FMC Doesn't Plan Sale of More Assets For Restructuring
CHICAGO -- FMC Corp. said its proposed $1.8 billion recapitalization won't require the big chemical and defense products concern to sell additional assets.</br></br>However, FMC officials conceded that its forecast could be altered by the huge debt load the company is taking on to finance the plan, higher interest rates, lower commodity prices or problems with its defense business. Some analysts have questioned the post-recapitalization earnings outlook, calling it overly optimistic.</br></br>Moreover, because of the big borrowings, FMC would have a negative net worth of about $627.7 million at the end of this year under the plan. And the company projects that its net worth wouldn't be positive again until 1991. Shareholders are scheduled to vote on the plan May 22.</br></br>In its proxy material, FMC said it received commitments from a group of banks led by Morgan Guaranty Trust Co. of New York to raise about $1.4 billion for the plan. FMC said it also expects to raise $625 million from the sale of subordinated debentures.</br></br>The company disclosed in the proxy material that it expects to pay $60 million in bank, investment banking, legal, accounting and other fees in connection with the transaction -- one of the highest figures ever in a corporate restructuring.