OTHER NEWS - Aug. 11, 1992

Presley Reports a Loss: Presley Cos. reported a $14.3-million loss for the second quarter and said its short-term borrowing ability is in question after it reduced the value of certain assets by $26 million. The writedown of land acquired at the peak of the real estate market in 1989 cut the book value of the Newport Beach home builder’s inventory by 6%. The loss, equal to 77 cents a share, came despite improved sales and $2.1-million profit on operations. President Wade H. Cable said that the company believes that its bankers may appraise its real estate holdings lower in the future and that “lower appraised value could have a significant impact on the borrowing capacity and liquidity of the company.” On paper, Presley’s quarterly performance translates into a $6.1-million loss for its largest shareholder, Newport Beach builder William Lyon.