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BIOPLASTY REORGANIZATION TO BE FUNDED BY PRIVATE PLACEMENT RATHER THAN SHAREHOLDER CAPITAL CONTRIBUTIONS

 MINNEAPOLIS, Oct. 14 /PRNewswire/ -- Bioplasty, Inc. announced today that in light of an objection from the Securities and Exchange Commission, the Bankruptcy Court declined to rule that the capital contributions from shareholders provided in the proposed plan qualified for exemption from registration under Section 1145 of the Federal Bankruptcy Code. Consequently, the company has redrafted the plan of reorganization to provide for a private placement intended to comply with securities laws and which eliminates the provision for shareholders to retain their equity in the reorganized company by making a capital contribution.
 Pursuant to the redrafted plan, all existing shares will be canceled and the private placement would be made for four million shares at $.50 per share constituting approximately 50 percent of the outstanding stock of the reorganized company. The remaining 50 percent of the outstanding stock would be distributed to creditors.
 -0- 10/14/93
 /CONTACT: Daniel G. Holman of Bioplasty, 612-378-1180/


CO: Bioplasty Inc. ST: Minnesota IN: MTC SU:

CP-DB -- MN025 -- 2513 10/14/93 18:40 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
Words:170
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