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NVR L.P. TO FILE PLAN OF REORGANIZATION

 McLEAN, Va., Jan. 14 /PRNewswire/ -- NVR L.P. (AMEX: NVR) tonight said that it and certain of its affiliates will file a joint Plan of Reorganization tomorrow morning with the United States Bankruptcy Court for the Eastern District of Virginia, Alexandria Division. 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 plan as filed and believes the plan is in the best interests of all classes of NVR's unsecured creditors, subject to satisfactory resolution of the final details of the restructuring.
 Trade claims, homeowner claims, and employee claims, will continue to be unaffected by the bankruptcy proceedings. Virtually all of these claims have been paid on a current basis since the bankruptcy filing.
 The plan provides for the cancellation of NVR's $205 million subordinated bonds in exchange for the issuance of approximately 90.6 percent of the new limited partner interests (new units) in NVR that would be outstanding on the effective date of the plan. The remaining new units would be allocated among NVR's existing unitholders (6 percent), its preferred interests (2 percent), and others. In addition, existing unitholders would receive warrants to purchase new units, representing an additional one percent of the fully diluted new units. NVR's management would receive certain incentive equity interests that, if fully vested and exercised, would dilute all outstanding new units and would represent approximately 9.8 percent of the fully diluted new units.
 The plan also provides for the payment in full of the claims of NVR's principal pre-petition bank lenders with new senior secured notes. NVR intends to pursue negotiations with the banks regarding the proposed treatment of their claims under the plan.
 The plan also contemplates the creation of a new organizational structure for NVR in which the holders of new units would have the right to elect the board of directors of NVR's general partner.
 Dwight C. Schar, chairman of the company, noted that "Since the filing of NVR's Chapter 11 petitions, NVR's homebuilding and financial services businesses both have operated profitably, which has resulted in the company having sufficient liquidity to continue to operate in accordance with its business plan."
 The plan will not become effective until it is confirmed by the bankruptcy court following the solicitation by NVR of acceptances of the plan pursuant to a disclosure statement and all other conditions to the plan's effectiveness are satisfied or waived. The company anticipates filing a disclosure statement shortly, and moving forward promptly to seek its plan of reorganization.
 -0- 1/14/93
 /CONTACT: Doug Poretz of Douglas Poretz, Ltd., 703-506-1778, or after hours, 703-448-1312, for NVR L.P./
 (NVR)


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

TM -- NY077 -- 4663 01/14/93 00:05 EST
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Publication:PR Newswire
Date:Jan 14, 1993
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