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COMMITTEE OF BONDHOLDERS OF ENVIRODYNE PROPOSAL

 NEW YORK, June 4 /PRNewswire/ -- The Official Committee of Bondholders' ("Bondholders' Committee") of Envirodyne Industries, Inc. announced that it has agreed to and transmitted a restructuring proposal to Envirodyne. The Bondholders' Committee has rejected Envirodyne's cram-down plan of reorganization filed on June 2, 1993 since, among other reasons, the Bondholders' Committee believes that Envirodyne's plan would not permit Envirodyne to emerge from Chapter 11 in the near future and would result in significant litigation and potential erosion of values for all constituencies. The Bondholders' Committee was established by the United States Bankruptcy Court and is comprised of holders of Envirodyne's senior discount notes due 1997, 14 percent senior subordinated debentures due 2001 and 13-1/2 percent subordinated notes due 1996, as well as the indenture trustees for those three issues of Envirodyne's public debt.
 The Bondholders' proposal anticipates that a plan of reorganization for Envirodyne and its United States subsidiaries will be consummated prior to Dec. 31, 1993. It calls for changes to the amortization schedule for Envirodyne's senior bank lenders. Under the Bondholders' proposal, Envirodyne's trade debt, GECC lease obligations and foreign bank debt would be unimpaired. With respect to Envirodyne's public debt, the Bondholders' proposal provides as follows:
 1. The holders of Envirodyne's senior discount notes would receive, for every $1,000 of accreted claim as of the petition date, (i) $1,000 principal amount of new senior notes maturing at the earlier of the sixth anniversary of the consummation date of the plan of reorganization and Dec. 31, 1999, accruing interest at 10.25 percent per annum, and (ii) an additional principal amount of new senior notes equal to the accreted claim, as of the petition date, of such holders times 9.125 percent, compounded semi-annually, for the period from Jan. 7, 1993 through the earlier of the date a plan of reorganization is consummated and Dec. 31, 1993 (the effective date). The new senior notes will not be callable for the first three years but will be callable thereafter at a premium of 103 percent, declining ratably on an annual basis to maturity.
 2. The holders of Envirodyne's 14 percent senior subordinated debentures would receive, in exchange for their notes, (i) $79,000,000 principal amount of senior subordinated notes (the new senior subordinated notes), paying cash interest at 10.75 percent per annum, and maturing on the seventh anniversary of the effective date; (ii) $129,712,000 face amount (with an issue price of $59,300,000) of senior subordinated discount notes (the new senior subordinated discount notes), maturing on the seventh anniversary of the effective date and accreting interest (compounded semi-annually) at 11.50 percent per annum; and (iii) 16,500,000 shares of Envirodyne's common stock, representing 82.5 percent of the initial common equity of Envirodyne at the effective date.
 3. The holders of Envirodyne's 13-1/2 percent subordinated notes would receive, in exchange for their notes, (i) $24,500,000 principal amount of the new senior subordinated notes; (ii) $32,155,000 face amount (with an issue price of $14,700,000) of the new senior subordinated discount notes; and (iii) 3,500,000 shares, representing 17.5 percent of the initial common equity of Envirodyne at the effective date.
 In addition, the Bondholders' proposal contemplates that the holders of Envirodyne's 14 percent senior subordinated debentures and 13-1/2 percent subordinated notes would shares, on a 15 percent - 85 percent basis, respectively, in certain settlement or litigation proceeds. The Bondholders' proposal anticipates that certain litigation claims will be pursued by the Bondholders' committee and, if not settled prior to Sept. 3, 1993, the Bondholders' proposal provides for the establishment of a litigation trust to fund litigation against certain defendants. The litigation trust will be funded with $1,500,000 principal amount of new senior subordinated notes and $2,187,000 face amount (with an issue price of $1,000,000) of new senior subordinated discount notes.
 As previously disclosed by Envirodyne, it and its United States subsidiaries filed for bankruptcy protection on Jan. 7, 1993, following the filing of an involuntary petition against Envirodyne by some of the holders of its 13-1/2 percent subordinated notes. During the past several months, the members of the Bondholders' Committee have negotiated among themselves to address the restructuring of Envirodyne's capital structure.
 -0- 6/4/93
 /CONTACT: Scott Schroepfer, chairman of the Bondholders' Committee, IDS Financial Corporation, 612-671-7653, or Anthony Grillo, financial advisor to the Bondholders' Committee, The Blackstone Group, 212-754-7373, both for Envirodyne Industries, Inc./


CO: Official Committee of Bondholders' of Envirodyne Industries, Inc.;
 Envirodyne Industries, Inc. ST: IN: SU: RCN


TM-LD -- NY064 -- 5666 06/04/93 18:24 EDT
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Date:Jun 4, 1993
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