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ENVIRODYNE INDUSTRIES AND SUBSIDIARIES FILE JOINT PLAN OF REORGANIZATION

 OAK BROOK, Ill., June 2 /PRNewswire/ -- Envirodyne Industries, Inc. and its subsidiaries announce that they have filed a joint plan of reorganization and disclosure statement with the U.S. Bankruptcy Court.
 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 will receive either new notes or common stock of the reorganized Envirodyne, except that the holders of the company's 13-1/2 percent subordinated notes, Envirodyne's most junior creditor class, will receive no distribution under the plan.
 Under the plan, holders of Envirodyne's 14-1/2 percent senior discount notes will receive $219,262,000 of new cash pay 9-3/4 percent senior notes due Dec. 1, 2001. Holders of Envirodyne's 14 percent senior subordinated debentures will 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 will be canceled and the holder of such interest will receive no distribution.
 Shares of common equity will be reserved 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
 11-1/4 Percent Senior Pay in Kind Notes 3.0 percent
 Allowed General Unsecured Claims .1 percent
 Management Option Plan 8.2 percent
 The company has requested that the court schedule a hearing on the disclosure statement and will seek the support of its senior secured lenders, equipment lessors, members of the Official Bondholders' Committee and members of the Trade Creditors' Committee. Envirodyne intends to pursue such confirmation despite the dissent by one or more impaired classes of claims of interests, provided that the other requirements of the bankruptcy code have been met. The company hopes to confirm and consummate the plan by the end of 1993.
 -0- 6/2/93
 /CONTACT: J.S. Corcoran, S.M. Schuster or G.S. Donovan of Envirodyne, 708-575-2400/


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

SM -- NY035 -- 4414 06/02/93 11:21 EDT
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Publication:PR Newswire
Date:Jun 2, 1993
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