<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; = charset=iso-8859-1"> <META content="MSHTML 5.50.4611.1300" name=GENERATOR></HEAD> <BODY> <DIV>List,</DIV> <DIV> </DIV> <DIV>In reading the press release, I don't see a company going down for the last = time but the first hope in a while that the "legacy of past management", as = Mr. Jones so aptly puts it will finally be overcome.  As was listed in a = recent trade press article, Ms. Hendricks managed to secure a HUGE severance package = from the board.  It seems that this brings this $million plus arrangement = back to the table for revision or revocation.  If so, then I heartily = applaud this move as a huge step in the right direction.  Putting a person who = knows the piano business in charge of the company is another great step.</DIV> <DIV> </DIV> <DIV>While I've had plenty of disagreement with the way things have been done, I = find disagreement with the way most manufacturers put pianos together.  = That being said, I always try to offer a solution with the complaint and = credit them where it's due.  </DIV> <DIV> </DIV> <DIV>I personally don't want to see any manufacturer slip quietly into the = night.  So hopefully this is the start of a new era at Baldwin that = we can applaud.  I'm not going to make predictions of everything being = great by the time we wake up tomorrow morning nor am I assuming that the end is here.  My hopes are with them for a great = future.</DIV> <DIV> </DIV> <DIV>In the middle of writing this, I stopped to talk with one of my friends at = Baldwin and I received a very positive feel from him that he feels this is the next = logical step.  I quoted Bill's copy of the original press release so you = can reread it in this light and draw your own conclusions.</DIV> <DIV> </DIV> <DIV>Hope to you see you all in Reno.</DIV> Allan    -----Original = Message----- From: owner-pianotech@ptg.org [mailto:owner-pianotech@ptg.org]On Behalf Of Billbrpt@AOL.COM Sent: Thursday, May 31, 2001 12:53 AM To: pianotech@ptg.org Subject: It gets worse <BLOCKQUOTE>Baldwin Piano = & Organ Co. Announces Intent to Reorganize Under Chapter 11 of The = United States Bankruptcy Code   MASON, Ohio, May 30 = /PRNewswire/ -- Baldwin Piano & Organ Company today announced its intent to = file for bankruptcy protection under Chapter 11 of the United States = Bankruptcy Code.  Previously, the Company announced on April 24, 2001, a = liquidity squeeze that was having a negative impact on the = Company.  Subsequently, Baldwin hired Robert Jones as the new chief = executive officer and announced that Kenneth W. Pavia was elected chairman = of the board of directors. In a statement, Pavia said that while = he had full confidence in Jones and his ability to return the Company to profitability, the liquidity squeeze coupled with certain legacy = issues made the operation of Baldwin, as presently defined, virtually = impossible. Pavia commented, "The legacy of past management makes the = day-to-day operations of our core business impossible.  Disproportionate = severance agreements, excessive inventory, excess administrative = expenses in relation to historical Company performance, internal control = issues, executive compensation arrangements that seem to exceed reasonable = standards, and an extensive list of substantial payables are some = examples of the factors we can not overcome." "Other factors that = led to our decision to file for protection," Pavia added, "included = unduly burdensome lease arrangements entered into under past = administrations, restrictive borrowing arrangements with our lender, and the = inability to secure concessions in regard to our liquidity crisis." "The = dealers, factory personnel, and the new management deserve the opportunity = to bring Baldwin back to its glory without the added pressure of past mismanagement," Pavia emphasized.  "All attempts to resolve this = matter informally were explored and given due consideration. =  Unfortunately, the pressures caused by the lack of liquidity and the demand of = our creditors, including prior management's demand for the immediate = payment under certain change of control agreements, made any recovery = impossible.  In the end, for the benefit of all concerned, including our shareholders, a formal, orderly reorganization became the only = viable alternative." In a statement, Jones said that he looked = forward to leading the Company out of bankruptcy and working diligently to = restore the Baldwin name and maintain the Company's relationship with its = dealers and customers.  He continued, "Despite being CEO for only = three weeks, I am convinced that the personnel at our factories have the = ability, desire, and loyalty to make quality pianos and achieve = enhanced values.  I firmly believe that the Baldwin name stands for = our loyal employees and dealers.  With their continued support and the implementation of our strategic plan, Baldwin can return to = profitability within a relatively short period." Baldwin Piano & = Organ Company, the maker of America's best selling pianos, has marketed = keyboard musical products for over 140 years. "Safe Harbor" statement = under the Private Securities Litigation Reform Act of 1995:  This = release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of = competitive products and pricing, product demand and market acceptance, = reliance on key strategic alliances, fluctuation in operating results and = other risks detailed from time-to-time in the Company's filings with the = Securities and Exchange Commission. Bill Bremmer RPT Madison, Wisconsin </BLOCKQUOTE></BODY></HTML>