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CHAMPS FILES LIQUIDATION PLAN WITH SEC

    ROCKVILLE, Md., Oct. 27 /PRNewswire/ -- Capital Housing and Mortgage Partners, Inc. (CHAMPS) (AMEX: CAP), a real estate investment trust (REIT), has filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) in connection with a plan approved by the board of directors to completely liquidate CHAMPS' assets, distribute the liquidation proceeds to shareholders and dissolve the corporation.
    If shareholders approve the plan at the special meeting of shareholders scheduled to be held on Dec. 22, 1993, CHAMPS is expected to sell or otherwise dispose of its mortgage investments by the end of 1993.
    The board contemplates making a single liquidating distribution to shareholders in January 1994.
    The board approved the plan of liquidation and dissolution in light of the reduced size of the company's portfolio.  There were four involuntary mortgage dispositions during 1992; and two more involuntary mortgage dispositions are expected during the last quarter of 1993.
    Many of the corporation's expenses are relatively fixed and therefore have not declined at the same rate as the corporation's portfolio.
    The portfolio at Sept. 30, 1993, consisted of eight federally insured mortgages (including two mortgages held for disposition), two investments in limited partnerships, cash, and other net assets.
    Management estimates that, as of Sept. 30, 1993, the corporation's pro forma net asset value on a liquidation basis of accounting was approximately $30.4 million, or approximately $6.11 per share (net of liquidation costs).
    The estimate of the corporation's net asset value is based on the average of the quoted market prices of CHAMPS' mortgage investments obtained from two investment banking firms which trade government- insured mortgage loans and government-guaranteed mortgage securities as part of their day-to-day activities.  The two investments in limited partnerships have been valued at their Sept. 30, 1993, book values. Liquidation costs and disposition fees payable to the CHAMPS' adviser have been estimated at approximately $680,000.  All other assets (except the deferred asset costs which have been adjusted to zero) and liabilities are based on their book values at Sept. 30, 1993.
    There is no assurance that the liquidating distribution will equal the amount estimated in the proxy statement or this news release.
    -0-             10/27/93
    CONTACT:  James T. Pastore, 301-231-0323, or Susan Railey, 301-468-3120, both for CHAMPS
    (CAP) CO:  CAPITAL HOUSING AND MORTGAGE PARTNERS, INC. IN:  FIN ST:  MD


-- DC002 -- X385 10/27/93
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Publication:PR Newswire
Date:Oct 27, 1993
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