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CF INCOME PARTNERS L.P. ANNOUNCES AGREEMENT IN PRINCIPLE

To Settle Litigation and Obtain Debt Concessions from Principal Lender and Determination of Possible Liquidating Distribution to Unit Holders
 LOS ANGELES, Sept. 27 /PRNewswire/ -- CF Income Partners L.P. (NYSE: CFI), a Los Angeles-based master limited partnership, announced today that an agreement in principle had been reached to settle all outstanding class action and derivative lawsuits affecting the partnership, subject to court approval at hearings to be held after notice to class members and unit holders. In addition, the partnership announced that an agreement in principle had been reached with California Federal Bank, its principal lender, under which the bank agreed, subject to completion of the settlement of the outstanding litigation, to a concession in the repayment of the partnership's outstanding debt to the bank. As part of the concession, the bank also agreed to acquire the partnership's resale portfolio of real estate investments subject to existing indebtedness of approximately $2.3 million on these properties, with the partnership receiving a credit against the bank debt equal to its aggregate net book equity in these properties of approximately $6.2 million. The partnership also stated that it was continuing negotiations with its other creditors.
 Dennis A. Sondker, the president of CF Management Corp., the partnership's general partner, said, "I am pleased that these proposed settlements will not require any payments by the partnership. Provided that the proposed sale of the investment portfolio to the American Continental Properties Group for $182.5 million, the dissolution of the partnership and related matters are approved by our unit holders, California Federal Bank will cancel in excess of $35 million of the partnership's outstanding debt as a result of these settlements. Most importantly to our unit holders, if all of the proposed settlements and agreements announced today and previously are approved and completed, the partnership will make an approximate $13.2 million, or $1.00 per unit, distribution to its unit holders upon the dissolution of the partnership."
 Sondker also observed that "no definitive agreements have been signed to effect any of the described settlements or other transactions and the settlements are subject to court approval. Completion of the transactions is also subject to the successful conclusion of the American Continental Properties Group's due diligence, receipt of a fairness opinion from an independent financial advisor, finalization of documentation with California Federal Bank and unit holder approval at a special meeting which will be held later this year."
 CF Income Partners L.P. is a publicly traded master limited partnership which has invested in income producing multifamily residential, commercial and industrial properties.
 -0- 9/27/93
 /CONTACT: Barbara J. Pape, 213-930-6246/
 (CFI)


CO: C.F. Income Partners L.P., California Federal Bank ST: California IN: FIN SU:

NY-MF -- LA009 -- 5786 09/27/93 08:43 EDT
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Publication:PR Newswire
Date:Sep 27, 1993
Words:461
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