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CV REIT SHAREHOLDERS TOLD TERMS OF PROPOSED PEMBROKE PINES ACQUISITION

CV REIT SHAREHOLDERS TOLD TERMS OF PROPOSED PEMBROKE PINES ACQUISITION
 WEST PALM BEACH, Fla., May 22 /PRNewswire/ -- Shareholders of CV Reit, Inc. (NYSE: CVI), a real estate investment trust, today were told added information about the previously announced discussions to buy the Pembroke Pines adult condominium project in Broward County and certain other assets of Cenvill Development Corp.
 H. Irwin Levy, CV Reit's chairman, at the company's annual meeting, here, explained that the purchase proposal, subject to approval of the boards of directors of both companies, would require that Cenvill Development and certain of it subsidiaries file for reorganization under Chapter 11 of the Federal Bankruptcy Code and the proposed agreement be submitted for approval of the Bankruptcy Court. He noted that, if there are no objections to the proposal, the court could act on the proposal within 45 days of the filing.
 Levy explained that the proposal anticipates a newly organized subsidiary of CV Reit would acquire the assets for a purchased price expected to include a $2.75 million interest-bearing note guaranteed by CV Reit, payable over three years. The assets would be purchased subject to approximately $49 million of loans to CV Reit, approximately $8.3 million of bank indebtedness, and certain project liabilities. He said it is expected the terms of the CV Reit loans would be modified after the purchase is completed. Terms of all agreements between CV Reit and the new company will be negotiated by a committee to be established by the board of directors of CV Reit.
 Levy noted that he has been asked by the board of directors to become chief executive officer of the new company and he agreed, provided he is permitted to buy 25 percent of the common stock of that company on the same terms as CV Reit. In that case, at an appropriate time, he said he would resign from the CV Reit board.
 The new subsidiary is expected to be capitalized with preferred stock to be held by CV Reit and by common stock, 75 percent of which would be purchased and initially held by CV Reit and 25 percent of which would be bought by Levy. Upon satisfaction of certain regulatory requirements, CV Reit plans to distribute to its stockholders as a taxable dividend the common stock it would hold in the new company. This stock would become freely tradeable by unaffiliated stockholders.
 Levy stated that he anticipates that CV Reit will be required to discontinue the accrual of income from the interest generated by the loans due from the new company until it distributes the shares of that company to its shareholders.
 "As a result, the directors have determined that CV Reit will not declare a dividend for the second quarter of this year," Levy announced. "I can state that, assuming the transaction is concluded within a reasonable timeframe, a dividend of the shares of the new company would be expected to be distributed before or at about the same time as a third quarter dividend would ordinarily be paid. I think I can also state that if this matter is concluded and, depending on CV Reit's results of operations, it is anticipated that the company could resume declaring cash dividends in the fourth quarter."
 -0- 5/22/92
 /CONTACT: Alvin Wilensky of CV Reit, 407-640-3155/
 (CVI) CO: CV Reit, Inc.; Pembroke Pines ST: Florida IN: SU: TNM


KD-LR -- NY057 -- 3465 05/22/92 16:46 EDT
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Publication:PR Newswire
Date:May 22, 1992
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