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GRANT STREET NATIONAL BANK RESUMES REDEMPTION OF STOCK

      GRANT STREET NATIONAL BANK RESUMES REDEMPTION OF STOCK
    PITTSBURGH, Nov. 8 /PRNewswire/ -- Grant Street National Bank (in liquidation) announced today that it has resumed redemptions of its 17 percent senior preferred stock, all of which is held by Mellon Bank Corporation (NYSE: MEL).
    Redemptions were suspended in February in the wake of a large judgment rendered against Grant Street by a Colorado jury in a lender liability case.
    William B. Eagleson Jr., chairman, president and chief executive officer, said that Grant Street has completed a review with legal counsel of its possible exposure in the Colorado case and in other litigation in which the bank is involved. Grant Street believes that cash presently available is more than sufficient to provide for the possible adverse outcome of all significant litigation and for certain other liabilities. Therefore, $10 million has been paid to Mellon, reducing the senior preferred issue to less than $16 million. Further redemptions will be made as additional cash becomes available from asset liquidations.
    Eagleson also said that court-directed settlement negotiations with the plaintiff as well as separate conversations with Mellon seeking effectively to remove Grant Street from the Colorado litigation have each been inconclusive and neither is now on-going.
    -0-                     11/8/91
    /CONTACT:  Robert L. Logan of Grant Street National Bank, 412-391-3769/
    (MEL) CO:  Grant Street National Bank; Mellon Bank Corporation ST:  Pennsylvania IN:  FIN SU: CD -- PG004 -- 2565 11/08/91 11:15 EST
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Publication:PR Newswire
Date:Nov 8, 1991
Words:238
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