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SOUTHMARK TO REDEEM NOTE ISSUE

 DALLAS, Sept. 10 /PRNewswire/ -- Southmark Corporation (OTC) today reported that its board of directors has authorized the redemption of $38.9 million of Southmark 12 percent Secured, Redeemable Notes due 1997.
 The redemption is the result of the recent completion of two transactions.
 Southmark has completed the settlement of litigation with the Resolution Trust Corporation as receiver for San Jacinto Savings Association F.A., Lincoln Savings and Loan Association F.A., and certain other savings and loan institutions. The settlement with the RTC resulted in net proceeds of approximately $13.2 million to Southmark.
 Southmark also has received a total of $23.2 million representing its portion of the proceeds of the previously announced settlement of Parker and Parsley Petroleum Company, et al v. Dresser Industries, Inc., Baker Hughes, et al. The lawsuit was brought by Parker & Parsley Petroleum Company on behalf of approximately 18,000 working interest owners and partners in partnerships sponsored by Parker & Parsley. Southmark was entitled to a portion of the proceeds of the settlement under the terms of Southmark's sale in 1989 of its interest in Parker & Parsley.
 The $38.9 million of notes to be redeemed is the remaining outstanding balance of the $75 million issued in August 1990 as part of Southmark's Chapter 11 plan of reorganization. The notes are redeemable at 100 percent of face amount, plus interest accrued through the date of redemption under the terms of the Indenture. Holders should receive notice from the indenture trustee, IBJ Schroder, within fifteen (15) days detailing instructions for surrender of the notes. Payment is expected to be made within approximately forty-five (45) days.
 Southmark Corporation, headquartered in Dallas, is engaged in the liquidation of its assets in accordance with its court-approved Chapter 11 plan of reorganization.
 -0- 9/10/93
 /CONTACT: Charles B. Brewer, executive vice president of Southmark, 214-406-6775; or Susan A. Seiter of Susan Seiter Associations, 817-488-3142/


CO: Southmark Corporation ST: Texas IN: SU:

LG -- NY046 -- 0788 09/10/93 13:52 EDT
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Publication:PR Newswire
Date:Sep 10, 1993
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