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CALIFORNIA BEACH RESTAURANTS ANNOUNCES COMPLETION OF AGREEMENT WITH ITS BANK

 CALIFORNIA BEACH RESTAURANTS ANNOUNCES
 COMPLETION OF AGREEMENT WITH ITS BANK
 LOS ANGELES, June 4 /PRNewswire/ -- California Beach Restaurants Inc. (NASDAQ: CALB) (the "company") announced today that its wholly owned subsidiary, Sea View Restaurants Inc. ("Sea View") has reached a forbearance and preliminary restructure agreement with its bank, Bank of America (formerly Security Pacific National Bank). The forbearance agreement is effective immediately. The restructure agreement, which requires that the company meet certain conditions and is subject to final documentation, is expected to become effective no later than Oct. 1, 1992.
 The restructure agreement requires that the company raise at least $1 million of additional equity capital as well as restructure Sea View's $5 million subordinated contingent promissory note. The company is negotiating with a group of its shareholders and other investors to obtain the equity capital required to satisfy this condition of the restructure agreement.
 The company also announced that Sea View has reached agreement in principle, subject to the execution of a definitive agreement, with The Restaurant Enterprises Group Inc. ("REGI"), holder of the $5 million contingent promissory note, which provides, among other things, that REGI will exchange the existing note for common stock representing 10 percent of the ownership of the restructured company and a $1.9 million subordinated contingent promissory note.
 California Beach Restaurants Inc. owns and operates Gladstone's 4 Fish in Pacific Palisades, Calif., and RJ's the Rib Joint in Beverly Hills, Calif., and has licensed the Gladstone's name to MCA Development for a restaurant owned by MCA at its CityWalk project in Universal City, Calif.
 -0- 6/4/92
 /CONTACT: Joan Luther of Joan Luther and Associates, 310-273-4936, for California Beach Restaurants/
 (CALB) CO: California Beach Restaurants Inc. ST: California IN: LEI SU:


JL-EH -- LA011 -- 6897 06/04/92 09:02 EDT
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Publication:PR Newswire
Date:Jun 4, 1992
Words:296
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