Mortgage & Realty Trust Might Not Pay June Debt
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Mortgage & Realty Trust, a real estate investment trust with executive offices in Burbank and Elkins Park, Pa., said it does not expect to be able to make scheduled June 30 debt payments totaling $44.4 million.
As a result, the company said it has begun asking certain of its creditors to restructure terms of the debt, whose principal amount totals $329 million. The June 30 payment was to include $37.8 million in principal and $6.6 million in interest.
The announcement was a setback for Mortgage & Realty, which emerged from reorganization under Chapter 11 of the U. S. bankruptcy laws in February, 1991. The trust has been battered in recent years by the downturn in the commercial real estate market.
Mortgage & Realty said missing the June 30 payments would constitute a default under terms of its debt, and would entitle holders of the debt to begin foreclosure proceedings.
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