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AMERICAN REALTY TRUST ANNOUNCES SALE OF CONTINENTAL HOTEL AND CASINO

AMERICAN REALTY TRUST ANNOUNCES SALE OF CONTINENTAL HOTEL AND CASINO
 DALLAS, June 22 /PRNewswire/ -- American Realty Trust, Inc. (NYSE: ARB) today announced the sale of the Continental Hotel and Casino in Las Vegas for $22.9 million.
 The purchaser, Hotel Continental Inc., is the property's current operator. It paid $22.9 million for the hotel including $100,000 cash, the assumption of $250,000 of American Realty's obligations, and notes for $500,000 and $22 million wrap mortgage secured by the property. Hotel Continental Inc. subordinated its disputed $5.3 million mortgage on the property to the two purchase money mortgages given to American Realty. The $22 million note bears interest at 11 percent per annum and matures in 1995. The first lienholder, Primerit Bank FSB, reinstated its first mortgage and extended it to coincide
with the three-year term of the American Realty wrap mortgage. When the wrap mortgage matures,


American Realty expects the property will be refinanced and the wrap mortgage paid off.
 "We have been in ongoing litigation and bankruptcy proceedings related to the property since February 1990," said a spokesperson for American Realty. "This sale and restructuring of the debt allows us to preserve our equity in the property, end the financial drain that the extensive litigation has caused, and restore this asset to an earning status."
 American Realty foreclosed on the Continental Hotel in August of 1990. As a result of the sale, the company expects to recover its entire investment in this property.
 American Realty Trust, Inc. is a combination mortgage and equity real estate investment company which operates nationwide.
 -0- 6/22/92
 /CONTACT: Jean Krone Bono of American Realty Trust, 214-692-4800/
 (ARB) CO: American Realty Trust Inc. ST: Texas IN: CNO SU: TNM


SM -- NY065 -- 2514 06/22/92 15:37 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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