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ANGELES MORTGAGE INVESTMENT TRUST ANNOUNCES FISCAL 1992 EARNINGS AND STATUS OF RESTRUCTURING DISCUSSIONS

 LOS ANGELES, May 5 /PRNewswire/ -- Angeles Mortgage Investment Trust (AMEX: ANM) announced today that it had a net operating loss of $28,303,000, or $8.64 per Class A share (on a fully diluted basis) for fiscal 1992, after giving effect to the establishment of a $35,000,000 reserve for loan losses relating to the Trust's approximately $73,600,000 of mortgage loans (as of Dec. 31, 1992) and the line of credit the Trust has extended to Angeles Corp. (approximately $9,300,000 as of Dec. 31, 1992). During the year ended Dec. 31, 1991, the Trust has net income of $5,426,000, or $1.93 per share (fully diluted). The Trust reported that the book value per fully diluted share of Class A Common Stock was $6.15 as of Dec. 31, 1992, as compared to $16.88 as of Dec. 31, 1991.
 As previously reported, debt service was curtailed on a substantial portion of the Trust's loan portfolio during February 1993, and the Trust announced that debt service has not yet been resumed with respect to a significant number of these loans. A number of the Trust loans are junior to other debt secured by the relevant partnership-borrower's real estate, and the secured senior lenders may foreclose upon their respective security interests. As a result of the curtailment of debt service on the Trust's loan portfolio, a valuation assessment of the underlying real estate and the Trust's limited liquidity, which limits the Trust's ability to preserve its junior security interest, the Trust determined that it was appropriate to record a $35,000,000 loan loss reserve in the fourth quarter of 1992.
 As previously announced, as a result of the failure of the Trust's borrowers to service their debt obligations to the Trust and Angeles Corp.'s failure to perform under its guaranty and line of credit obligations, the Trust is unable to determine or predict when, or if, monthly dividends can resume. Ronald J. Consiglio also noted that Angeles' ability to meet its guaranty obligations may be adversely impacted by Angeles' May 3, 1993, filing for bankruptcy protection under Chapter 11 of the Bankruptcy Code.
 As previously announced, the Trust has formed a committee, consisting solely of trustees who are not affiliated with Angeles Corp., with the authority to make all decisions with respect to the Trust's dealings with Angeles or any of its affiliates and to proceed with a prospective restructuring of the Trust's assets and liabilities. (The Trust announced that Les Lederer had resigned from the Board of Trustees prior to the formation of the Independent Committee.) In conjunction with the earnings announcement, Consiglio, speaking on behalf of the Independent Trustees, provided a status report with respect to the Trust's restructuring discussions.
 Consiglio noted that the Trust's borrowings under its line of credit with a financial institution, totaling approximately $18 million after a recent $2 million paydown, exceeds the allowable borrowing base and reminded shareholders that this line of credit expires on May 17, 1993. While Consiglio stated that the Trust does not have sufficient liquidity to reduce the amount of the total borrowings to an amount within the allowable borrowing base, if called upon to do so, he also noted that the bank has agreed not to enforce its rights against the Trust so long as the Trust (i) continues to make all current interest payments due the bank, (ii) pays to the bank all principal payments it receives from the Trust's borrowers, unless the bank otherwise agrees, (iii) continues to live within an agreed upon cash flow budget, and (iv) provides the bank with weekly updates of the status of its financial condition and restructuring discussions. Consiglio also noted that, while this standstill arrangement did not extend the term of the loan and the bank has made no formal commitment to the Trust, the bank has expressed a willingness to extend the line of credit beyond its scheduled expiration date if the bank remains satisfied with the Trust's efforts to bring the Trust's total borrowings within the allowable borrowing base.
 Consiglio also reported that the Trust, working together with its financial advisors, have held restructuring discussions with representatives of Insignia Financial Group ("Insignia"), the holder of the general partner interests for
the majority of the Trust's partnership/borrowers. Consiglio noted that "while no definitive agreements have been reached with respect to the restructuring proposals, these discussions have been constructive, and the Trust is hopeful that it will be able to reach a satisfactory conclusion to these discussions within the next two to three weeks, subject to subsequent completion of the necessary documentation and approval by the bank." To facilitate the restructuring discussions, Consiglio noted that the Trust is expected to agree not to enforce its rights against the partnership/borrowers affiliated with Insignia without giving these borrowers 10 days prior notice. Consiglio also noted that the information that has been analyzed during the course of these restructuring discussions has been fully taken into account for purposes of establishing the loan loss reserves.
 Consiglio also noted that during fiscal 1992 and the first month of fiscal 1993, the Trust accepted advances from certain of the partnerships, most of which are now controlled by affiliates of Insignia and that these advances totalled approximately $7,600,000. Consiglio noted that, although the Trust would not be able to repay the advances upon demand, based upon ongoing negotiations, these partnerships are expected to agree not to enforce whatever rights they possess against the trust without giving the Trust at least 10 days prior notice.
 Consiglio also reported that Paine Webber made a demand upon the Trust in April 1993 with respect to the Trust's aggregate $1 million guaranty of certain obligations of Angeles Housing Concepts Inc., Angeles' congregate care facility company, and that the Trust had not yet responded to that demand. Consiglio also noted that Joseph Cattivera and William Elliott tendered their resignations from the board effective April 8, 1993 and April 27, 1993, respectively.
 As a result of the uncertainties described above, the Trust announced that it expects that the independent auditor's report for the year ended Dec. 31, 1992 will contain an emphasis paragraph that is expected to express concerns with respect to the Trust's ability to continue as a going concern. The audit examination is still in process.
 In closing, Consiglio stated that "we have made a significant amount of progress with respect to our efforts to restructure the Trust's assets and liabilities, and more work remains to be done. We want to assure the Trust's shareholders that we are doing everything possible to protect their interests, and we would like to ask each of the Trust's shareholders to continue to be patient as these efforts proceed."
 -0- 5/5/93
 /CONTACT: Ron Consiglio, 310-247-0975, for Angeles Mortgage Investment Trust/
 (ANM)


CO: Angeles Mortgage Investment Trust ST: California IN: FIN SU: ERN RCN

JL-LS -- LA036 -- 5053 05/05/93 16:59 EDT
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Date:May 5, 1993
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