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GLENFED REACHES KEY AGREEMENTS TO RESTRUCTURE SECURITIES; ANTICIPATES EXTENTION OF JUNE 30 TARGET DATE TO RAISE CAPITAL

 GLENDALE, Calif., June 3 /PRNewswire/ -- GLENFED Inc. (NYSE: GLN), parent company of Glendale Federal Bank, said that it has reached agreements in principle with the steering committees representing certain holders of the company's debentures and Glendale Federal Bank's preferred stock regarding a proposed restructuring of those securities in connection with the bank's recapitalization.
 GLENFED also said that with the completion of this important step in the recapitalization process, it believes that the June 30, 1993, target date set by the Office of Thrift Supervision (OTS) for the bank to increase its regulatory capital may well be extended to accommodate a timeframe in which the overall recapitalization of the bank can be completed.
 "The endorsement of the restructuring by the two steering committees provides a significant boost to our prospects for successfully completing the recapitalization," stated Stephen J. Trafton, chairman and chief executive officer.
 "We are extremely pleased with this progress. The restructuring of these existing securities has been viewed by the bank and its advisors as a prerequisite to the substantial capital infusion required to restore the bank's regulatory capital position," Trafton added.
 The two steering committees which agreed to the proposed restructuring represent certain holders of GLENFED's 7 3/4 percent convertible subordinated debentures due 2001 and of the 12 percent non-cumulative perpetual preferred stock of Glendale Federal Bank. GLENFED said that details of the agreements regarding the restructuring must be held confidential until applicable regulatory filings can be made concerning the overall recapitalization transactions.
 Trafton reiterated prior statements that the proposed restructuring transactions, together with the substantial capital infusion required to restore the bank's regulatory capital position, are expected to result in substantial dilution of existing shareholders' interests in the company.
 As previously reported, the OTS has expressed its preliminary non-objection to the bank's pursuing its recapitalization strategy and, subject to demonstrating satisfactory progress in accomplishing the proposed transactions, has indicated that it may extend the time for completing the recapitalization of the bank beyond the June 30 target date set forth in a prompt corrective action directive issued in January 1993.
 Trafton noted, "The agreements announced today demonstrate the bank's continued progress toward its ultimate goal of recapitalization. We expect to make additional announcements in the coming weeks."
 Glendale Federal Bank provides community banking services through 215 bank offices in California, Florida and Washington State.
 -0- 6/3/93
 /CONTACT: Judy Cunningham, 818-500-2274, or Jeff Misakian, 818-500-2824, both of Glendale Federal Bank/
 (GLN)


CO: GLENFED Inc.; Glendale Federal Bank ST: California IN: FIN SU: RCN

LS-JL -- LA021 -- 4813 06/03/93 09:12 EDT
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Publication:PR Newswire
Date:Jun 3, 1993
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