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ENVIRODYNE INDUSTRIES, INC., ANNOUNCES PLAN MODIFICATION

 OAK BROOK, Ill., Oct. 8 /PRNewswire/ -- Envirodyne Industries, Inc., today announced that it has negotiated the terms of a consensual modification to its plan of reorganization with the official committee of bondholders (committee). On Oct. 5, 1993, the members of the committee voted 4-2 in favor of the consensual plan. Except for certain modifications, the proposed treatment of all claims under second modification is identical to that set forth in the debtors' first amended joint plan of reorganization as modified, dated Oct. 1, 1993. Principal economic changes are:
 -- Class 4 (Old 14 Percent Notes). Class 4 shall receive new common stock representing approximately 90 percent of the equity of reorganized Envirodyne rather than the approximate 96.6 percent under the original plan.
 -- Class 5 (11-1/4 Percent Senior PIK Note). The 11-1/4 Percent Senior PIK Note shall be cancelled and extinguished, and the holder shall receive no distribution on such note in reorganized Envirodyne.
 -- Class 6 (Old 13-1/2 Percent Notes). Class 6 shall receive new common stock representing approximately 10 percent of the equity of reorganized Envirodyne. In addition, Class 6 shall receive warrants exercisable into 10 percent of the fully diluted equity of the reorganized Envirodyne. The warrants will be exercisable at an exercise price of $17.25 per share, will mature five (5) years from issuance and will be non-callable.
 The debtors intend to file a second modification to their first amended joint plan of reorganization with the Bankruptcy Court later this week incorporating the above modifications and to mail new ballots as soon as permitted. A court hearing to confirm the plan is scheduled for Nov. 1, 1993.
 The approximate distribution of the primary common equity under the original plan and the consensual plan is as follows (the primary equity does not take into account the effects of the warrants, management options or resolutions of certain disputed claims):
 Original Second
 Plan Modification
 Old 14 Percent Debentures (Class 4) 96.6 pct. 90 pct.
 11-1/4 Percent Senior PIK Note (Class 5) 3.3 pct. --
 13-1/2 Percent Subordinated Notes (Class 6) -- 10 pct.
 -0- 10/8/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan of Envirodyne, 708-575-2400/


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

TW -- NY018 -- 0111 10/08/93 11:23 EDT
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Publication:PR Newswire
Date:Oct 8, 1993
Words:383
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