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SHAWMUT NAMED IN LAWSUIT FILED IN CONNECTION WITH TOWERS FINANCIAL CORPORATION

 HARTFORD, Conn., and BOSTON, July 19 /PRNewswire/ -- Shawmut National Corporation (NYSE: SNC) confirmed that its Shawmut Bank Connecticut subsidiary had been named in a lawsuit filed in federal court in Manhattan by purchasers of bonds backed by certain healthcare receivables and issued by subsidiaries of Towers Financial Corporation.
 The lawsuit also names Duff & Phelps Credit Rating Co. The suit seeks damages in an undetermined amount equal to the difference between the current value of the bonds and their face amount of approximately $200 million, plus interest, as well as punitive damages.
 Shawmut Bank Connecticut acted as trustee on the bonds issued by the Towers subsidiaries and purchased by institutional investors. The subsidiaries defaulted on the bonds earlier this year and later filed for bankruptcy protection, as did Towers. The complaint alleges that Towers engaged in a massive fraud against bondholders.
 Shawmut declined to comment on the lawsuit, other than to say that it believed its actions were reasonable and appropriate and were not the cause of any loss by the bondholders.
 -0- 7/19/93
 /CONTACT: Robert L. Guenther (media), 203-240-1267 or Thomas R. Rice (investors), 203-728-4872, both of Shawmut/
 (SNC)


CO: Shawmut National Corporation ST: Connecticut, Massachusetts IN: FIN SU:

SJ -- NE017 -- 3211 07/19/93 15:58 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
Words:210
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