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SOUTHMARK WINS SUMMARY JUDGMENT IN LITIGATION OVER TWO LOANS

 SOUTHMARK WINS SUMMARY JUDGMENT IN LITIGATION OVER TWO LOANS
 DALLAS, April 10 /PRNewswire/ -- Southmark Corporation (OTC) reported that a Dallas bankruptcy court yesterday granted the company's motion for summary judgment in litigation with the Resolution Trust Corporation ("RTC") as receiver for Lincoln Savings & Loan. The litigation involved competing claims by Southmark and the RTC for $15.2 million of cash currently held in escrow arising from the repayment of two notes held by Southmark. At the same time the Dallas court denied the RTC's motion for summary judgment.
 Southmark challenged the validity of Lincoln's claims under purported loan participation agreements in the two notes in the amount of $15.2 million. The company argued that the purported participation agreements were essentially unsecured financing arrangements and not true participations.
 Southmark said that it expects the RTC to appeal the bankruptcy court's decision.
 Southmark Corporation, headquartered in Dallas, is engaged in the liquidation of assets in accordance with its court-approved Plan of Reorganization.
 -0- 4/10/92
 /CONTACT: Charles B. Brewer, executive vice president of Southmark, 214-406-6775, or Susan A. Seiter of Susan Seiter Associates, 817-488-3142, for Southmark/ CO: Southmark Corporation ST: Texas IN: SU:


SH -- NY022 -- 7189 04/10/92 11:22 EDT
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Publication:PR Newswire
Date:Apr 10, 1992
Words:202
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