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CARSON PIRIE SCOTT FILES MOTION WITH BANKRUPTCY COURT FOR ADDITIONAL TIME TO ACCEPT OR REJECT LEASES

 CARSON PIRIE SCOTT FILES MOTION WITH BANKRUPTCY COURT
 FOR ADDITIONAL TIME TO ACCEPT OR REJECT LEASES
 /EDITORS: Mellon/McMahan Real Estate Advisors, Inc., a wholly-owned subsidiary of Mellon Bank, N.A., acts as the investment advisor to Mellon Participating Mortgage Trust. The trust's assets are not assets of Mellon Bank Corporation (NYSE: MEL) and the trust's financial results are not included in the financial results of Mellon Bank Corporation./
 SAN FRANCISCO, Sept. 23 /PRNewswire/ -- Mellon Participating Mortgage Trust, Commercial Properties Series 85/10 (NASDAQ: MPMTS), today announced that on Sept. 21, Carson Pirie Scott filed a motion with the Bankruptcy Court to extend through Feb. 15, 1993, the period of time allowed to formally accept or reject their existing non-residential lease obligations. A hearing on the motion is scheduled for Oct. 15, 1992.
 The trust has a $20 million investment in a $68 million participating first mortgage loan secured by six department stores located in the greater Chicago area leased to Carson Pirie Scott (CPS). CPS along with its parent company (P.A. Bergner & Co.), filed for protection in August 1991 under Chapter 11 of the U.S. Bankruptcy Code. The trust's borrower is an independent partnership which is not affiliated with either CPS or P.A. Bergner & Co. The trust's borrower leases the six department stores to CPS.
 Although CPS continues to remit the full amount of the monthly lease payment to the trust's borrower and the trust's borrower has paid to the trust all regularly scheduled interest payments through Sept. 1, 1992, the mortgage remains in default for the non-payment of late charges and past due property taxes.
 The trust cannot fully assess the financial consequences of the CPS bankruptcy until such time as CPS finally determines whether or not they intend to accept, reject or attempt to re-negotiate their lease obligations. Accordingly, no loss provision has been provided for in the trust's financial statements.
 As of Aug. 31, 1992, the CPS investment represented approximately 31 percent of the trust's net assets or $2.59 cents per share. In addition, this investment contributed approximately 33 cents per share in 1991 taxable income.
 The trust is pursuing all of its legal rights, including protection of its security interest in the six department stores and any guarantees of performance by third parties. The costs associated with this process is being allocated between the trust and the other participants in the $68 million CPS first mortgage loan.
 Mellon Participating Mortgage Trust is a fully invested finite-life real estate investment trust. The trust intends to make no additional real estate investments, but will distribute to shareholders the net proceeds of each liquidating transaction, subject to any reserve requirements.
 -0- 9/23/92
 /CONTACT: Brian Zywiciel of Mellon/McMahan Real Estate Advisors, Inc., 415-433-7770/
 (MEL MPMT) CO: Mellon/McMahan Real Estate Advisors, Inc.; Mellon Bank, N.A. ST: Illinois IN: FIN SU:


CD -- PG012 -- 2797 09/23/92 16:24 EDT
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Publication:PR Newswire
Date:Sep 23, 1992
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