First Executive Restructures Debt, Halts Dividends: The...
From Times Staff and Wire reports
First Executive Restructures Debt, Halts Dividends: The Los Angeles-based life insurance company, battered by souring investments in junk bonds, said it has reached a preliminary agreement to restructure $275 million of its senior debt. The agreement requires the company to pay its banks and some other creditors $30 million in cash and pledge “certain assets” as collateral on new loans that will come due in 1996, 1997 and 1998. Some debt will also be canceled in exchange for real estate held by First Executive. However, the deal prohibits the company from paying about $11 million in quarterly cash dividends on its preferred shares.
