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SCI TELEVISION ANNOUNCES SUCCESSFUL CONCLUSION OF A 'PREPACKAGED' CHAPTER 11 SOLICITATION; FILING WILL NOT INCLUDE TELEVISION SUBSIDIARIES

 DENVER, March 4 /PRNewswire/ -- SCI Television, Inc. announced today that it had successfully completed its solicitation of acceptances for a "prepackaged" plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code and filed the plan with the Bankruptcy Court for the District of Delaware.
 The company announced that 100 percent of its approximately $661 million principal amount of senior secured bank debt has approved the plan and approximately 90 percent of its senior unsecured debt held by holders who voted on the plan (approximately 73 percent of the total $365 million amount of outstanding claims) had voted to accept the plan.
 The prepackaged plan includes a cash investment of $100 million by Andrews Group, Incorporated, a wholly owned subsidiary of McAndrews & Forbes Holdings, Inc., in return for approximately 52 percent of the common stock of the reorganized company. In addition, the plan contemplates the purchase by SCI of television station WTVT in Tampa, Fla., from GHTV, Inc., for approximately $165 million.
 The reorganization does not contemplate bankruptcy filings by SCI's six television station subsidiaries which will continue to operate outside of Chapter 11. The prepackaged plan includes three other ancillary subsidiaries of SCI.
 "It will be business as usual at all our stations," said George N. Gillett, CEO and president of SCI. "Our programming and day-to-day operations should be unaffected by this action." He said the company expects the reorganization plan to be approved by the court sometime this spring.
 Pursuant to the reorganization plan, holders of SCI's senior secured bank debt will receive new senior secured indebtedness in a principal amount equal to approximately 82.5 percent of their claims under the current credit agreements and 8.5 million shares of common stock (representing approximately 35 percent of the reorganized company's common stock on a fully diluted basis).
 Holders of SCI's senior unsecured debt will receive 1.5 million shares of common stock and warrants to purchase another 1.5 million shares of common stock (together representing approximately 13 percent of the reorganized company's common stock on a fully diluted basis). Holders of SCI's $259 million of subordinated public debt and its equity securities will not receive distributions under the plan.
 SCI will retain its current management team following the restructuring.
 SCI also announced that on Tuesday, March 2, four holders of SCI's 16 1/2 percent Senior Subordinated Debentures (who together claim to hold approximately $2,360,000 of such securities) had filed an involuntary bankruptcy petition against SCI in the Bankruptcy Court for the District of Delaware. SCI responded to this filing today with a filing that includes the prepackaged plan and does not anticipate that the involuntary filing will have an impact on the reorganization.
 SCI is a holding company based in Denver which operates television stations in Atlanta, Boston, Detroit, Cleveland, San Diego and Milwaukee.
 Andrews Group, based in Los Angeles, controls a number of entertainment companies including New World Entertainment and Marvel Entertainment Group (NYSE: MRV).
 -0- 3/4/93
 /CONTACT: Patricia Mills of WJBK-TV 2, 313-552-5273; or Gary Holmes of Robinson, Lake, Lerer & Montgomery, 212-484-7736/


CO: SCI Television, Inc.; Andrews Group, Incorporated ST: Colorado, California IN: ENT SU: BCY RCN

SB-JG -- DE035 -- 3110 03/04/93 15:49 EST
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Publication:PR Newswire
Date:Mar 4, 1993
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