J.L. French will have shed $465 million in first and second lien senior secured debt and $28.9 million in 11.5 percent senior subordinated unsecured notes. We will have acquired $130 million in new equity investment and $255 million in new financing. In recent months, our major customers have made new business commitments to us, and we expect to grow solidly into the future. Our work in Europe and China is progressing to plan, and the opportunities in these markets are encouraging. With a strong balance sheet and capable production centers, we foresee controlled, steady growth."

Upon emergence, the participants in the $130 million rights offering will hold 92 percent of the common stock in the newly reorganized company. The holders of second lien debt will receive the remaining 8 percent of new common stock in satisfaction of approximately $170 million of claims. The approved Plan of Reorganization also calls for three tranches of warrants to be made available to certain creditor classes with an exercise period five years from the Plan's effective date.

The $130 million of new money investment, along with a new $205 million term loan that is part of the exit facility, will pay off first lien debt of approximately $295 million, as well as fund certain costs associated with exiting bankruptcy. The newly reorganized company will then have approximately $231 million in long-term debt comprised of the term loan and some $26 million in other secured debt. The company's debt leverage will be approximately 3.5 times projected 2006 earnings before certain deductions, as compared to a pre-reorganization leverage of approximately 8.5 times earnings.

The new $205 million term facility is structured as $140 million and $65 million in first and second lien term loans, respectively. The $255 million exit facility also contains a $50 million revolver available to fund working capital needs. Exit financing is being provided by Goldman Sachs Credit Partners L.P. and Morgan Stanley Senior Funding, Inc.

For more information about J.L. French, go to: www.jlfrench.com .

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