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ENVIRODYNE INDUSTRIES, INC. ANNOUNCES OUTCOME OF VOTING ON CHAPTER 11 PLAN OF REORGANIZATION

 OAKBROOK, Ill., Oct. 4 /PRNewswire/ -- Envirodyne Industries, Inc. today announced the outcome of voting on Chapter 11 Plan of Reorganization:
 OUTCOME OF PLAN VOTING
 Envirodyne Industries, Inc. today announced that holders of its 14.5 percent Senior Discount Notes ("Old Discount Notes") and 14 percent Senior Subordinated Debentures ("Old 14 percent Debentures") have approved Debtors' First Amended Joint Plan of Reorganization (the "Plan"). The Plan was rejected by General Electric Capital Corp. and Envirodyne's general unsecured claims. In addition, holders of the company's 13.5 percent Subordinated Notes and existing common stock, which would receive no distribution under the Plan, are deemed to have rejected the Plan under the provisions of the Bankruptcy Code. The Plan has received the approval of the requisite creditors and Envirodyne intends to pursue confirmation despite the dissent of those impaired classes of claims. A court hearing to confirm the Plan is scheduled for Nov. 1, 1993.
 PLAN MODIFICATIONS
 On Sept. 23, 1993, the Debtors modified their Plan to change certain terms of the new notes to be issued under the Plan to the holders of the Old Discount Notes. Except for the modifications to the new notes, the proposed treatment of claims under the Plan is identical to that set forth in the Disclosure Statement. Pursuant to court order, the Debtors have mailed a Supplement to Debtors' First Amended Disclosure Statement to all claimants. Certain claimants may change their ballots by Oct. 15, 1993.
 The Plan modifications provide that on the effective date the holders of the Old Discount Notes shall receive their pro rata share of $219,262,000 in new notes in full satisfaction of their claims. The terms of the new notes have been modified as follows:
 -- INTEREST RATE.
 The Interest rate on the new notes shall be 10.25 percent per year instead of the 9.75 percent contained in the Plan.
 -- CALL PROTECTION
 The provision contained in the Plan relating to the optional redemption of the new notes has been modified to provide that Envirodyne may, at its option, redeem the new notes in whole or in part at any time, at a price equal of 106 percent of the principal amount thereof until the first anniversary of the effective date. The redemption price shall be reduced by 1 percent each year thereafter until the sixth anniversary of the effective date. Upon redemption all interest accrued to the redemption date will be paid.
 -- ACCRETION THROUGH EFFECTIVE DATE.
 The aggregate principal amount of the new notes shall be the $219,262,000 contained in the Plan; provided, however, that if the effective date does not occur on or before Dec. 31, 1993 the aggregate principal of such new notes shall be increased by an amount equal to the interest accrued on such principal at a rate of 9.125 percent per year for the period from Dec. 31, 1993 to the effective date.
 The Debtors believe that the modifications described above will not adversely affect any class nor will they affect the Debtors' ability to consummate the Plan or make the distributions to creditors contemplated by the Plan. Nevertheless, the Bankruptcy Court has determined that the holders of the company's Old 14 percent Debentures, 13.5 percent Subordinated Notes, General Electric Capital Corp. and Envirodyne's general unsecured claims may change their previous vote on acceptance of the Plan. Those holders may execute a new ballot and return it to the Bankruptcy Court so it is received no later than Oct. 15, 1993.
 SUMMARY OF PLAN
 The Plan generally provides for Envirodyne creditors to be paid in accordance with the priorities established under the Bankruptcy Code and pursuant to intercreditor and subordination agreements. The Plan provides for the trade creditors of Envirodyne's subsidiaries to be paid in full in cash. All of the holders of debt securities issued by Envirodyne would receive under the Plan either new notes or common stock of the reorganized Envirodyne, except that the holders of the company's 13.5 percent Subordinated Notes, Envirodyne's most junior creditor class, would receive no distribution under the Plan.
 Under the Plan, holders of Old Discount Notes would receive $219,262,000 of new cash pay 10.25 percent Senior Notes due Dec. 1, 2001. Holders of Old 14 percent Debentures would receive shares of common stock representing approximately 96.6 percent of the initial common equity or the reorganized Envirodyne. The existing common stock of Envirodyne would be cancelled and the holder of such interest would receive no distribution. Shares of common equity would be reserved under the Plan for issuance pursuant to the management option plan. On a fully diluted basis, assuming all management options are exercised and favorable resolution of various disputed claims, the approximate common equity ownership of the reorganized Envirodyne would be distributed as follows:
 14 percent Senior Subordinated Debentures 88.7 percent
 11.25 percent Senior Pay-in-Kind Notes 3.0 percent
 Allowed General Unsecured Claims .1 percent
 Management Option Plan 8.2 percent
 -0- 10/4/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S Donovan, all of Envirodyne Industries, Inc., 708-575-2400/


CO: Envirodyne Industries, Inc. ST: Illinois IN: SU: BCY

WB -- NY091 -- 8509 10/04/93 16:17 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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