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COURT STAYS ORDER AGAINST DELTONA

 COURT STAYS ORDER AGAINST DELTONA
 MIAMI, Jan. 24 /PRNewswire/ -- The Deltona Corporation (NYSE: DLT)


announced today that the Circuit Court in Marion County, Fla., granted the injunction requested by the Division of Florida Land Sales, Condominiums and Mobile Homes of the Florida Department of Business Regulation in its suit filed against the Miami-based developer on Oct. 30, 1991, but delayed the effectiveness of its order. After 60 days, the order would go into effect unless the Division and Deltona agree to a further extension.
 The suit alleged that Deltona has been in breach, since April 1991 of an agreement with the Division to fund an improvement escrow account to assure the completion of improvements for the company's "Three Seasons" communities. The order would require the company to refrain from using monies collected from its Three Seasons purchasers for purposes other than funding an alleged escrow deficiency, which is currently estimated to be approximately $3 million, and to refrain from selling property in its Three Seasons communities.
 The Court agreed, at the parties' request, to delay the effectiveness of the order, enabling Deltona to continue its sales program, complete the second phase of its previously announced bank debt restructuring and secure the funding of alternative financing. By securing the alternative financing, Deltona would be able to meet the escrow requirements of its agreement with the Division, fulfill certain customer obligations for improvement work in its Three Seasons communities, and be in a position to stimulate the rebuilding of its retail land sales business. While much remains to be accomplished, the company was encouraged by the court's action and the apparent willingness of all of the parties to work towards a resolution of the lawsuit that would benefit the company and its customers.
 Deltona is the developer of nine planned communities, extending from the Florida Panhandle through the state's Gulf Coast and encompassing approximately 100,000 acres.
 -0- 1/24/92
 /CONTACT: Michelle R. Garbis of Deltona Corporation, 305-854-1111/
 (DLT) CO: Deltona Corporation ST: Florida IN: CST SU:


SS-AW -- FL005 -- 3226 01/24/92 11:03 EST
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Publication:PR Newswire
Date:Jan 24, 1992
Words:345
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