Mortgage & Realty Trust Reports 4th-Quarter Loss

Mortgage & Realty Trust, a real estate investment trust reorganizing under federal bankruptcy laws, reported an $11.7-million loss for its fiscal fourth quarter because the company set aside $10 million for bad real estate loans.

The loss in the quarter that ended Sept. 30 contrasted with net income of $4.97 million a year earlier. Excluding the provision for bad loans, Mortgage & Realty’s earnings in the latest quarter were $3.09 million.

For its full fiscal year, Mortgage & Realty lost $10.4 million, contrasted with a $19.9-million profit the previous year. The latest full-year results included a $23.8-million provision for real estate losses.

The company filed under Chapter 11 of the federal bankruptcy laws April 12 because it defaulted on certain of its debts. Under Chapter 11, a company is shielded from creditors’ lawsuits while it works out a plan to pay its bills. Mortgage & Realty last month announced a tentative agreement with its creditors on a reorganization plan.