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BALLY MANUFACTURING ANNOUNCES NEXT STEP IN FINANCIAL RESTRUCTURING

 BALLY MANUFACTURING ANNOUNCES NEXT STEP IN FINANCIAL RESTRUCTURING
 CHICAGO, Sept. 21 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced today a further step it is considering in its financial restructuring which began in the fourth quarter of 1990. Bally announced that it is considering a recapitalization of its subsidiary, Bally's Health & Tennis Corporation, subject to the successful completion of its ongoing Consent Solicitations.
 The ongoing consent solicitations, which are scheduled to expire on Sept. 25, 1992, seek consents from holders of its 10 percent convertible subordinated debentures due 2006 and 6 percent convertible subordinated debentures due 1998 to permit Bally to issue common stock in lieu of cash in payment of interest in arrears and certain prepaid interest. Bally is also seeking consents from holders of its Series D convertible exchangeable preferred stock to issue common stock in lieu of cash in payment of dividends in arrears and, at the option of Bally, dividends due through Nov. 1, 1993.
 Bally common shareholders, at a special meeting held Sept. 16, 1992, 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. Upon successful consummation of the consent solicitations, and the payment in cash of interest in arrears to holders of the debentures who do not consent, Bally will have cured the last of its debt defaults and will be current on its interest and dividend obligations.
 Subject to successful completion of the ongoing consent solicitation, Bally is currently exploring a recapitalization of its Bally's Health & Tennis Corporation which would include a public offering of up to $200 million of subordinated notes and a reduction of the amount outstanding under Bally's Health & Tennis Corporation's bank credit agreement. The recapitalization is also designed to strengthen the financial structure of Bally's Health & Tennis Corporation. Under the terms of the proposal currently under consideration, upon completion of the recapitalization Bally would receive a maximum dividend of $10 million to $15 million, which would be used for anticipated tax payments and to improve its liquidity to enable it to meet future cash obligations, including future debt service on the 10 percent and 6 percent debentures, as they become due. Bally noted that no assurances can be given whether or when such a recapitalization would occur or what the terms of any new financing would be.
 Bally is one of the world's foremost operators of casino hotel resorts and fitness centers.
 A copy of the prospectus relating to the consent solicitations may be obtained by contacting the information agent, MacKenzie Partners, Inc., 156 Fifth Avenue, New York, N.Y., 10010.
 The common stock is being offered only through a prospectus. The consent solicitations are not being made to, and no consents are being solicited from holders in any jurisdiction in which the consent solicitations or the giving of a consent so solicited would not be in compliance with applicable federal and state securities laws.
 -0- 9/21/92
 /CONTACT: Michael Kempner or Stan Steinreich of MWW/Strategic Communications, Inc., 201-342-9500, for Bally Manufacturing/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU: RCN


PS -- NY089 -- 1841 09/21/92 16:33 EDT
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Publication:PR Newswire
Date:Sep 21, 1992
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