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SUNSHINE MINING COMPANY ANNOUNCES BONDHOLDER CONSENT TO FILE SUNSHINE PRECIOUS METALS, INC., PREPACKAGED BANKRUPTCY PLAN

 SUNSHINE MINING COMPANY ANNOUNCES BONDHOLDER CONSENT TO FILE
 SUNSHINE PRECIOUS METALS, INC., PREPACKAGED BANKRUPTCY PLAN
 DALLAS, March 9 /PRNewswire/ -- Sunshine Mining Company (NYSE: SSC) announced today that its subsidiary, Sunshine Precious Metals, Inc., had successfully achieved the requisite bondholder consent to file the Sunshine Precious Metals, Inc. Prepackaged Bankruptcy Plan, subject to successful solicitation of California holders, with approximately 70 percent of the bonds voting approving the plan. Sunshine Precious Metals, having received the required consents of substantially all of its bondholders except California residents, will today file a proceeding under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Idaho for the purpose of implementing the Prepackaged Plan. Bonds tendered into the exchange offer totaled approximately $35 million, less than the requisite amount of bonds required and, therefore, the exchange offer was not consummated.
 The Prepackaged Plan is designed to eliminate the cash debt service requirements of the Silver Indexed Bonds, thereby allowing Sunshine Precious Metals to conserve cash while awaiting higher silver prices. Sunshine Precious Metals, Inc., expects to be able to utilize the common shares of its parent company, Sunshine Mining Company, to pay the interest and principal of the bonds, if necessary, possibly reducing aggregate cash debt service requirements between 1991 and 1994 by over $50 million as a result of the plan's confirmation. No operations, employees or vendors of Sunshine Precious Metals will be affected by the plan. The only creditors of Sunshine Precious Metals affected by the plan are the Silver Indexed Bondholders.
 Sunshine Mining is not a party to the filing, and therefore, no creditors or stockholders of Sunshine Mining Company are affected.
 Pursuant to the plan, each of the outstanding $1,000 Silver Indexed Bonds (which currently total $71.5 million principal amount) will be redeemed for $200 market value of Sunshine Mining common stock and a new Silver Indexed Bond with a face value of $800. The new bond will have a coupon of 8 percent, and principal and interest will be payable in shares of Sunshine Mining Company common stock or cash.
 Sunshine and Sunshine Precious Metals expect silver prices to begin to react positively to recent supply and demand trends for the precious metal. According to G. Michael Boswell, chairman of the board, president and chief executive officer, "The deficits recorded in 1990 and 1991 in the silver supply/demand balance are the first the industry has seen since 1979, when increases in silver prices to as high as $50 per ounce caused massive distortions in the silver supply and demand cycle. We believe the cycle has now begun to reverse itself and a significant price increase for silver should result. The last time a comparable situation arose, in 1971, silver prices tripled in three years."
 -0- 3/9/92
 /CONTACT: William W. Davis of Sunshine Mining, 800-542-6161/
 (SSC) CO: Sunshine Mining Company ST: Texas IN: MNG SU:


GK -- NY027 -- 6298 03/09/92 10:18 EST
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Publication:PR Newswire
Date:Mar 9, 1992
Words:498
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