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March 01, 2000 01:00 AM

Heatway files for bankruptcy, receives offer

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    SPRINGFIELD, Mo. (March 1)—Heatway Systems—which recently lost a federal court battle with Goodyear over liability for deteriorating hydronic heating systems containing Entran II hose—filed for relief Feb. 25 under the Chapter 11 bankruptcy code and is negotiating to be acquired by Watts Industries. If the reorganization and sale go through as planned, Watts will buy Heatway´s assets, and the proceeds from the sale will be distributed among Heatway´s creditors and claimants against a warranty the company provided on Entran II, a hose Goodyear manufactured for Heatway. The federal bankruptcy court in Kansas City has yet to hear Heatway´s petition for Chapter 11 reorganization.

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