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COURT PAPERS DESCRIBE MODIFICATIONS TO E-II PLAN OF REORGANIZATION

 NEW YORK, May 21 /PRNewswire/ -- Representatives of E-II Holdings Inc. and of its Official Committee of Unsecured Creditors intend to file pleading today in support of the confirmation of E-II's plan of reorganization. The company is seeking to confirm its plan at a hearing scheduled to begin on Monday, May 24 in Federal Bankruptcy Court in New York.
 The papers to be filed in court today will describe a number of modifications to the company's plan that enhance the overall recovery to its creditors. A company spokesperson noted that "the plan modifications were made to reflect increased estimates of the company's liquidation value and reorganization value determined by the company's financial advisor, Bear Stearns & Co. Bear Stearns has updated its valuations for purposes of the confirmation hearing and in response to (i) certain favorable settlements achieved over the last few weeks with various parties; (ii) a modest improvement in the company's operations; and (iii) a general improvement in valuation parameters."
 The company intends to file the modifications to its plan of reorganization with the court on or prior to May 24. The modifications will result in holders of the company's senior subordinated notes receiving 100 percent of their allowed claim through a combination of cash, notes and stock in the reorganized company. In addition, the increased reorganization value will provide holders of the company's junior subordinated debentures debt and stock worth substantially more than the recoveries previously indicated.
 The documents to be filed with the court note that the company's plan, as modified, provides a recovery to creditors in excess of the recovery which would have been received by them under a proposal made by Carl Icahn, had that proposal been capable of being implemented. In depositions taken by the company and the Creditors' Committee of Mr. Icahn, it became obvious that there were no firm financing arrangements supporting the Icahn proposal, and that the Icahn proposal did not take into consideration a number of critical legal and financial requirements for confirmation or the significance to the company of the settlements reached with certain creditors.
 A significant advantage of the company's plan of reorganization is the ability for creditors to receive a substantial equity stake in the reorganized company and share in possible future appreciation. As previously announced, the committee concluded that this was not the right time or set of circumstances to sell the company's assets and that any decision regarding sales of assets were best left the reorganized company's board of directors.
 Other modifications the company's plan of reorganization will include the removal of restrictions on the transferability of shares received by holders of senior subordinated notes pursuant to a stock election feature in the company's plan and an increase in the exercise price of options granted to E-II's chief executive officer.
 Steve Green, E-II's chief executive officer, expressed optimism at the company's chances to emerge from bankruptcy shortly after the confirmation hearing. "The modifications to the plan along with the expected implementation of settlement agreements negotiated with various parties should satisfy all objections to the confirmation of the company's plan. The creditors have overwhelmingly voiced their desire to have E-II emerge from Chapter 11 by their support for the company's plan. 98 percent of the company's senior subordinated notes voted to accept the plan and the vast majority of the company's junior subordinated debentures, other than those held by Mr. Icahn, voted to accept the plan.
 "We have tried to approach the reorganization process in a manner that's fair to all of our creditors. In that regard, we have worked with the creditors' committee to establish a board of directors for the reorganized company that is representative of the creditor body. The company has offered two the nine seats to representatives of Mr. Icahn, four seats will be filled by either independents or members of management and three seats will be filled by representatives of Apollo Advisors, L.P.. It's time the company returned to the full time job of building its businesses in a competitive marketplace. Confirmation of E-II's plan will allow the company to emerge from bankruptcy with a rational capital structure and its management team intact."
 -0- 5/21/93
 /CONTACT: Michael W. Kempner or Michael Levine of MWW/Strategic Communications, Inc. 201-342-9500, for E-II Holdings Inc./


CO: E-II Holdings Inc. ST: New York IN: SU:

TS -- NY044 -- 1248 05/21/93 14:10 EDT
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Date:May 21, 1993
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