Americana Hotels and Realty announces settlement agreement on
JFK Hilton Hotel
BOSTON--January 9, 1995--Americana Hotels and Realty Corp. (NYSE-AHR)
today announced a settlement in the bankruptcy litigation which had
prevented foreclosure of its $15.5 million first mortgage loan on the JFK
Hilton Hotel, New York.
A court order has now been issued confirming a plan of reorganization under
which AHRC and its borrower agreed on a restructured loan, the financial terms
of which include the receipt of $1 million in cash and a new $16 million first
mortgage with interest at 10.7 percent, a 4-year maturity, and two 1-year
extension options. The cash portion of the settlement has been received, and
the loan restored to earning status, effective as of Dec. 31, 1994.
Americana Hotels and Realty Corp. is a real estate investment trust which is
operating under a plan of disposition of assets and liquidation approved by
stockholders in 1988.
CONTACT: Americana Hotels and Realty Corp.
Morris W. Kellogg, 617/247-3358
NATIONAL GYPSUM OPPOSES SETTLEMENT TRUST MOTION
CHARLOTTE, N.C., January 9, 1995 -- National Gypsum Company (Nasdaq:
NGCO) today said that it will vigorously oppose a motion filed in the U.S.
Bankruptcy Court in Dallas by the NGC Settlement Trust (a trust administering
asbestos claims against the old National Gypsum Company) seeking to modify the
current order channeling future personal injury asbestos claimants to the
National Gypsum believes the motion is without merit, premature, represents
an inappropriate attempt to modify the previously confirmed Plan of
Reorganization, fails to state a claim on which relief can be granted and
raises issues as to whether the assets of the Trust are being properly
The motion, received by National Gypsum on January 5, 1995, requests the
Bankruptcy Court to suspend the channeling order with respect to unknown
(future) personal injury asbestos claims to permit those claims to be asserted
under applicable non-bankruptcy law against any person, including but not
limited to National Gypsum Company, who may be liable for such unknown claims.
The motion requests that the channeling order be suspended until such time as
the Trust determines that it has sufficient assets to resolve unknown personal
injury claims. The motion also seeks to preclude unknown personal injury
claimants and persons other than current asbestos bodily injury and property
damage claims, from seeking recovery, directly or indirectly against the
assets of the Trust.
The Plan of Reorganization, which became effective July 1, 1993, presently
discharges and permanently enjoins all asbestos claims, except unknown
personal injury asbestos claims, against old National Gypsum Company, the
Trust and the new Company. All unknown personal injury claims are channeled
to and are to be satisfied out of the Trust, and the holders of such claims
are enjoined from seeking recovery on account of any such claims from the
Company, unless and until the Trust ceases to exist without or before
resolving all unknown personal injury claims or upon order of the Bankruptcy
Court finding that the Trust cannot resolve all unknown personal injury
claims, whichever might first occur.
The motion alleges that given the Trust's assessment of the value of The
Austin Company (an engineering and construction firm formerly owned by the old
National Gypsum Company and now owned by the Trust), the continuing
uncertainty regarding pending insurance coverage litigation and based upon
cash flow models prepared for the Trust, the Trust appears to have assets
sufficient to resolve only asbestos-related property damage claims and
currently known asbestos disease claims and that they believe that it is
likely that the assets of the Trust will be insufficient to pay in full all
unknown asbestos claims. Specifically, the motion alleges that, depending on
the outcome of the insurance coverage litigation and the future value of
Austin, the Trust is confronted with a short-term cash flow and assets
shortage as well as longer-term uncertainty which prevents the Trust from
participating in the Georgine class action settlement or otherwise resolving
all unknown asbestos claims.
The motion indicates that a cash flow problem exists due in part to the
Trust's desire to currently segregate certain assets for the exclusive benefit
of property damage claimants. National Gypsum Company believes this action
would be contrary to the obligation of the Trustees not to prefer one
beneficiary over another and unnecessarily create a short-term cash flow
Notwithstanding these allegations, the Motion states that, under certain
circumstances, the Trust could have sufficient assets to fund settlements of
all property damage claims and current asbestos personal injury claims and a
substantial number of unknown asbestos claims over the next ten years and
possibly for in excess of twenty years.
The Trust has requested from the Company an amount, depending upon the
future value of the Trust's assets, of up to $160 million over the next eight
years in order to pay projected asbestos related claims. The Company has
advised the Trust that it does not believe that it is legally obligated to
assist the Trust and has declined its proposal.
In October 1994, the Trust filed a motion which contained factual
allegations similar to those in the most recent motion but requested that the
Bankruptcy Court permit the Trust to withdraw from the Center For Claims
Resolution (CCR), forego participation in the Georgine class action settlement
involving all CCR members and establish an alternative claims resolution
facility for asbestos personal injury claims. The October motion was
subsequently withdrawn by the Trust. The current motion states that the Trust
has advised the CCR of its intention to withdraw from the CCR and that the
Fund believes it is not presently a participant in the class action
settlement. The current motion does not request the establishment of an
alternative facility as required by the Plan of Reorganization.
National Gypsum Company has instructed its legal counsel to vigorously
oppose the Trust's motion and any modification to the Plan of Reorganization
which could adversely affect the Company.
/CONTACT: Allan V. Cecil, VP-Corporate Communications and Investor
Relations, 704-365-7227 or Fax 704-365-7391/
ORANGE COUNTY REACHES AGREEMENT ON DISTRIBUTION OF PRE-PETITION PROPERTY
TAXES; SCHOOLS AND MUNICIPALITIES EXPECTED TO RECEIVE $175 MILLION
SANTA ANA, California, January 6, 1995 -- Orange County late today announced
that it would ask the Bankruptcy Court for authorization to distribute $175
million in property taxes collected prior to the County's Chapter 9 filing
last month and invested in the County's investment pool.
County bankruptcy counsel Lee Bogdanoff of the law firm of Stutman, Treister
& Glatt said, "Today's action puts behind us a very difficult and potentially
"Even more important, however, is that it provides additional relief to
municipalities and schools that have been deprived of critical operating funds
for the past month."
According to Mr. Bogdanoff, of the $175 million, the County of Orange will
receive approximately $15.5 million in pre-petition tax revenues, cities and
municipalities will receive $22 million and school districts $75 million.
Gaddi H. Vasquez, chairman of the County Board of Supervisors said, "This is
welcome news to the cities and schools who had been anticipation these funds.
The process is working and having a positive impact on and meaningful results
for local jurisdictions."
Mr. Bogdanoff said that the agreement represents "a cooperative effort on
the part of the County and investment pool creditors as well as cities who
were caught up in the bankruptcy process -- not as investors -- but as
bystanders to the County's financial situation.
"This represents the third major hurdle we've crossed since the case began,"
Mr. Bogdanoff said, "the first being the restructuring of the portfolio and
the second the distribution program. We are justifiably pleased with the
progress made thus far."
/CONTACT: Sandra Sternberg or Michael Kolbenschlag of Sitrick Krantz & Co.,
714-834-4720 or 310-788-2850/
RELEASED: January 9, 1995