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MORTGAGE AND REALTY TRUST CLOSES CREDITOR SOLICITATION; NECESSARY 100 PERCENT ACCEPTANCE WAS RECEIVED

 MORTGAGE AND REALTY TRUST CLOSES CREDITOR SOLICITATION;
 NECESSARY 100 PERCENT ACCEPTANCE WAS RECEIVED
 ELKINS PARK, Pa., July 15 /PRNewswire/ -- Mortgage and Realty Trust (NYSE: MRT) announced today that it yesterday closed its previously announced creditor solicitation after receiving 100 percent acceptance necessary to effect a consensual out-of-court restructuring of its outstanding $329 million of Creditor Obligations.
 The restructuring is expected to close today. At the closing, the trust will make payments that will bring it current on all of its outstanding debt.
 C.W. Strong Jr., president of MRT, stated today that the trust is very pleased with the vote of confidence given by its creditors through the unanimous support of the restructuring. Strong also acknowledged the assistance of MRT's Creditors' Committee, chaired by Prudential Capital Corporation, in the negotiation of the restructuring.
 Pursuant to the successful restructuring, the trust's outstanding Creditor Obligations are being modified to provide for, among other things: additional deferrals of the scheduled principal amortization during a temporary period; a temporary 9 percent cap on current payments of interest; a plan to require MRT to reduce non-performing assets or incur certain penalty fees; corresponding covenant adjustments; and a change in the approval mechanism to allow for third-party financings where the proceeds are used to repay Creditor Obligations. The modified securities will mature on June 30, 1995, with certain deferred payments payable no later than Dec. 31, 1995. The modified securities will continue to be secured by liens on all of MRT's assets.
 The restructuring is an integral part of the trust's overall undertaking to improve its financial and operating performance. MRT's trustees said they believe this restructuring will help maximize the long-term value of its assets and shareholder value.
 MRT is a self-administered real estate investment trust organized under the laws of the state of Maryland. The trust presently has invested assets of approximately $460 million which includes 65 mortgage loans and 41 investments in real estate equities located throughout the United States. MRT's financial advisor in the restructuring was Dean Witter Reynolds, Inc.
 /delval/
 -0- 7/15/92
 /CONTACT: Daniel F. Hennessey, treasurer of Mortgage and Realty Trust, 215-881-1525/
 (MRT) CO: Mortgage and Realty Trust ST: Pennsylvania IN: FIN SU: RCN


MP-LJ -- PH015 -- 9505 07/15/92 11:32 EDT
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Publication:PR Newswire
Date:Jul 15, 1992
Words:375
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