Meruelo Maddux' Disclosure Statement Approved By Bankruptcy Court

LOS ANGELES, Aug. 10 /PRNewswire/ -- Meruelo Maddux Properties, Inc., today announced that the presiding judge over its bankruptcy proceeding, the Honorable Kathleen Thompson, has approved the company's Disclosure Statement for its reorganization.  Of particular note, the company's reorganization plan includes a 100% payment to all creditors of the company.

"Meruelo Maddux Properties is continuing on its path to completing its bankruptcy reorganization," said Richard Meruelo, Chairman and Chief Executive Officer.  "We have maintained all along that we would remain in Los Angeles and assertively continue our development and investment efforts.  The company's Disclosure Statement and plan of reorganization underscores that commitment."

Based on the schedule put forth in its Disclosure Statement, and barring any further delays, Meruelo Maddux believes that its plan will be confirmed following a vote by creditors and shareholders later this Fall, which will allow the company to exit bankruptcy before the end of the year.

During the bankruptcy process, the company has sold approximately $120 million of property, paid off approximately $90 million in debt, and reached consensual agreements with lenders to extend the maturities on over $100 million in debt.

In addition to the reorganization plan including a 100% payment to all creditors of the company, approval of Meruelo Maddux' reorganization plan would position the company well for its continued investment in the City of Los Angeles.

SOURCE Meruelo Maddux Properties, Inc.