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DEL-VAL FINANCIAL CORPORATION COMPLETES SETTLEMENT WITH CREDITOR

 BOGOTA, N.J., Oct. 25 /PRNewswire/ -- Del-Val Financial Corporation (NYSE: DVL), a real estate investment trust, today announced that it has completed a settlement with one of its creditors which will result in a reduction in the company's defaulted indebtedness of approximately $8 million and the dismissal of litigation entitled Citytrust v. Del-Val Financial Corp. and Kenbee Management, Inc. Under the agreement, Del-Val will issue 250,000 shares of common stock, the creditor will retain an additional 100,000 shares of common stock pledged to it in 1989 and Del-Val will pay $1,800,000 in installments through June 15, 1994. The installments will be reduced by the proceeds of the liquidation of the remaining collateral pledged to this creditor.
 As a result of this settlement, Del-Val will recognize a gain on the restructuring of indebtedness of approximately $3.4 million in its third quarter earnings and additional gains aggregating $3.3 million as the installments are paid.
 -0- 10/25/93
 /CONTACT: Robert W. LoSchiavo, Esq., 201-487-1300/
 (DVL)


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

GK-RW -- NY046 -- 6226 10/25/93 10:47 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
Words:187
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