ELKINS PARK, Pa., Oct. 10, 1995 -- href="chap11.mortgage.html">Mortgage and Realty
Trust (NYSE: MRTWI) announced today that its Prepackaged Plan of
Reorganization under Chapter 11 of the Bankruptcy Code was declared
effective by the United States Bankruptcy Court for the Central
District of California on Friday, September 29, 1995.
Under the Prepackaged Plan, holders of the Trust's $290,000,000
principal amount of Senior Secured Uncertificated Notes due 1995
received (i) $110,000,000 principal amount of newly issued 11-1/8%
Senior Secured Notes due 2002, (ii) $71,000,000 in cash and (iii)
approximately 10,889,430 new Common Shares representing in the
aggregate approximately 97% of the Common Shares outstanding after
the effective date. In connection with the Prepackaged Plan, the
Trust effected a 33.33 for one reverse stock split of its
outstanding Common Shares.
Jeffrey Altman, Martin Bernstein, Richard S. Frary, Richard B.
Jennings, John B. Levy, Carl A. Mayer, Jr. and George R. Zoffinger
have been designated to serve on the Board of Trustees of the
reorganized Trust, and Mr. Altman has been designated Chairman of
the Board. The newly constituted Board of Trustees held its first
meeting on Monday, October 2, 1995, and appointed Mr. Zoffinger
President and Chief Executive Officer. Mr. Zoffinger most recently
served as Chairman of the Board of CoreStates New Jersey National
Bank. The Board also appointed Mr. Jennings Chairman of the Audit
Committee and Mr. Bernstein Chairman of the Compensation and
The Board of Trustees also voted to (i) propose to the
shareholders of the Trust that the name of the Trust be changed to
"Value Property Trust" (which was approved by over 94% of the
Trust's shareholders in written consents received on October 6,
1995) and (ii) move the Trust's principal place of business from
Elkins Park, Pennsylvania, to New Brunswick, New Jersey.
MRT is a self-administered real estate investment trust with a
portfolio of over 72 commercial, industrial and other real estate
assets. MRT has offices in Elkins Park, Pennsylvania, and Burbank,
/CONTACT: George R. Zoffinger, President of Mortgage and Realty
SAN DIEGO, Calif.--Oct. 10, 1995--This October,
Academic Press will release "Big Bets Gone Bad: Derivatives and
Bankruptcy in Orange County." In December 1994, href="chap11.orange.html">Orange County
became the largest municipality in U.S. history to become bankrupt.
By borrowing heavily and placing the wrong bets, Orange County
Treasurer Robert Citron lost $1.7 billion of Orange County's $7.4
billion investment portfolio.
"Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County"
is the first detailed description of the Orange County bankruptcy.
Author Phillipe Jorion, the only professor in Orange County who
teaches and researches derivatives, is uniquely placed to understand
the technical details of the portfolio and climate in Orange County
municipal government that encouraged the decisions that led to the
"Big Bets Gone Bad" provides an introduction to the U.S. bond
market and details Federal Reserve Chairman Greenspan's efforts to
tighten credit. Its description of the $35 trillion derivatives
market makes the losses of Barings Bank, Kashima Oil, West Virginia,
and Metallgesellschaft more understandable.
This book is beneficial because it:
Academic Press, a subsidiary of Harcourt Brace & Company, is one
of the world's leading publishers of scientific and technical books
CONTACT: Tomi Holt Enterprises,
Kathlene Carney, 707/765-1234
DALLAS--Oct. 10, 1995--
Net proceeds from the sale are estimated at $202 million in
cash, subject to adjustment under certain circumstances. The
Company hopes to complete the sale, on an accelerated basis, within
approximately 30 to 45 days.
The Company also announced that, to avoid any policyholder
confusion between the holding company (Southwestern Life
Corporation) and its Southwestern Life Insurance Company subsidiary,
it has restored, effective immediately, the name of the holding
company to I.C.H. Corporation (ICH), by which the Company was known
prior to June 1994.
To preserve the value of its financially strong insurance
subsidiaries for the benefit of its creditors and stockholders and
to facilitate the successful completion of the Shinnecock Holdings
transaction, ICH also said that it and FMI have filed voluntary
petitions for relief under Chapter 11 of the U.S. Bankruptcy Code
and have requested expedited approval for the sale of the insurance
subsidiaries and the FMI assets. Following the sale, and prior to
any distributions to securityholders, ICH will present a plan of
reorganization to the Bankruptcy Court that will address the
resolution of its financial obligations.
The Company emphasized that none of its insurance companies are
involved in the bankruptcy filing and that its insurance businesses
will continue to operate in their ordinary course, including the
payment of claims and the issuance of new policies, and will not be
subjected to any extraordinary regulatory supervision. The Company
said that all of the insurance companies are well-capitalized, with
more than sufficient liquidity to fulfill all of their obligations
to policyholders. The Company also said that it has been working
closely with state insurance regulatory authorities and that they
are supportive of the actions being taken by ICH to protect the
interests of the policyholders of its insurance subsidiaries.
At closing, Shinnecock Holdings' management subsidiary, which is
expected to employ substantially all of ICH's Dallas-based
employees, will enter into agreements to provide administrative and
investment management services to ICH and its retained insurance
subsidiaries, which will continue to operate as ICH subsidiaries.
Glenn Gettier, ICH Chairman and Chief Executive Officer, said:
"We believe our agreement with Shinnecock Holdings, which followed a
broad solicitation of investment proposals and a careful review of
alternatives by us and our financial advisor, Donaldson, Lufkin &
Jenrette, permits ICH to realize fair value for the companies being
sold and provides needed liquidity to the holding company.
Additionally, the policyholders and agents doing business with these
insurance companies should be encouraged by the new owners'
financial strength, industry experience and commitment to success.
"At the same time, the decision to seek a court-supervised
reorganization for the holding company enhances our ability to
preserve ICH's value for its creditors and stockholders and to
complete both the Shinnecock Holdings transaction and the financial
reorganization of which it is a part."
Alan C. Snyder, Chief Executive Officer of The Shinnecock Group
LLC, who will also serve as Chief Executive Officer of Shinnecock
Holdings Inc., said: "The well-established insurance companies we
are acquiring have proud names, a talented and experienced
management team, and a long-standing tradition of providing enduring
value and efficient service to their policyholders. They have
strong relationships with their agents, who have served them well.
We look forward to building on those important strengths. We
believe that these companies and their dedicated employees and
agents will provide a solid platform for profitability and growth."
Snyder served as Chief Executive Officer of Aurora National Life
Assurance Company and Chief Operating Officer of Executive Life
Insurance Company, where, working with state regulators, he guided
that company through a successful rehabilitation and conservation
process. Prior to that, he was Executive Vice President and a
director of Dean Witter Financial Services Group.
Consummation of the transaction is subject to receipt of
regulatory approvals, to certain purchase price adjustments, and to
customary closing conditions, in addition to court approval.
Of the cash proceeds from the sale, up to $115 million will be
subject to certain escrow arrangements, including $67 million to
satisfy a previously disclosed tax settlement and $33 million to
protect Shinnecock Holdings with respect to various
indemnifications. In addition, the Company has agreed to withhold
$50 million from distribution until the later of August 31, 1997 or
the date at which all claims against the Company have been resolved,
to the extent such claims are pending.
Donaldson, Lufkin & Jenrette has rendered an opinion to ICH that
the consideration to be received by ICH from the transaction is fair
from a financial point of view.
Kelso Investment Associates V is an investment fund with more
than $700 million in committed capital managed by Kelso & Company.
GS Capital Partners II is an investment fund with $1.8 billion in
capital managed by an affiliate of Goldman, Sachs & Co. The capital
of both funds is derived largely from investments by individuals,
trusts and institutional investors.
I.C.H. Corporation is an insurance holding company whose
insurance subsidiaries market life insurance, individual and group
health insurance, annuities and fee-based administrative services.
CONTACT: I.C.H. Corporation,
Gerald J. Kohout, 214/954-7414
Shinnecock Holdings Inc.,
Stan Levenson, Levenson Public Relations, 214/880-0200
SAN DIEGO, Oct. 10, 1995 -- href="chap11.amerifilm.html">American Film Technologies,
Inc. (OTC BULLETIN BOARD: AFTC, AFTC.U) today announced that the
United States Bankruptcy Court has approved the Company's Plan of
Reorganization. AFT filed for reorganization under Chapter 11 in
October, 1993. The Company has been the dominant supplier of film
coloring services to the motion picture and television industries.
The Company's emergence from bankruptcy coincides with the
successful completion of a private placement of AFT common stock.
The proceeds will be used to pay a portion of past debts and restart
colorization operations. Under the Plan all secured and
administrative claims will be paid in full; unsecured claims will be
paid in full pursuant to a five-year note bearing interest at 7
percent. Existing shareholders will retain approximately 47 percent
of the equity of the reorganized company.
AFT intends to concentrate on the development and exploitation
of substantial domestic and international libraries of colorized
film and television product.
/CONTACT: John Karl, VP - Finance of American Film Technologies,
OLDWICK, N.J., Oct. 10, 1995 -- Effective
"under review" status of several insurance company subsidiaries of
Southwestern Life Corp. (Southwestern), the holding company, have
been revised in response to the announcement earlier today of the
execution of a definitive agreement to sell certain of those
Simultaneously, Southwestern announced the restoration of its
former name, I.C.H. Corporation (ICH)
and the filing of a voluntary
petition for relief under Chapter 11 of the U.S. Bankruptcy Code.
The ratings changes were made pursuant to an exhaustive review
of the entire operations of the holding company and its subsidiaries
over a period of several months in consultation with company
management, prospective partners, financial intermediaries, and
prominent regulators. The actions taken today by ICH were consistent
with the representations made by all parties in the course of the
The changes in the ratings of the ICH subsidiaries were as follows:
The "B+" (Very Good) ratings of Southwestern Life Insurance
Company, Dallas, Constitution Life Insurance Company, Louisville,
Ky., and Union Bankers Insurance Company, also of Dallas, which had
been under review with negative implications, remain under review,
but with developing implications as a result of the proposed
acquisition of these companies by Shinnecock Holdings, Inc. a
corporation jointly owned by The Shinnecock Group LLC, investment
partnerships managed by Kelso & Company, and an affiliate of Goldman
Marquette National Life Insurance Company, Louisville, Ky.,
another subsidiary of ICH, will be acquired by the same investor
group, but its Best's Rating of "NA-4" (Rating Procedure
Inapplicable) is not changed as a result of the proposal.
The change in the "under review" status from "negative" to
"developing" reflects the proposed acquisition, which, if
accomplished as planned, will provide these companies with better
capitalized and more stable ownership than they presently have.
Best believes that these life insurance companies are well
capitalized, have ample liquidity, maintain strong asset and
liability portfolios, and have viable marketing franchises in their
fields of operation. None of the insurance companies are involved
in the bankruptcy filing and all continue to operate without direct
supervision of their regulators.
A.M. Best has closely monitored these companies over the last
several months and noted that week-to-week overall surrenders
remained manageable, and new business growth remained reasonable,
despite the well publicized problems of the parent organization.
The realization of the potential for an enhanced outlook for
these companies depends, however, on the timely closing of the
proposed sale. If the holding company is unsuccessful in its efforts
to receive expeditious court approval of the disposition of the
companies in accordance with the proposed agreement or should any
action on the part of interested parties or an unforeseen event
reduce the likelihood of a successful closing of the sale, Best's
Ratings of Southwestern Life Insurance, Constitution Life and Union
Bankers Insurance would be downgraded into the "Vulnerable" rating
Some of the other insurance subsidiaries of ICH, which are not
part of the proposed sale mentioned above, also had their ratings
changed as a result of today's announcement.
Bankers Multiple Line Insurance Company, Chicago, and
Philadelphia American Life Insurance Company, Philadelphia, had
their Best's Ratings lowered from "B+" (Very Good) to "B"
(Adequate). Both ratings had been under review with negative
implications prior to the downgrade and remain so at their new
rating level. Two final insurance subsidiaries of ICH, Western
Pioneer Life Insurance Company, Louisville, and Modern American Life
Insurance Company, Springfield, Mo., had their Best's Financial
Performance Ratings affirmed at "4" (Average).
The ratings of Bankers Multiple Line and Philadelphia American
were downgraded and those of Western Pioneer and Modern American
affirmed in consideration of the bankruptcy filing of the holding
company and the consequent uncertainties about future operations.
These companies have maintained the confidence of both clients and
regulators over the past several months, and Best believes that all
four companies continue to have adequate capital and liquidity to
meet their obligations.
Moreover, these insurers continue to operate and have not been
placed under the direct supervision of their respective state
insurance departments, despite the bankruptcy filing of their
parent. It is expected that Bankers Multiple Line will continue to
support the operations of the other entities.
However, the future of the overall organization of which they
are a part is uncertain and its ongoing operation is rendered
questionable by the plan to dispose of its most dominant and
As it has throughout the recent history of difficulties at the
holding company, A.M. Best will maintain frequent and regular
contact with all significant participants in its ongoing review of
the companies' situations. As open issues are resolved, definitive
conclusions with respect to ratings under review, as well as any
rating adjustments, will be announced to the public.
/CONTACT: Tom Upton of A.M. Best Company, 908-439-2200, x5380/
MIAMI, Oct. 10, 1995 -- Reorganized href="chap11.eastern.html">Eastern Airlines
announced today that it had made a third distribution totaling $14.1
million to holders of general unsecured claims greater than
$100,000. Combined with two earlier distributions, the total
distribution to date exceeds $90 million. The Pension Benefit
Guaranty Corporation, the federal agency that guarantees the pension
benefits of former Eastern employees, received over $7 million of
the most recent distribution.
This third distribution represents 1.25 cents per dollar of the
allowed claims greater than $100,000. Combined with the initial
distributions totaling 6.75 cents per dollar, the total distribution
to date to large creditors amounts to 8.0 cents per dollar of the
allowed claim. This compares with the allowed claims under $100,000
(including all employee and consumer claims) which were paid 11
cents per dollar in February in accordance with the plan of
reorganization approved by the U.S. Bankruptcy Court.
Eastern plans to continue distributions to creditors with claims
over $100,000 throughout 1996. "The amount and timing of these
subsequent distributions will depend upon the actual recovery
experience and claims disposition process," said John J. Sicilian,
Chairman and Liquidating Agent. The remaining recoveries are
contingent upon the successful prosecution of several multimillion
dollar litigations, the sale of remaining assets and the passage of
certain proposed legislation.
/CONTACT: John J. Sicilian, Eastern Airlines, 305-873-3455/
CHICAGO, Oct. 10, 1995 -- Duff & Phelps Credit
(DCR) has placed 21 transactions on Rating Watch - Uncertain. The
Rating Watch status is an indication that there are changes in the
structure of the transaction. The original servicer on the 21 DLJ
transactions was Lomas Mortgage
USA. While Lomas Mortgage was the
active servicer of the mortgages, DLJ had acquired the servicing
rights for the transactions in light of Lomas' financial
difficulties. On Oct. 10, 1995, the Lomas Mortgage declared
bankruptcy. The affected public transactions are listed as follows:
DLJ 1993-Q3 DLJ 1994-Q1 DLJ 1995-Q1
DLJ 1993-Q6 DLJ 1994-Q7 DLJ 1995-Q3
DLJ 1993-Q9 DLJ 1994-Q8 DLJ 1995-Q5
DLJ 1993-Q13 DLJ 1994-Q9
DLJ 1993-Q15 DLJ 1994-Q12
DLJ 1993-Q16 DLJ 1994-Q13
DLJ 1993-Q18 DLJ 1994-Q14
DLJ 1993-QE5 DLJ 1994-Q16
DLJ 1993-QE11 DLJ 1994-15
/CONTACT: Michelle Lyn Russell, 312-368-2087, or Jennifer