SpectraVision proposes debt restructuring plan; Company files 8K detailing terms of restructuring proposal

Business Wire, April 28, 1995

DALLAS--(BUSINESS WIRE)--April 28, 1995--SpectraVision Inc. said that it met with its bondholders today to present the company's proposed financial restructuring plan.

SpectraVision said that under its restructuring proposal, the company's outstanding debt and debt service requirements would be substantially reduced.

The company has filed a form 8K with the Securities and Exchange Commission that includes terms of the proposed plan.

Terms of the proposed restructuring plan include:

o Accounts payable: 100% assumed by the company

o Bank debt: 100% assumed or refinanced by the company

o $18.1 million capitalized lease obligations (other than

Electronic Data Systems Corp.): 100% assumed by the company

o $24.0 million lease obligations (EDS): 100% assumed by the

company, with extended payment terms

o $177.2(1) million Senior Discount Notes due 2001: $75

million New Senior Discount Notes due 2003 and 50% of the

primary common stock

o $307.2(1) million Senior Subordinated Reset Notes due 2002:

35% of the primary common stock

o $33.9 million EDS Unsecured Claim: 15.0% of the primary

common stock(2)

o CVRs: warrants to purchase 1.0% of the fully-diluted common

stock(3)

o Common Stock: warrants to purchase 3.5% (combined total for

both A & B classes) of the fully-diluted common stock(3)

There can be no assurances that any plan will be agreed to or implemented.

SpectraVision Inc. is the largest supplier of in-room, pay-per-view entertainment and information services to the worldwide lodging industry. Through its STARPATH(TM) technology, it is the only company in the lodging industry delivering compressed digital video and digital video-on-demand to hotels in North America. Founded in 1971, the company markets its products and services in the U.S., Canada, Mexico, the Caribbean, Australia and the Pacific Rim.

(1) Estimated accreted amount at March 31, 1995. (2) In conjunction with and as partial consideration for providing a capital lease facility to deploy STARPATH(TM) technology. (3) Warrants assumed to be struck at market.

CONTACT: SpectraVision Inc.

Investor Contact: Janice Schroer, 214/301-9016

or

Media Contact: Robert Mead, 212/484-6701