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BALLY MANUFACTURING CORPORATION ANNOUNCES PROGRESS IN THE REORGANIZATION OF ITS NEVADA CASINO OPERATIONS

 BALLY MANUFACTURING CORPORATION ANNOUNCES PROGRESS
 IN THE REORGANIZATION OF ITS NEVADA CASINO OPERATIONS
 /repeating from yesterday/
 CHICAGO, June 17 /PRNewswire/ -- Bally Manufacturing Corporation


(NYSE: BLY) announced today that a general understanding had been reached between Bally's Grand, Inc., the Bally subsidiary that owns and operates Bally's two Nevada casino resorts operating as Bally's Casino Resort-Las Vegas and Bally's Casino Resort-Reno, and committees representing groups of holders of Bally's Grand 11-1/2 percent First Mortgage Notes and 13 percent Second Mortgage Notes on a consensual resolution of the Bally's Grand chapter 11 case. Bally's Grad has been operating as a debtor-in-possession under chapter 11 of the U.S. Bankruptcy Code since November 1991.
 The understanding, which was read into the record at a hearing held yesterday before the Bankruptcy Court for the District of New Jersey in Camden, N.J., provides that holders of Bally's Grand 11-1/2 percent First Mortgage Notes would receive, in the aggregate, $250.0 million of a new issue of 8-year 12 percent First Mortgage Notes which would be secured by all of the assets of Bally's Grand, $42.5 million in cash, and 85 percent of the common stock of the reorganized company.
 Holders of Bally's Grand 13 percent Second Mortgage Notes and other unsecured creditors would receive, in the aggregate, $27.5 million of the same new First Mortgage Notes, $4.5 million in cash, 15 percent of the common equity to be issued by the reorganized company, and 7-year warrants to purchase an additional 7 percent of the common stock for $10.00 per share.
 The arrangement does not address distributions to the holders of Bally's Grand 12 percent subordinated debentures, who have not agreed to this proposal. Bally's Grand would enter into a 10-year management contract with Bally Manufacturing Corporation pursuant to which Bally Manufacturing would provide certain management and other services, and the use of the "Bally" name and certain software, to reorganized Bally's Grand and would receive a $3.0 million annual management fee.
 The understanding is subject to a number of conditions, including completion of the sale of Bally's Casino Resort-Reno. Bally's Grand intends to file an amended plan of reorganization and disclosure statement incorporating this understanding with the Bankruptcy Court in the near future. It is anticipated that the Bankruptcy Court will conduct a hearing on the adequacy of that revised disclosure statement on June 26, 1992. If the Court approves the disclosure statement, Bally's Grand could then solicit votes from its creditors on this plan. The plan is ultimately subject to the approval of Bally's Grand's creditors and Nevada regulatory authorities and confirmation by the Bankruptcy Court.
 In addition, at yesterday's hearing before the Bankruptcy Court, the Court approved the sale by Bally's Grand of its Reno casino resort to Hilton Hotels Corporation for a purchase price of $83.0 million in cash plus the assumption of certain liabilities associated with the business. The court's approval of the sale of Bally's Reno to Hilton came after the court conducted an auction for the property in which Hilton was the successful bidder. The sale is subject to satisfaction of certain closing conditions, including approval of Nevada gaming authorities. It is anticipated that the transaction will close by July 31, 1992.
 Under the Bally's Grand plan of reorganization, if confirmed, $25.0 million of the proceeds from the sale of Bally's Reno would be used to redeem the new first mortgage bonds to be issued under the plan, and the remainder of the proceeds would be used to fund capital improvements for Bally's Las Vegas casino resort.
 -0- 6/18/92
 /CONTACT: Michael W. Kempner or Nina Girgis of Bally Manufacturing, 201-342-9500/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois, Nevada IN: CNO SU:


PS -- NY009 -- 1359 06/18/92 08:38 EDT
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Publication:PR Newswire
Date:Jun 18, 1992
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