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BALLY MANUFACTURING CORPORATION RECEIVES COMMON STOCKHOLDER APPROVAL OF AMENDMENT FOR PREFERRED STOCKHOLDER CONSENT SOLICITATION

BALLY MANUFACTURING CORPORATION RECEIVES COMMON STOCKHOLDER APPROVAL OF
 AMENDMENT FOR PREFERRED STOCKHOLDER CONSENT SOLICITATION
 CHICAGO, Sept. 16 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) announced that its common stockholders have approved the amendment to Bally's Restated Certificate of Incorporation (the "Amendment") permitting Bally to issue common stock to holders of its Series D convertible exchangeable preferred stock in lieu of cash in payment of dividends in arrears of $7.00 per share, and, at the option of Bally, dividends due through Nov. 1, 1993.
 Approval of the amendment also requires the consent of the holders of at least a majority of the outstanding shares of the preferred stock. If approved, holders of the preferred stock would receive shares of common stock in payment of dividends in arrears valued at the average reported New York Stock Exchange price for a 15 trading-day-period prior to consummation of the solicitation.
 Bally is also soliciting consents from the holders of Bally's 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. Holders of the 10 percent debentures would receive common stock valued at $360.42 per $1,000 principal amount (including interest on interest due through Sept. 15, 1992) to be adjusted through the payment date, and holders of 6 percent debentures would receive common stock valued at $182.91 per $1,000 principal amount (including interest on interest due through Sept. 15, 1992) to be adjusted through the payment date.
 The debenture consent solicitations are each subject to the condition, among others, that they shall have been accepted by the holders of not less than 80 percent in principal amount of the respective debentures. Bally expects to pay past-due interest (but not prepaid interest) in cash to non-consenting holders of debentures, if any, following consummation of the consent solicitations.
 Each of the consent solicitations will expire at 5 p.m., New York City time, on Sept. 25, 1992, in each case, unless extended by Bally.
 "The approval by the common stockholders is a significant step in the successful completion of the consent solicitations," said Bally Chairman Arthur M. Goldberg.
 "Moreover, the approval demonstrates our stockholders' continuing support of our restructuring efforts," Goldberg continued.
 The consenti?tations are one of the elements of the restructuring of Bally and its subsidiaries commenced in the fourth quarter of 1990. The consent solicitations are intended to enable Bally to eliminate existing payment defaults under the debentures and bring Bally current on its dividend obligations under the preferred stock as well as to help reduce, temporarily, cash payment requirements, giving Bally additional time to pursue its previously announced restructuring goals. If the consent solicitations are successful, then Bally would become current on all of its existing debt


obligations for the first time since the fourth quarter of 1990.
 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.
 Bally Manufacturing Corporation is one of the world's foremost operators of casino hotel resorts and fitness centers.
 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 solicitation or the giving of a consent so solicited would not be in compliance with applicable federal and state securities laws.
 -0- 9/16/92
 /CONTACT: Michael Kempner or Stan Steinreich of MWW/Strategic Communications, 201-342-9500, for Bally Manufacturing/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois, Nevada, New Jersey IN: CNO SU:


PS -- NY064 -- 0309 09/16/92 16:35 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
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