Federal-Mogul Corporation CEO Interview: Jose Maria Alaport

• On 11:35 am EDT, Tuesday October 6, 2009

67 WALL STREET, New York - October 6, 2009 - The Wall Street Transcript has just published its Transportation and Logistics Report offering a timely review of the sector to serious investors and industry executives. This 81 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: China Export Tax -- Overcapacity in the Shipping Industry -- Market Balance -- Traffic Flow -- Asia-Pacific Region -- Import/Export Traffic -- Beneficiaries of Financial Strength -- Terminating Markets -- International Business -- Tanker Companies Versus Dry Bulk Companies -- Chinese Stimulus -- Real Demand Versus Stimulus Demand -- Monitoring Potential Acquisitions -- Automobile Industry -- Demand in Emerging Countries -- Falling Demand -- Future Oversupply -- Growth of Fleets -- Pickups in Infrastructure Spending -- Navigating the Downturn -- Supply & Demand -- Chinese Cell Phones -- Mobile Phone Market Growth -- Future Growth -- Stimulus Programs -- Temporary Boosts -- Inventory Stabilization -- Affects of Declines in Passenger Flights -- Capacity of Passenger Aircraft -- Improvement in Volumes -- Pricing & Margins -- Restructuring -- Forms of Consolidation -- Investing in Infrastructure -- Wage Concessions -- Railroad Expansion

Companies include: Diana Shipping (DSX); Star Bulk Carriers (SBLK); Nordic American Tankers (NAT); Overseas Shipholding Group (OSG); General Maritime (GMR); Federal Express (FDX); UPS (UPS); Forward Air (FWRD); Expeditors International (EXPD); Express-1; Tsakos Energy Navigation (TNP); Navios (NM); Vale (VALE); Excel (EXM); Teekay (TK); DryShips (DRYS); UTi Worldwide (UTIW); Old Dominion (ODFL); Arkansas Best (ABFS); J.B. Hunt (JBHT); Con-way (CNW); Atlas Air (AAWW); Air Transport Services Group (ATSG); Norfolk Southern (NSC); Union Pacific (UNP); CSX (CSX); Canadian National Railway (CNI); C.H. Robinson (CHRW); Kuehne and Nagel; Deutsche Post; YRC Worldwide (YRCW); Dynamex (DDMX); Ryder ®

In the following brief excerpt from the 81 page, Jose Maria Alapont CEO of Federal-Mogul Corp., discusses the outlook for the sector and for investors.

TWST: I'd like to begin by asking you to outline the history of Federal-Mogul and give an overview of your business.

Mr. Alapont: Federal-Mogul is one of the long-standing companies in the industry; it started in 1899 and has a long history. In the last few years, the company grew very fast through acquisitions. But one of those acquisitions resulted in major asbestos liabilities for the company.

TWST: That was in the late 1990s?

Mr. Alapont: Correct, in 1998 to be precise. It was T&N, a British group which used asbestos in their products. In 2001 the company filed for Chapter 11 and U.K. administration, with the vast majority of the legal entities in bankruptcy in the United Kingdom.

TWST: What happened?

Mr. Alapont: During a period of time, four years, the company tried several times to emerge unsuccessfully. I joined the company in March 2005 and one year later we managed to take out of bankruptcy Federal-Mogul in all legal entities under U.K. administration. We did the same thing at the end of 2007 in the United States when Federal-Mogul emerged from Chapter 11. With that we started what we'll call a new Federal-Mogul, and we listed the company at this time on the NASDAQ under FDML. We have been, since then, developing our global strategies.

TWST: Another upshot of the time in bankruptcy is that your creditors wound up with a lot of equity. In particular, Carl Icahn owns or controls 75% of your common stock.

Mr. Alapont: To emerge from Chapter 11 without asbestos liabilities, the bankruptcy proceedings required that 50.1% of the company be awarded to an Asbestos Trust and the other 49.9% was distributed proportionately to other creditors. That is what we did on the 27 of December 2007. As a result of that, the equity went effectively to creditors that were mostly bondholders and to the Asbestos Trust. During the first quarter 2008, there was a transaction through which Icahn Group became as well the shareholder buying the 50.1% that was issued to the Asbestos Trust plus around 25% it received as a creditor. These transactions gave the Icahn Group the 75% of the shareholdings of the company.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 81 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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