HOMEFED BANK DEPOSITORS AND OPERATIONS NOT AFFECTED BY BONDHOLDER PETITION
HOMEFED BANK DEPOSITORS AND OPERATIONS
NOT AFFECTED BY BONDHOLDER PETITION
SAN DIEGO, June 26 /PRNewswire/ -- The president of HomeFed Bank, FSB, a subsidiary of HomeFed Corp., today clarified that action taken by a group of bondholders yesterday has no affect on the operations of the bank.
An informal group of HomeFed Corp. bondholders filed a petition for involuntary bankruptcy yesterday. HomeFed Corp. has 20 days to respond to the petition.
"This is a claim against the holding company, not the bank," said Thomas J. Wageman, president and chief executive officer of HomeFed Bank. "In no way does it affect the operations of HomeFed Bank, the insurance of our clients' accounts or the safety of our depositors' funds."
Wageman added that financial institutions are not subject to the jurisdiction of the bankruptcy courts.
HomeFed Bank has 201 offices throughout California.
/CONTACT: Monica Wiley of HomeFed, 619-450-7885/ CO: HomeFed Bank, FSB; HomeFed Corp. ST: California IN: FIN SU: JL -- SD001 -- 4285 06/26/92 14:28 EDT