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CALIFORNIA BEACH RESTAURANTS ANNOUNCES RECEIPT OF NOTICE OF LOAN AGREEMENT ACCELERATION

 CALIFORNIA BEACH RESTAURANTS ANNOUNCES RECEIPT OF NOTICE
 OF LOAN AGREEMENT ACCELERATION
 LOS ANGELES, April 24 /PRNewswire/ -- California Beach Restaurants Inc. ("the company") (NASDAQ: CALB) announced today that it received notice that its bank, Bank of America N.T. & S.A. ("B of A"), (formerly Security Pacific National Bank), was accelerating all amounts due under its loan agreement with the company's wholly owned subsidiary, Sea View Restaurants Inc. ("Sea View"). Sea View has not received notice of B of A's intention to proceed against the collateral which secures the loan, Sea View's assets and the Sea View capital stock owned by the company. The company has also received notice of acceleration from B of A pursuant to the company's guarantee of the Sea View loan.
 As described more fully in the company's report on Form 10-Q for the third quarter ended Jan. 31, 1992, the existing sources of funds of the company and Sea View are insufficient to repay the B of A loan in full. The company is continuing its efforts to complete a restructuring which would include raising additional cash in the form of equity and reaching an agreement with B of A to waive existing events of default, and to restructure the loan payment terms and covenants. If the company is unable to reach a satisfactory restructuring agreement or if the bank commences a proceeding against the loan's collateral, the company's board of directors will consider all of the alternatives available to the company, including seeking protection under the federal bankruptcy laws.
 -0- 4/24/92
 /CONTACT: Mark Segal, VP and CFO of California Beach Restaurants, 310-459-9676/
 (CALB) CO: California Beach Restaurants Inc. ST: California IN: LEI SU:


JL-KJ -- LA039 -- 2804 04/24/92 21:08 EDT
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Publication:PR Newswire
Date:Apr 24, 1992
Words:289
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