LEPERCQ FUNDS TERMINATE AGREEMENT WITH REALTY REFUND
LEPERCQ FUNDS TERMINATE AGREEMENT WITH REALTY REFUND NEW YORK, May 20 /PRNewswire/ -- Lepercq Corporate Income Fund L.P.
and Lepercq Corporate Income Fund II L.P. announced today that they have terminated their Agreement with Realty ReFund Trust (NYSE: RRF), which Agreement contemplated the acquisition through merger of the two Partnerships by RRF.
The General Partners of the two Partnerships decided to terminate the Agreement with RRF at this time as a result of placing on non- accrual status two of RRF's mortgage loans both of which are secured by a single office building in Chicago, and together represent a major part of RRF's mortgage loan portfolio. In spite of such termination, the General Partners expect to engage with RRF in discussions concerning the possibility of concluding with RRF a renegotiated transactions. The General Partners also announced their intention to continue exploring other possible alternatives for the two Partnerships with a view toward providing the Partnerships with enhanced investment and capital raising flexibility so as to better position the Partnerships to deal with and benefit from the current difficult real estate environment, as well as to provide limited partners with the opportunity for receiving near-term liquidity. These other alternatives are being focused in the short-term on seeking out other strategic merger partners for the Partnerships, restructuring or reorganizing the Partnerships and other possible courses of action. In a separate development, the two Partnerships announced that on April 27, 1992, a purported class action complaint was filed in the Court of Chancery of the State of Delaware, alleging that the two Partnerships and their General Partners have breached their fiduciary duties to limited partners by virtue of having entered into the Agreement with RRF, which has now been terminated. The two Partnerships and the General Partners intend to defend this litigation vigorously and are in the process of analyzing its ramifications, especially in view of the decision of the two Partnerships to terminate the RRF Agreement. The decision to terminate the Agreement with RRF was not in any way based on the commencement of this litigation. -0- 5/20/92 /CONTACT: E. Robert Roskind of Lepercq Corporate Income Fund, 212-692-7200 or Tim Ernst or Hill & Knowlton, 212-697-5600, for Lepercq Corporate Income Fund/ (RRF) CO: Lepercq Corporate Income Fund L.P.; Lepercq Corporate Income Fund II L.P.; Realty ReFund Trust ST: New York IN: FIN SU:
TS -- NY041 -- 2271 05/20/92 10:53 EDT
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|Date:||May 20, 1992|
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