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CALPROP ANNOUNCES COMPLETION OF FORECLOSURE PROCEEDINGS

 LOS ANGELES, May 28 /PRNewswire/ -- Calprop Corp. (AMEX: CPP), a California home builder, announced today that on May 27, Bank of America (NYSE: BAC) completed the foreclosures on two properties owned by the company. The foreclosures were initially announced in July, 1992. The completion of the foreclosures will have no effect on current earnings or the company's financial position as they were fully reflected in the financial results for the year ended Dec. 31, 1992.
 "As we reported previously, in July Bank of America informed the company that it would not renew $11.7 million in loans. Although Calprop had missed no payments, the value of the properties securing the loan had fallen below the bank's loan to value requirements," said Victor Zaccaglin, Calprop's chairman and chief executive officer.
 The debt was restructured as follows: the bank foreclosed on two projects with a combined value of $9.0 million, forgave $2.7 million in debt, and returned two projects to Calprop, 31 mapped lots in Mockingbird Canyon, Riverside and 517 mapped lots in Victorville. A fifth, single-home project, was sold during the negotiations. The settlement with Bank of America will be completed in 90 days.
 "The restructuring significantly improved our debt to equity position. Going forward, we intend to safeguard our financial position and focus only on those projects with the greatest current potential. This should enable Calprop to move forward when the residential real estate market improves in California," Zaccaglin concluded.
 Calprop builds quality homes in some of the state's most desirable communities in both Northern and Southern California. The company's common stock is traded on the American Stock Exchange under the symbol CPP.
 -0- 5/28/93
 /CONTACT: Stuart Eigler of Calprop, 310-306-4314; or Lise Needham, 415-986-1591, or Nick Farina, 312-266-7800, both of FRB, for Calprop/
 (CPP BAC)


CO: Calprop Corp.; Bank of America ST: California IN: CST SU:

SG -- SF011 -- 3579 05/28/93 18:00 EDT
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Publication:PR Newswire
Date:May 28, 1993
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