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ATLANTIC GULF COMMUNITIES CORPORATION EMERGES FROM GDC BANKRUPTCY

 ATLANTIC GULF COMMUNITIES CORPORATION EMERGES FROM GDC BANKRUPTCY
 MIAMI, March 31 /PRNewswire/ -- Atlantic Gulf Communities Corporation, the successor to General Development Corporation, emerged from bankruptcy today as a reorganized company. The primary assets of Atlantic Gulf and its subsidiaries include approximately 90,000 acres of land in Florida and Tennessee, water and sewer utility systems in many of its Florida communities, and a portfolio of receivables under prior homesite sales contracts and home mortgages.
 Atlantic Gulf Communities also announced today the closing, with Manufacturers Hanover Trust Company as agent for a group of participating banks, of a financing package including a $20 million working capital facility. This $20 million facility will provide the necessary capital to fund Atlantic Gulf's business operations going forward. The financial package also included a three-year, $50 million term loan to fund administrative claims in the bankruptcy and to refinance the GDC debtor-in-possession loans.
 According to Atlantic gulf president and Chief Executive Officer J. Larry Rutherford, "Atlantic Gulf Communities is indeed a new company, with a new board of directors, new shareholders, new senior management, and a completely new business plan. We are ready to move forward as a traditional community developer, focusing on the creation of master-planned residential communities in Florida and Tennessee."
 GDC filed for protection from creditors under Chapter 11 on April 6, 1990. In December 1991, GDC's creditors approved the plan of reorganization, proposed jointly by GDC and the creditors' committee. The plan was confirmed by Bankruptcy Judge A. Jay Cristol on March 27, 1992. Under the terms of the plan of reorganization, which went into effect today, most of GDC's general unsecured creditors will receive distributions of stock and notes to be issued by the reorganized company. The new securities will be issued once Atlantic Gulf Communities receives the necessary SEC clearances, which are expected to be obtained within 60 days.
 Atlantic Gulf Communities also announced GDC's financial results for 1990 and 1991. Revenues were $148.1 million for 1990 and $80.5 million for 1991. Net losses were $1,024.5 million for 1990 and $49.5 million for 1991.
 "These results reflect the consequences of GDC's bankruptcy, and not the reorganized company's financial position," explained CEO Rutherford. Atlantic Gulf expects to file with the SEC by April 13, 1992, a report on Form 8-K containing information on the reorganized company's assets and liabilities, reflecting accounting for the reorganization.
 Atlantic Gulf Communities Corporation is a Miami-based community developer with nine residential communities throughout Florida and one in the Cumberland Mountains of Tennessee.
 -0- 3/31/92
 /CONTACT: Nancy Fritts of General Development Corporation, 305-859-4711/ CO: General Development Corporation ST: Florida IN: CST SU:


JB-SS -- FL017 -- 3635 03/31/92 17:46 EST
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Publication:PR Newswire
Date:Mar 31, 1992
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