Penn Specialty Files Chapter 11

Penn Specialty Chemicals announced that it filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in the District of Delaware. The Company stated that the filing is the result of cash flow issues caused by the significant downturn in demand in the chemical and associated industries from Q3 2000 on, sharp natural gas cost increases in Q1 of this year, and the continuing strong dollar.

(Personal Note: Decrease in demand, coupled with increase in costs AND a strong dollar. No wonder all the chemical companies are getting slammed in the stock market.) I expect a lot more layoffs from that sector especially this fall with NG costs skyrocket again.

-- Guy Daley (guydaley1@netzero.net), July 10, 2001