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ENVIRODYNE INDUSTRIES, INC. ANNOUNCES FILING OF CHAPTER 11 PETITION

 OAK BROOK, Ill., Jan. 7 /PRNewswire/ -- Envirodyne Industries, Inc. today announced the commencement of a proceeding in the U.S. bankruptcy court in Chicago, under chapter 11 of the bankruptcy code. The company will propose to restructure its indebtedness pursuant to the proceeding.
 Envirodyne is currently completing the negotiations of a debtor-in- possession (DIP) bank facility which, assuming bankruptcy court approval, will be used to fund the company's operations during the restructuring process. The company has sufficient cash resources to meet its working capital needs pending the completion of the DIP facility.
 Envirodyne expects promptly to file and seek approval of a plan of reorganization. Envirodyne anticipates that the plan of reorganization will provide for the payment in full of all trade creditors and that the company's operations will not be materially adversely affected by the pendency of the reorganization.
 On Nov. 19, 1992, the company announced that it had reached an agreement in principle with a committee of its bondholders for the restructuring of the company's indebtedness under its 14 percent senior subordinated debentures due 2001 and its 13-1/2 percent subordinated notes due 1996. The agreement in principle contemplated that the holders of such subordinated securities would exchange all their debt and interest claims for $147.5 million principal amount of new 11 percent senior subordinated notes, as well as common stock and warrants in the reorganized company. Assuming that the company's operations continue their present level of performance, the company anticipates that its proposed plan of reorganization would be substantially similar to the plan contemplated by the agreement in principle.
 -0- 1/7/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan of Envirodyne Industries, 708-575-2400/


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

SM -- NY080 -- 2715 01/07/93 13:37 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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