Real Estate Trust’s Debt Will Be Restructured

Mortgage & Realty Trust, apparently avoiding a return trip to U. S. Bankruptcy Court, said holders of $329 million of the company’s debt have agreed to restructure that debt.

The real estate investment trust, which has executive offices in Burbank and Elkins Park, Pa., has been struggling because of the weak real estate market and missed a $37.8-million principal payment on the debt that was due June 30.

Mortgage & Realty, which emerged from Chapter 11 in February, 1991, had said it might have to return to bankruptcy court if the debt restructuring was not approved by the debt holders.

The approved restructuring plan, among other factors, allows the trust to defer certain additional principal payments on the debt, places a cap on the debt’s interest rate and requires the trust to reduce its non-performing assets.