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BALLY ANNOUNCES EXPIRATION & SUCCESSFUL COMPLETION OF ITS CONSENT SOLICITATIONS; ACTION COMPLETES SIGNIFICANT PHASE OF RESTRUCTURING

 BALLY ANNOUNCES EXPIRATION & SUCCESSFUL COMPLETION OF ITS CONSENT
 SOLICITATIONS; ACTION COMPLETES SIGNIFICANT PHASE OF RESTRUCTURING
 CHICAGO, Sept. 28 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced today the expiration and successful completion of its consent solicitations with respect to its 10 percent convertible subordinated debentures due 2006, 6 percent convertible subordinated debentures due 1998 and Series D convertible exchangeable preferred stock and its acceptance of the consents delivered.
 As a result of the consent solicitations, Bally will issue common stock in lieu of cash in payment of interest in arrears and certain prepaid interest to those debentureholders who have consented. Bally will also issue common stock in lieu of cash in payment of dividends in arrears and, at Bally's option, dividends due through Nov. 1, 1993 to the holders of its Series D preferred stock. On Sept. 16, 1992, Bally common shareholders approved an amendment to the company's Certificate of Incorporation to permit the issuance of common stock in lieu of cash to its preferred stockholders.
 Arthur Goldberg, chairman of the board of Bally Manufacturing, stated: "The response from our preferred stock and debenture holders was very gratifying. With the successful consummation of the consent solicitation we have completed a significant phase of the financial restructuring that began when I assumed the chairmanship in October, 1990. For the first time in nearly two years, we will be current on all of our debt obligations."
 Bally received, on a preliminary basis, consents with respect to approximately 79 percent of the outstanding 10 percent debentures, 77 percent of the outstanding 6 percent debentures and a majority of the outstanding preferred stock. Bally also determined to waive the conditions set forth in the consent solicitations that require the approval of 80 percent of the outstanding 10 percent debentures and 6 percent debentures be received, if necessary.
 The company intends to pay cash for interest accrued on the 10 percent debentures and 6 percent debentures to holders who did not consent. The company expects to set a record date to determine holders entitled to receive that payment in the next few days. Payment of the interest in arrears to the nonconsenting holders will eliminate the defaults under the debentures and Bally's last remaining defaults on its indebtedness.
 Bally expects to issue approximately 5.8 million shares of common stock to the debenture holders who consented and expects to issue approximately one million shares of common stock with respect to dividends in arrears on the Series D preferred stock.
 Salomon Brothers Inc served as financial advisor to Bally in connection with the consent solicitations.
 Bally is one of the world's foremost operators of casino hotel resorts and fitness centers.
 -0- 9/28/92
 /CONTACT: Michael Kempner or Nina Girgis of MWW Strategic Communications, 201-342-9500, for Bally Manufacturing/
 (BLY) CO: Bally Manufacturing ST: Illinois IN: CNO SU:


TS -- NY006 -- 3802 09/28/92 08:00 EDT
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Publication:PR Newswire
Date:Sep 28, 1992
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