APT TO SELL ITS MORTGAGE PORTFOLIO FOR $26 MILLION UNDER A MARKETING AGREEMENT WITH THE CREDITORS' COMMITTEE OF ANGELES CORP.
LOS ANGELES, Oct. 13 /PRNewswire/ -- Angeles Participating Mortgage Trust (AMEX: APT), under a Joint Marketing Agreement with the Official Unsecured Creditors' Committee of Angeles Corp., has agreed to sell the three mortgages held in its portfolio to New Plan Realty Trust, a NYSE REIT. As part of the same transaction, Angeles Corp. will sell its shares in Factory Merchant Malls Inc., which wholly owns the entities who are obligated under the APT mortgages, to New Plan Realty Trust. Pursuant to the Joint Marketing Agreement, net proceeds of the sale, upon closing which is expected within one month, are to be divided approximately $26 million to APT and $14 million to the Angeles Corp. estate. In addition, Angeles Corp. will sell the 1,275,000 Class B shares it owns to New Plan Realty Trust. Such Class B shares are entitled to a 1 percent equity interest and a 33.3 percent voting interest in APT. The Joint Marketing Agreement contemplates mutual releases of certain claims by APT and Angeles Corp. The independent trustees of APT have evaluated the relative net proceeds that will 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 to APT in the sale of FMM and APT's mortgage loans to a single purchaser than APT would have received through the protracted bankruptcy proceeding that would almost certainly have been triggered by an attempted foreclosure. 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, upon receipt of its proceeds, APT intends to liquidate the trust. -0- 10/13/93 /CONTACT: Ann Merguerian, 310-772-0147/ (APT)
CO: Angeles Participating Mortgage Trust; Angeles Corp. ST: California IN: FIN SU:
LS-EH -- LA039 -- 1876 10/13/93 17:00 EDT
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|Date:||Oct 13, 1993|
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