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BFC FINANCIAL CORPORATION ANNOUNCES JURY VERDICT

 CORAL GABLES, Fla., Dec. 18 /PRNewswire/ -- BFC Financial Corporation announced today that a jury in Palm Beach has found that the company's issuance in 1989 of debentures in exchange for the assets and liabilities of three affiliated public limited partnerships was unfair to investors. The jury determined that the company, the affiliated managing general partners, and the company's president, Alan Levan, did not, as stated in the exchange prospectus, believe that the terms of the exchange were fair to the limited partners. Based on that determination, the jury found that those limited partners who did not vote in favor of the transaction are entitled to receive $7.8 million, the amount which they claimed they would have received if the partnerships had been liquidated, rather than the approximately $16 million of subordinated debentures which were issued to them as a consequence of the exchange.
 Ironically, the company will record a substantial gain from the reduction in its debt resulting from this verdict, but it nonetheless believes that the verdict was not supported by the evidence at trial. If the verdict is not vacated, BFC will record a pre-tax gain of approximately $6 million from the extinguishment of the $16 million of outstanding debt.
 Alan Levan, president of the managing general partners and the company, said, "Although the net effect of the verdict is to reduce the company's liability to the plaintiffs I am disappointed with the outcome. Not only did I believe that the exchange was fair when it was proposed and approved by a majority of the limited partners, but subsequent events since the exchange have clearly proven it to be so. The simple fact is that the jury's verdict demonstrates that BFC had agreed to pay far more than the partnership assets were worth."
 BFC is also defending other claims brought against it in connection with the 1989 exchanges and with its issuance of approximately $16 million of debentures in its 1991 acquisition of the assets and liabilities of three other affiliated partnerships. Those cases remain pending. Levan said that the company will be exploring avenues to revisit both of these transactions and that "If these investors really want less money but have it now, I would like to accommodate them."
 -0- 12/18/92
 /CONTACT: Glen Gilbert of BFC Financial Corp., 305-665-8100/


CO: BFC Financial Corporation ST: Florida IN: FIN SU:

JJ-JB -- FL014 -- 8347 12/18/92 15:38 EST
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Publication:PR Newswire
Date:Dec 18, 1992
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