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BALLY SIGNS CONSENSUAL AGREEMENT WITH BONDHOLDERS REGARDING ITS SUBSIDIARY'S PLAN OF REORGANIZATION

 BALLY SIGNS CONSENSUAL AGREEMENT WITH BONDHOLDERS
 REGARDING ITS SUBSIDIARY'S PLAN OF REORGANIZATION
 CHICAGO, Aug. 18 /PRNewswire/ -- Bally Manufacturing Corporation (NYSE: BLY) (Bally) announced today that Bally, Bally's Grand, Inc., its subsidiary which owns and operates the Bally's Las Vegas casino hotel, Harris Trust and Savings Bank, in its capacity as Indenture Trustee with respect to Bally's Grand's 11-1/2 percent First Mortgage Notes due April 15, 1996 (the First Mortgage Notes), the official committee representing the holders of Bally's Grand's 13 percent Second Mortgage Notes due Sept. 1, 1996 (the Second Mortgage Notes), the official committee representing Bally's Grand's unsecured creditors, including the holders of Bally's Grand's 12 percent senior subordinated debentures due Sept. 1, 1996 (the subordinated debentures), and Fidelity Investments Corp. have signed an agreement providing for a consensual resolution of all outstanding issues among the parties with respect to Bally's Grand's Third Amended Plan of Reorganization (the Plan).
 Based on this agreement, Bally's Grand has amended its Plan to provide, among other things, for changes in the consideration to be distributed to certain of its creditors.
 Under the amended Plan, all outstanding Second Mortgage Notes will be exchanged for $27.5 million principal amount of new 8-year 12 percent First Mortgage Notes which will be secured by the Bally's Las Vegas casino hotel facility and other assets of Bally's Grand, plus 1,115,000 shares (approximately 11 percent) of the new common stock of reorganized Bally's Grand that will be issued upon the effectiveness of the amended Plan, warrants to purchase 752,688 shares of the new common stock of reorganized Bally's Grand and a total of $10.5 million in cash.
 In addition under the amended Plan, all outstanding subordinated debentures will be exchanged for 385,000 shares (approximately 4 percent) of the new common stock of reorganized Bally's Grand.
 The Plan, as amended, does not change the distributions to be made to the holders of First Mortgage Notes. All outstanding First Mortgage Notes will be exchanged for $250 million principal amount of the new 8-year 12 percent First Mortgage Notes, 8.5 million shares (approximately 85 percent) of the new common stock and a total of $42.5 million in cash.
 The Bally's Grand bankruptcy case is currently pending before the United States Bankruptcy Court for the District of New Jersey. It is a condition to the agreement among the parties that the Plan, as amended, be confirmed by the Bankruptcy Court by Dec. 31, 1992, and that the Plan, as amended, become effective no later than Dec. 31, 1993, or one year after the Bankruptcy Court's entry of an order confirming the Plan, as amended. A confirmation hearing with respect to the Plan of Reorganization is currently scheduled for Sept. 15, 1992.
 Bally Manufacturing is one of the world's foremost operators of casino hotels and fitness centers.
 -0- 8/18/92
 /CONTACT: Michael W. Kempner or Stan Steinreich MWW/Strategic Communications, 201-342-9500, for Bally Manufacturing/
 (BLY) CO: Bally Manufacturing Corporation ST: Illinois IN: CNO SU:


TS -- NY005 -- 0776 08/18/92 07:39 EDT
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Publication:PR Newswire
Date:Aug 18, 1992
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