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ENVIRODYNE INDUSTRIES, INC. ANNOUNCES APPROVAL OF ADEQUACY OF ENVIRODYNE'S AMENDED DISCLOSURE STATEMENT

 OAK BROOK, Ill., Aug. 11 /PRNewswire/ -- Envirodyne Industries, Inc. today announced that Chief Judge John D. Schwartz of the U.S. Bankruptcy Court for the Northern District of Illinois approved the adequacy of Envirodyne's amended disclosure statement. The debtors will mail the plan of reorganization, disclosure statement and ballots to the affected creditors by Aug. 16, 1993, and solicit their votes to accept the plan. Ballots must be returned by Oct. 1, 1993. If the plan is approved by the requisite creditors, a court hearing to confirm the plan is scheduled for Nov. 1, 1993.
 The plan provides for Envirodyne's creditors to be paid in accordance with the priorities established under the Bankruptcy Code and pursuant to intercreditor and subordination agreements. The plan provides for the trade creditors of Envirodyne's subsidiaries to be paid in full in cash. All of the holders of debt securities issued by Envirodyne would receive under the plan either new notes or common stock of the reorganized Envirodyne, except that the holders of the company's 13.5 percent subordinated notes, Envirodyne's most junior creditor class, would receive no distribution under the plan.
 Under the plan, holders of Envirodyne's 14.5 percent senior discount notes would receive $219,262,000 of new cash pay 9.75 percent senior notes due Dec. 1, 2001. Holders of Envirodyne's 14 percent senior subordinated debentures would receive shares of common stock representing approximately 96.6 percent of the initial common equity of the reorganized Envirodyne. The existing common stock of Envirodyne would be canceled and the holder of such interest would receive no distribution. Shares of common equity would be reserved under the plan for issuance pursuant to a management option plan. On a fully diluted basis, assuming all management options are exercised and favorable resolution of various disputed claims, the approximate common equity ownership of the reorganized Envirodyne would be distributed as follows:
 14 percent senior subordinated debentures 88.7 percent
 11.25 percent senior pay-in-kind notes 3.0 percent
 Allowed general unsecured claims .1 percent
 Management option plan 8.2 percent
 Envirodyne intends to pursue such confirmation despite the dissent by one or more impaired classes of claims or interests, provided that the other requirements of the Bankruptcy Code have been met. The company hopes to consummate the plan by the end of 1993.
 -0- 8/11/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan, 708-575-2400, all for Envirodyne Industries, Inc./


CO: Envirodyne Industries, Inc. ST: Illinois IN: SU:

CK -- NY074 -- 1737 08/11/93 13:56 EDT
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Publication:PR Newswire
Date:Aug 11, 1993
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