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PSH MASTER L.P. I ANNOUNCES LOAN RESTRUCTURE AGREEMENT AND 1991 RESULTS

 PSH MASTER L.P. I ANNOUNCES LOAN RESTRUCTURE
 AGREEMENT AND 1991 RESULTS
 DUBLIN, Ohio, March 3 /PRNewswire/ -- PSH Master L.P. I today announced that it has reached an agreement in principle with Aetna Life Insurance Company to reduce the interest "pay" rate on its first mortgages through 1994 and, in return, grant Aetna a share of the net sale or refinance proceeds of the hotels. Differences between the contract interest rate and the new pay rates would be accrued by Aetna. It is anticipated that no cash distributions will be made to limited partners so long as accrued interest is owing to Aetna and Aetna is obligated to accept debt service payments below the contract rate.
 In addition, an agreement in principle has been reached with Guest Quarters, the operator of the three hotels, to provide loans to the Partnership up to $1,500,000 for capital improvements and for funding of operating deficits, if needed, after 1991. The Partnership agreed to modify the incentive management fee to Guest Quarters based upon achieving agreed profit levels and for non-disturbance of Guest Quarters if their loans are unpaid.
 PC Development Limited Partnership, the managing general partner of PSH Master L.P. I, filed a petition pursuant to Chapter 11 of the Bankruptcy Code on Feb. 1, 1991. A Plan of Reorganization and Disclosure Statement was filed on Dec. 30, 1991 and on Feb. 28, 1992 the court approved the Disclosure Statement and set a date of April 3, 1992 for a confirmation hearing on the plan. The partnership has filed a claim in the amount of $5,019,276 due to PC Development's default under its "Performance and Breakeven Guaranty." The settlement amount cannot be determined until after confirmation of the plan but proceeds from this claim will be used to reduce first mortgage debt.
 The Partnership also announced the results of its fourth quarter and year ended Dec. 31, 1991. The cash loss for 1991 (net loss before depreciation and amortization expense) was $1,458,980 or $.47 per unit, compared to a cash loss of $497,456, or $.16 per unit, in 1990. The cash loss for the fourth quarter of 1991 was $626,656, or $.21 per unit, compared to a cash loss of $841,253, or $.27 per unit, in the last quarter of 1990. The Partnership realized significant improvement at the Tampa and Raleigh/Durham hotels in both the fourth quarter and full year results, but these gains were more than offset by substantial revenue declines at the Disney hotel.
 Combined occupancy during 1991 was 69.8 percent, up from 68.8 percent in 1990. Fourth quarter occupancy increased to 64.5 percent from 62.9 percent in the last quarter of 1990. Operating revenues of the Partnership were $18,209,166 in 1991, resulting in a net loss of $4,917,404, or $1.57 per unit. Comparative results for 1990 were revenues of $20,641,496 and a net loss of $4,043,188, or $1.29 per unit. Fourth quarter results for 1991 were operating revenues of $4,200,797 and a net loss of $1,437,438, or $.46 per unit. Results for the last quarter of 1990 were revenues of $5,363,118 and a net loss of $1,957,917, or $.62 per unit.
 -0- 3/3/92
 /CONTACT: Stephen C. Denz of PSH Master L.P. I, 655 Metro Place South, Dublin, Ohio, 43017; 614-889-6500/ CO: PSH Master L.P. I ST: Ohio IN: SU:


LC -- CL020 -- 4708 03/03/92 17:38 EST
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Publication:PR Newswire
Date:Mar 3, 1992
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