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ANGELES MORTGAGE INVESTMENT TRUST SUSPENDS DIVIDEND

 LOS ANGELES, Feb. 19 /PRNewswire/ -- Angeles Mortgage Investment Trust (AMEX: ANM) announced today that it was facing liquidity problems that were being caused by the inability of its borrowers to fully service outstanding debt obligations and that its normal monthly dividend payable in March has been suspended. ANM is currently unable to determine or predict when monthly dividends can resume. ANM stated that loans with an aggregate principal balance of approximately $35 million, representing approximately 40 percent of ANM's loan portfolio, are currently not being serviced by the respective borrowers. ANM attributed this to the continuation of the depressed real estate market and noted that it was evaluating whether any loan loss reserves should be established.
 Angeles Corp. (AMEX: ANG), the parent corporation of ANM's advisor and holder of approximately 18 percent of ANM's Class A shares, has provided a partial guarantee with respect to ANM's dividend payments and the repayment of ANM's outstanding loans. However, Angeles has informed ANM that, as a result of its own liquidity problems, Angeles is not presently able to fulfill its guarantee obligations to ANM or to service Angeles' separate $10 million credit facility from ANM on a current basis. Angeles attributed its liquidity problems to its inability to complete sales or refinancings of real estate assets and to fully realize asset values in a continuing sluggish and depressed market as well as the failure of real estate partnerships formerly affiliated with Angeles to service fully, if at all, their debt obligations to Angeles.
 The parent corporation of the general partners of many of the real estate partnerships that are ANM's borrowers just recently assumed management of such partnerships, having acquired from Angeles those general partners together with the Angeles property management business and all of the ANM Class B shares (holding 1/3 of ANM's voting power) in late 1992. Such partnerships have been experiencing liquidity problems during such depressed period, and for the year ended Dec. 31, 1992, Angeles provided approximately $3 million in working capital advances to these partnerships to cover negative cash flow of the related partnership's property and to some extent, to make debt service payments to ANM. The real estate partnerships not currently servicing ANM loans are all partnerships which have recently experienced the management change noted above.
 ANM, Angeles and the real estate partnerships that are ANM's borrowers have begun preliminary discussions with respect to a prospective restructuring of the obligations among the parties, and ANM has been asked to consider Angeles' request for a standstill agreement while these discussions are proceeding. Angeles has informed ANM that Angeles intends to initiate discussions with all of Angeles' other major debt holders with a view towards restructuring Angeles' other major debt obligations.
 -0- 2/19/93
 /CONTACT: Steve Leach, 310-284-3598, or Walter S. Losk, 800-421-4374, ext. 585, or 213-284-3585, both of Angeles Corp./
 (ANM ANG)


CO: Angeles Corp.; Angeles Mortgage Investment Trust ST: California IN: FIN SU:

EH-LS -- LA032 -- 8563 02/19/93 17:07 EST
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Publication:PR Newswire
Date:Feb 19, 1993
Words:497
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