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NVR, AFFILIATES FILE SECOND AMENDED JOINT PLAN OF REORGANIZATION

 MCLEAN, Va., May 24 /PRNewswire/ -- NVR L.P. (AMEX: NVR) today announced that it and certain of its affiliates have filed their Second Amended Joint Plan of Reorganization and related disclosure statement with the bankruptcy court. In addition, affiliates of NVR today filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering of $150 million of senior notes due 2003, as contemplated in the plan.
 As previously announced, the revised plan provides that NVR will pay in full the claims of its principal pre-petition bank lenders in cash, through the proposed issuance of the senior notes, concurrent with the consummation of the plan. Bear, Stearns & Co. Inc. will act as the sole underwriter in connection with the proposed public offering of the notes. The notes will be guaranteed by certain subsidiaries of NVR.
 Additionally, the revised plan provides that holders of equity interests in NVR (including those who will receive interests as part of the plan) will vote on whether NVR will convert from a partnership to a corporation in a series of merger transactions. The plan also provides for implementation of a new working capital financing arrangement simultaneously with the consummation of the plan. All other material terms of the plan are substantially the same as the plan filed in early February, including the cancellation of NVR's $206 million principal amount of subordinated bonds in exchange for approximately 91 percent of the new equity interests in NVR.
 The court-appointed Unsecured Creditors' Committee, which represents all of NVR's unsecured creditors (including the holders of its subordinated bonds), has informed NVR that the committee supports the revisions to the plan. Because the principal pre-petition bank lenders will be receiving full payment in cash upon the consummation of the plan, the bank group will be deemed to have accepted the plan under the bankruptcy laws.
 NVR also announced that, as of May 21, 1993, NVR terminated its prior working capital and mortgage warehouse financing facilities provided by two members of its pre-petition bank group, Citicorp Real Estate, Inc., and PNC Bank, N.A., and entered into a new working capital financing provided by The First National Bank of Boston and a new mortgage warehouse financing arrangement with a syndicate of banks led by Bank One, Texas N.A.
 A hearing to approve the amended disclosure statement has been scheduled for June 1, 1993, following which NVR will disseminate its plan and disclosure statement to creditors and equityholders for their approval by the requisite vote, with a view towards a hearing on confirmation of the plan in mid-July. NVR anticipates that the earliest date for the commencement of the proposed public offering and the effective date of the plan is August 1993.
 A registration statement relating to the notes has been filed with the Securities and Exchange Commission but has not yet become effective. The notes may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 Preliminary prospectuses relating to the notes will not be distributed until after confirmation of NVR's revised plan.
 -0- 5/24/93
 /CONTACT; Doug Poretz for NVR, 703-506-1778 or, after hours, 703-448-1312/
 (NVR)


CO: NVR L.P. ST: Virginia IN: CST SU: OFR

DC-KD -- DC022 -- 3396 05/24/93 13:32 EDT
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Publication:PR Newswire
Date:May 24, 1993
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