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MCORP ANNOUNCES AGREEMENTS REGARDING CHAPTER 11 CASES

 DALLAS, March 15 /PRNewswire/ -- An agreement in principle was announced today in the chapter 11 cases of MCorp, MCorp Financial Inc. and MCorp Management between the debtors and certain senior and junior bondholders. The agreement provides for a consensual plan of reorganization for all three debtors that would embody a settlement reached earlier between the senior bondholders and the FDIC. The agreement is currently being reviewed by a number of other affected parties, and a term sheet reflecting the agreement is being prepared.
 The agreement contemplates a substantial interim distribution to senior bondholders, if approved by United States District Judge Lynn N. Hughes of the Southern District of Texas, who is presiding over the chapter 11 cases. The agreement compromises a number of issues relating to the FDIC settlement and the treatment of junior bondholders. In exchange for numerous concessions, it was agreed to limit the recovery of senior bondholders to $309 million in value, which may be further reduced based on the timing and amount of the interim distribution.
 The agreement must be documented in a chapter 11 plan and submitted to creditors for a vote. The plan must also be approved by Judge Hughes, who earlier assumed jurisdiction from the Bankruptcy Court over issues relating to confirmation of the plan.
 -0- 3/15/93
 /CONTACT: Michael D. Magill of MCorp, 214-939-5884/


CO: MCorp.; MCorp Financial Inc.; MCorp Management ST: Texas IN: FIN SU: BCY RCN

TM -- SF015 -- 6297 03/15/93 18:19 EST
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Publication:PR Newswire
Date:Mar 15, 1993
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