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DEL-VAL FINANCIAL ANNOUNCES THE COMPLETION OF SETTLEMENT AND RESTRUCTURING OF TWO DEBTS TOTALLING $21.2 MILLION

 DEL-VAL FINANCIAL ANNOUNCES THE COMPLETION OF SETTLEMENT
 AND RESTRUCTURING OF TWO DEBTS TOTALLING $21.2 MILLION
 BOGOTA, N.J., May 4 /PRNewswire/ -- Del-Val Financial Corporation (NYSE: DVL), a real estate investment trust, today announced the completion of the settlement and restructuring of two of its debts totalling $21.2 million.
 The company purchased $11.8 million of its own indebtness and a loan receivable for a total purchase price of $3.3 million. The loan receivable was immediately sold to a thrid party for $1.1 million. The company financed $2.7 million of the $3.3 million purchase price with a creditor of the company. The Trigon Group, Inc., the company's investment bankers, assisted in this purchase.
 The same creditor which provided the aforementioned financing, agreed to a restructuring of a portion of the company's indebtness, aggregating $9.4 million, by granting the company extended payment terms, reduced interest rates and a reduction in accrued and unpaid interest in return for a pledge of additional collateral and an assumption of an affiliate's indebtness to the creditor.
 Management estimates the net effect of extraordinary restructuring gain and settlement loss should result in an increase in the company's second quarter net income of approximately $8 million. Although management considers the successful completion of these settlements and restructurings to be an important step in its effort to restructure indebtness and settle litigation, the company continues to face significant liquidity problems, loan defaults and outstanding litigation and investigations.
 -0- 5/4/92
 /CONTACT: Richard K. Moeller of Del-Val Financial, 201-487-1300/
 (DVL) CO: Del-Val Financial Corporation ST: New Jersey IN: FIN SU: RCN


KD-SM -- NY112 -- 6273 05/04/92 17:52 EDT
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Publication:PR Newswire
Date:May 4, 1992
Words:278
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