BANKING & FINANCE - Aug. 6, 1993
From Times Staff and Wire Reports
Glenfed Revises Recapitalization: Stockholders in Glenfed Inc., the parent of troubled Glendale Federal Bank, will probably suffer an additional 10% loss in value of their already battered common shares as a result of a revised recapitalization plan. Glenfed management said the revision was necessary because of the “recent deterioration” of the capital markets caused by worse-than-expected financial results reported by some California thrifts and banks. On Aug. 17, shareholders will vote on the previously announced plan to raise $425 million capital with a debt-for-equity swap, sale of new common stock and purchase rights, and the reclassification of preferred shares. Severe dilution of prior common stockholders’ investment will result.
