Newcor not able to pay interest installment on subordinated notes

BLOOMFIELD HILLS, Mich. (Sept. 4)—Molded rubber and plastics parts maker Newcor Inc. in an Aug. 31 press release said it will be unable to pay its the semi-annual installment of interest—due today—of about $6.1 million on its 9-7/8 percent senior subordinated notes which are due in 2008. Newcor said it could not make the payment without defaulting under its bank credit agreement. However, the manufacturer said it will continue to look for "available alternatives" to come up with the money to make the interest payment on the notes. The missed payment comes less than a month after six members of its board of directors—including its former chairman—resigned, effectively giving control of the board to Exx Inc., the Las Vegas-based toy and electronics company that made an unsolicited bid for Newcor in May. David A. Segal, Exx chairman and CEO, was elected chairman of the Newcor board, and Exx directors filled three of the vacant spots.