ANGELES PARTICIPATING MORTGAGE TRUST ENTERS INTO A MARKETING AGREEMENT WITH CREDITOR'S COMMITTEE OF ANGELES CORP.
LOS ANGELES, Sept. 27 /PRNewswire/ -- Angeles Participating Mortgage Trust (AMEX: APT) has entered into a Joint Marketing Agreement with the official Unsecured Creditors' Committee of Angeles Corp. The Joint Marketing Agreement, to which Angeles is not a party, sets forth procedures for the Committee and APT to solicit bids for the purchase of Angeles' interest in Factory Merchant Malls Inc. ("FMM") along with the mortgages held by APT. Pursuant to the Joint Marketing Agreement, the Committee and APT have agreed that the net proceeds of the sale shall be divided as follows: (i) Of the first $40 million in net proceeds: $26 million to APT and $14 million to the Angeles Corp. estate; (ii) Of the next $5 million in net proceeds: 60 percent to APT and 40 percent to Angeles Corp. estate; and (III) Over $45 million in net proceeds: 50 percent to APT and 50 percent to Angeles Corp. estate. The Joint Marketing Agreement contemplates mutual releases of claims by APT and Angeles Corp. upon the closing of a joint sale with net proceeds of at least $40 million. On Oct. 12, 1993, the bankruptcy court supervising the Angeles reorganization will consider competing bids for FMM including any offer presented pursuant to the Joint Marketing Agreement. The Joint Marketing Agreement will terminate (i) On Nov. 2, 1993, unless the bankruptcy court previously approves a sale resulting in at least $40 million of net proceeds; or (ii) On Dec. 31, 1993 if a sale is not closed. There can be no assurances that the Joint Marketing Agreement will result in the sale of the mortgages. The independent trustees of APT have evaluated the relative net proceeds that would be received under the Joint Marketing Agreement and under a foreclosure action by APT. The trustees, as advised by their independent financial advisors, believe there is significantly more value in the joint sale of FMM and APT's mortgage loans than the value that would be received through a protracted bankruptcy preceding that would almost certainly be triggered by an attempted foreclosure. However, the trust has received a court date of late October 1993 for foreclosure actions in the event the Joint Marketing Agreement is not successful in obtaining acceptable bids. APT is traded on the American Stock Exchange. The Trust reported in its June 30, 1993 Form 10Q as filed with the Securities and Exchange Commission, assets of $37.4 million net of $1 million in liabilities. Assets consisted of $14 million in cash and $24.4 million of mortgage notes receivable from subsidiaries of FMM. As previously reported, if APT sells its mortgages for cash, it intends to liquidate the trust. -0- 9/27/93 /CONTACT: Ann Merguerian, 310-772-0147/ (APT)
CO: Angeles Participating Mortgage Trust ST: California IN: FIN SU: JVN
EH -- LA018 -- 5939 09/27/93 12:48 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Sep 27, 1993|
|Previous Article:||INTRODUCING TOBY TERRIER TV'S BARKING, WAGGING, TALKING INTERACTIVE VIDEO STAR|
|Next Article:||CARTER HAWLEY HALE NAMES REMBY V.P. STORE OPERATIONS|