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THOUSAND TRAILS TO PURSUE ALTERNATIVES TO PREVIOUSLY PROPOSED REFINANCING AND BUSINESS COMBINATION

 THOUSAND TRAILS TO PURSUE ALTERNATIVES TO PREVIOUSLY PROPOSED
 REFINANCING AND BUSINESS COMBINATION
 DALLAS, March 31 /PRNewswire/ -- USTrails Inc. (OTC) and Thousand Trails, Inc. (NASDAQ: TRLS) jointly announced today that they believe it is unlikely that they will be able to effect the previously proposed private placement refinancing for the $12.5 million subordinated notes of Thousand Trails and the related business combination between the companies. The subordinated notes became due on March 16, 1992, and Thousand Trails does not have the funds to repay them.
 The companies said that their recent operating results, anticipated cash positions and need to restructure sales and other activities require that other alternatives be pursued to address the maturity of the subordinated notes and the companies' ongoing cash requirements. These alternatives include the possible filing by Thousand Trails for relief under Chapter 11 of the Bankruptcy Code.
 The companies also stated that, although they are no longer pursuing the previously contemplated business combination, there continue to be advantages to the companies of USTrails increasing its ownership of Thousand Trails to 80 percent of the outstanding common stock, and USTrails is continuing to study whether alternatives are available to permit it to do so.
 The companies also announced that in response to a letter delivered on behalf of more than a majority in principal amount of its noteholders, Thousand Trails expects to resume discussions with these noteholders concerning the subordinated notes. The companies had been working with the financial adviser of the noteholder group for several months before the notes matured and


announced their pursuit of the refinancing and business combination after discussions with the noteholder group ended. The companies said that there is no assurance that a satisfactory agreement with the noteholder group can be reached or that such agreement, if reached, would avoid a filing by Thousand Trails under Chapter 11.
 Thousand Trails operates one of the largest membership-based destination campground resort systems in the United States. The company owns, operates and sells memberships in a network of 39 campground resorts in 15 states and in British Columbia, Canada.
 In addition to its 69 percent interest in Thousand Trails, USTrails owns National American Corporation (NACO), which operates a network of 30 campground resorts and eight full service resorts.
 -0- 3/31/92
 /CONTACT: Walter Jaccard of Thousand Trails, 206-455-3155, or Susan A. Seiter of Susan Seiter Associates, 817-488-3142, for USTrails/
 (TRLS) CO: USTrails Inc.; Thousand Trails Inc. ST: Texas IN: LEI SU: FNC


TS -- NY026 -- 3276 03/31/92 09:37 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 31, 1992
Words:418
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