Mortgage & Realty Trust Fails to Pay Note Interest
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Mortgage & Realty Trust, a financially shaky real estate investment trust with dual headquarters in Burbank and Elkin, Pa., didn’t pay interest Dec. 31 on $290 million of its notes due in 1995.
The trust earlier said it didn’t plan to make the payment.
Mortgage & Realty last week said the principal holders of its notes had rejected the company’s proposal for restructuring the debt. Discussions between the trust and the note holders are continuing, Mortgage & Realty said.
Last month, the trust said it would continue operating while attempting to work out a restructuring agreement. However, if that is impossible, Mortgage & Realty said the trust may seek relief under Chapter 11 of federal bankruptcy laws.
Filing Chapter 11 protects a company from its creditors while it seeks to reorganize its finances.
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