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 OAK BROOK, Ill., Dec. 31 /PRNewswire/ -- Envirodyne Industries, Inc. (NASDAQ Small Cap: EDYN) today announced that it has consummated its First Amended Plan of Reorganization as Twice Modified, which had previously been confirmed by Chief Judge John D. Schwartz of the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern
Division. A $195,000 post-emergence senior credit facility has been provided by a syndicate of lenders led by Continental Bank N.A. and Citibank, N.A. for certain Plan distributions and the company's ongoing financing needs. Bankers Trust Company is acting as exchange agent for purposes of distributing the new securities issued under the Plan to the former holders of the company's now cancelled Senior Discount Notes, 14% Senior Subordinated Debentures, 13-1/2% Subordinated Notes and other holders of allowed claims under the Plan.
 Summary of the Plan
 The trade creditors of Envirodyne's subsidiaries and Debtors' allowed, priority and administrative claims were paid in full. Holders of $250,000,000 face amount of Envirodyne's old 14-1/2% Senior Discount Notes received $219,097,000 of new cash pay 10-1/4% Senior Notes Due Dec. 1, 2001. Envirodyne may, at its option, redeem the new Notes, in whole or in part at any time, at a price equal to 106% of the principal amount until the first anniversary of the effective date. The redemption price is reduced 1% each year thereafter until the sixth year of the anniversary of the effective date.
 Holders of $200,000,000 face amount of Envirodyne's old 14% Senior Subordinated Debentures received a pro rata share of 12,118,602 shares of common stock representing approximately 90% of the primary equity of Envirodyne.
 The Holders of $91,350,000 face amount of Envirodyne's old 13-1/2% Subordinated Notes received a pro rata share of (i) 837,900 shares of new common stock of Envirodyne representing approximately 6% of the primary equity of reorganized Envirodyne; and (ii) Warrants to purchase 10% of the fully diluted new common stock of the reorganized Envirodyne. The Warrants are exercisable at an exercise price of $17.25 per share, will mature five years from issuance and will be non-callable.
 Holders of $86,350,000 face amount of Envirodyne's old 13-1/2% Subordinated Notes may choose to grant a limited release to Salomon Brothers Inc and its affiliates from all claims arising out of Emerald Acquisition Corp.'s 1989 acquisition of Envirodyne. If such old 13-1/2% Noteholders (other than Salomon Brothers and its affiliates) so elect, they will receive a pro rata share of 445,928 shares of new common stock of reorganized Envirodyne. The company will send notice of this right to grant the optional release to the old 13-1/2% Noteholders who will have at least 20 days to make the election.
 Envirodyne's Common Stock is listed on the Nasdaq SmallCap Market under the symbol EDYN.
 Emerald Acquisition Corp., the sole shareholder of Envirodyne Industries, Inc., did not receive any distribution under the Plan.
 Under the Plan, 600,000 shares of common equity of reorganized Envirodyne are reserved for issuance under a management option plan.
 After reserving shares for payment of indenture trustees' fees, the approximate distribution of the primary and fully diluted common equity under the Plan was as follows (the fully diluted equity does not take into account the effects of the resolution of certain disputed claims):
 Primary Fully Diluted
 Shares Percent Shares Percent
 14% Sr. Sub. Notes 12,118,602 89.77 12,118,602 77.68
 13-1/2% Sub. Notes 837,900 6.21 837,900 5.37
 Warrants --- -- 1,500,000 9.61
 Release 445,928 3.30 445,928 2.86
 Management Options -- -- 600,000 3.85
 Allowed General
 Unsecured 97,570 .72 97,570 .63
 TOTAL 13,500,000 100.0 15,000,000 100.0
 -0- 12/31/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan of Envirodyne, 708-575-2400/

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

GK -- NY014 -- 8329 12/31/93 15:32 EST
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Publication:PR Newswire
Date:Dec 31, 1993

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