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MCORP MAKES ANNOUNCEMENT

 DALLAS, Jan. 11 /PRNewswire/ -- MCorp announced today that the Fifth Circuit Court of Appeals had ordered non-binding mediation among the parties with respect to the appeal of the confirmation of the joint Chapter 11 plans of reorganization of MCorp and its two subsidiaries, MCorp Financial, Inc. and MCorp Management. The Fifth Circuit ordered that the mediation take place over the next 60 days before Bankruptcy Judge Steven A. Felsenthal, Northern District of Texas.
 The plans, which had been proposed by MCorp and its subsidiaries, certain senior bondholders and the Unsecured Creditors Committee for the debtors, were confirmed on Oct. 1, 1993 by order of the United States District Court for the Southern District of Texas, which was sitting as a bankruptcy court. Upon the motion and appeal by certain creditors, consummation of the plans was stayed pending the appeal. Oral argument on the appeal was held before the Fifth Circuit on Jan. 3, 1994. No decision on the appeal will be forthcoming until after the non-binding mediation is completed.
 If the parties are not able to settle these Chapter 11 cases through mediation, MCorp is hopeful that the appeal ultimately will be denied, in either case clearing the way for consummation of the plans. The company cannot state with certainty in what time frame this will occur or whether a successful mediation will require a resolicitation of creditors and holders of equity interests.
 -0- 1/11/94
 /CONTACT: Michael D. Magill of MCorp, 214-939-5884/


CO: MCorp ST: Texas IN: FIN SU:

LG -- NY016 -- 0870 01/11/94 09:24 EST
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Publication:PR Newswire
Date:Jan 11, 1994
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