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HALLWOOD REALTY PARTNERS AND STANWICK TO RESCIND TRANSACTION

 HALLWOOD REALTY PARTNERS AND STANWICK TO RESCIND TRANSACTION
 DALLAS, May 8 /PRNewswire/ -- Hallwood Realty Partners, L.P. (AMEX: HRY) and Stanwick, B.V. announced today that they agreed to rescind a transaction pursuant to which Hallwood Realty, through a subsidiary operating partnership, acquired certain assets from Stanwick and two of its indirect wholly owned subsidiaries, including an office building located in Tinton Falls, N.J., adjacent undeveloped land and certain mortgage loans associated with an office building located in
Detroit, Mich. The transaction, which was consummated as of October,


1991, will be rescinded as of that date. In consideration for the assets, Hallwood Realty issued to Stanwick approximately $29.3 million of unsecured subordinated promissory notes and assumed approximately $11.9 million of indebtedness secured by a first mortgage on the New Jersey Building.
 As a part of the transaction's rescission, the notes and assumption of indebtedness will be canceled.
 The agreement to rescind the transaction, which was approved by order of a federal district judge in San Francisco, was made in order to terminate one aspect of certain pending unitholder litigation. Both Hallwood Realty and Stanwick indicated that they continue to believe that the transaction was in the best interests of both companies, but that the ongoing costs and consequences of the litigation were effectively depriving both companies of the benefits of the transaction.
 In a related order, the judge denied the motion of the plaintiffs in the above-mentioned unitholder litigation to impose a constructive trust on the assets transferred to Hallwood Realty in its November 1990 rollup of certain Equitec real estate limited partnerships and denied the plaintiffs' request for the appointment of a receiver. The judge directed Hallwood Realty, among other things, to provide to the plaintiffs' lawyers certain public filings, financial reports and reports related to transactions not in the ordinary course of business. By stipulation, Hallwood Realty agreed not to make any cash distribution or pay any dividends to its unitholders until further order of the court.
 -0- 5/8/92
 /CONTACT: Richard Kelley of Hallwood Realty, 214-528-5588/ CO: Hallwood Realty Partners, L.P.; Stanwick, B.V. ST: Texas IN: SU:


SM -- NY079 -- 8318 05/08/92 18:16 EDT
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Publication:PR Newswire
Date:May 8, 1992
Words:365
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