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DEL-VAL FINANCIAL ANNOUNCES SETTLEMENT

 BOGOTA, N.J., Nov. 20 ~PRNewswire~ -- Del-Val Financial Corporation (NYSE: DVL), a real estate investment trust, today announced that the settlement of the limited partnership class action entitled In Re Kenbee Limited Partnerships Litigation was approved by the United States District Court for the District of New Jersey.
 Under the approved settlement, Del-Val's mortgage loan portfolio will be reaffirmed on a restructured basis. In addition, the limited partners as a class will share in certain future cash flow and profits of Del-Val. In connection with the settlement, six creditors who held mortgages as collateral for Del-Val's obligations have agreed to restructure their loans to Del-Val.
 In anticipation of the settlement, Del-Val reflected in its third quarter report a net provision of $6 million, representing additional loss provisions for the restructuring of loans receivable and the net change in the accrual for the assumption of guaranteed indebtedness aggregating approximately $15 million, net of extraordinary gains on the restructuring of indebtedness aggregating approximately $9 million.
 Although management considers the approval of the settlement and restructuring of the loans to be significant steps, Del-Val continues to face significant liquidity problems, loan defaults and outstanding litigation, including a shareholder class action and shareholder derivative actions.
 -0- 11~20~92
 ~CONTACT: Richard K. Moeller of Del-Val Financial, 201-487-1300~
 (DVL)


CO: Del-Val Financial Corporation ST: New Jersey IN: FIN SU: ERN

WB-KD -- NY059 -- 3581 11~20~92 17:32 EST
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Publication:PR Newswire
Date:Nov 20, 1992
Words:234
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