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LVI GROUP ANNOUNCES AGREEMENT ON DEBT RESTRUCTURING

 NEW YORK, Feb. 26 /PRNewswire/ -- The LVI Group Inc. (NYSE: LVI) today announced that it has reached a definitive agreement on a restructuring proposal with representatives of certain holders of the outstanding Class A and Class B Senior Secured Redeemable Notes of NICO, Inc., LVI's principal wholly owned subsidiary. Pursuant to the agreement, a newly formed company would acquire from participating holders of the notes their notes, together with a portion of their LVI common stock, and such company would then exchange such notes and stock for all of the stock of LVI Environmental Services Group Inc., a subsidiary of LVI that conducts its asbestos abatement operations. As a consequence, LVI's outstanding consolidated indebtedness would be reduced, assuming 100 percent participation, from approximately $45.6 million to approximately $4.0 million. The newly formed company would also acquire a 2-1/2 year warrant to purchase 49 percent of the common stock of Hallmark Electrical Supplies Corp., a subsidiary of LVI engaged in the distribution of electrical supplies. Burton T. Fried, LVI's president, will continue as president of LVI Environmental. In addition, the agreement provides for the payment to LVI by LVI Environmental following the closing of the restructuring of an aggregate of up to $1.5 million in installments to fund operating expenses and working capital requirements.
 The agreement is the result of negotiations between representatives of certain noteholders and LVI. The closing under the agreement is contingent upon participation by holders of at least 95 percent of the outstanding aggregate principal amount of each class of the notes. The closing is also contingent upon satisfaction of certain other conditions to the satisfaction of the noteholders. Accordingly, no assurance can be given that the proposed restructuring, which is scheduled to close in March 1993, will be effected.
 LVI, through its subsidiaries, is a national asbestos abatement contractor providing asbestos removal and related services, and a distributor of electrical supplies for the construction industry both domestically (in the New York City area) and for export. During 1992, LVI's asbestos abatement operations (LVI Environmental) and its electrical supply business (Hallmark) accounted for approximately 75 percent and 25 percent, respectively, of LVI's revenues from operations.
 -0- 02/26/93
 /CONTACT: Burton T. Fried, president of the LVI Group, Inc., 212-951-3660/
 (LVI)


CO: LVI Group Inc.; NICO, Inc. ST: New York IN: SU: RCN

KD-AH -- NY068 -- 1043 02/26/93 17:46 EST
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Publication:PR Newswire
Date:Feb 26, 1993
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