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MORTGAGE AND REALTY TRUST ISSUES ANNOUNCEMENT

 MORTGAGE AND REALTY TRUST ISSUES ANNOUNCEMENT
 ELKINS PARK, Pa., June 30 /PRNewswire/ -- Mortgage and Realty Trust


(NYSE: MRT) said today it is continuing its previously announced solicitation for acceptances from holders of MRT's outstanding Creditor Obligations, which were issued pursuant to a plan of reorganization confirmed in February 1991.
 The solicitation is seeking acceptances to MRT's consensual debt modification and, in addition, consents to a pre-packaged plan of reorganization.
 The solicitation commenced on June 15, 1992, and is set to expire on July 14, 1992. Payments of approximately $37.8 million in principal and approximately $6.6 million in interest are due today on MRT's existing Creditor Obligations. As indicated at the time of the commencement of the solicitation, MRT said it will not be able to make the scheduled principal payment primarily because of the current depressed conditions of the U.S. real estate markets. However, MRT said it did make the June 30, 1992, interest payment.
 C.W. Strong Jr., president of MRT, stated today that the solicitation is "going very well" and he is hopeful of receiving a 100 percent vote in favor of accepting the debt modifications, although there can be no assurance that MRT will be able to do so. MRT said it has not received any votes against the debt restructuring. If MRT receives acceptances to the debt modifications from 100 percent of the holders of Creditor Obligations, MRT intends to conduct a closing with the members of its Creditors' Committee as soon as practicable after the expiration of the solicitation to implement the consensual debt modifications. If MRT does not receive acceptances to the modifications from 100 percent of the holders of Creditor Obligations, MRT said it expects to receive sufficient votes to commence a bankruptcy case and file a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code to effect the same debt restructuring in the bankruptcy case.
 Because MRT said it will need acceptances from all holders of Creditor Obligations to implement the restructuring outside of bankruptcy proceedings, there can be no assurance MRT will be able to do so. Any reorganization pursuant to Chapter 11 will involve risks and costs beyond the control of MRT.
 MRT is a self-administered real estate investment trust organized under the laws of the state of Maryland. MRT presently has invested assets of approximately $457 million, which includes 65 mortgage loans and 41 investments in real estate equities located throughout the United States.
 /delval/
 -0- 6/30/92
 /CONTACT: Daniel F. Hennessey, treasurer of Mortgage and Realty Trust, 215-881-1525/
 (MRT) CO: Mortgage and Realty Trust ST: Pennsylvania IN: FIN SU: BCY


JS-LJ -- PH035 -- 5310 06/30/92 16:12 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
Words:449
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