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DEL-VAL FINANCIAL REACHES SETTLEMENT ON SHAREHOLDER CLASS ACTION

 BOGOTA, N.J., Sept. 16 /PRNewswire/ -- Del-Val Financial Corporation (NYSE: DVL), a real estate investment trust, today announced that it has reached a settlement of the shareholder class action entitled In Re Del-Val Financial Corporation Securities Litigation. The settlement has been submitted for approval by the U.S. District Court for the Southern District of New York which has ordered that a fairness hearing be conducted by the court before a final judgment can be entered.
 By the terms of the settlement, if finally approved by the court, Del-Val will issue 900,000 shares of Del-Val common stock at a guaranteed value of $1.50 per share and $9 million of notes and make a payment of cash or common stock aggregating $1,400,000. In the event the value of the 900,000 shares of common stock is less than $1,340,000 on the distribution date, Del-Val will issue additional notes to cover the difference. The notes mature in 10 years, bear interest at 10 percent per annum, with interest payable in kind for five years, are callable after three years, and are payable in cash or stock at the company's option. It is anticipated these securities will be issued in early 1994.
 In anticipation of the settlement, Del-Val provided for a reserve of $6.4 million in 1992, representing its estimate of the fair market value of the securities to be issued under the terms of the settlement. This reserve is subject to an independent valuation of such securities.
 Although management considers the preliminary approval of the settlement a significant step in its efforts to resolve its ongoing difficulties, Del-Val continues to face significant liquidity problems and loan defaults.
 -0- 9/16/93
 /CONTACT: Robert W. LoSchiavo, attorney, of Del-Val Financial Corporation, 201-487-1300/
 (DVL)


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

CK-OS -- NY034 -- 2647 09/16/93 11:31 EDT
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Publication:PR Newswire
Date:Sep 16, 1993
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