Federal Bankruptcy Court Orders Meruelo Maddux Properties, Inc. and Its CEO Richard Meruelo to Retract the 'Substantially Inaccurate' September 9, 2010 Press Release

LOS ANGELES, Sept. 22 /PRNewswire/ -- On September 15, 2010, Judge Kathleen Thompson of the United States Bankruptcy Court (Central District of California) ordered Meruelo Maddux Properties, Inc. ("MMPI") and Richard Meruelo, its Chairman and Chief Executive Officer who is quoted in the release, to retract the September 9, 2010 press release entitled "East West Bank Hostile Takeover Plan of Meruelo Maddux Properties Rebuffed by Bankruptcy Court" in its entirety.

The Bankruptcy Court found that the press release violated Section 1125 of the United States Bankruptcy Code as an improper plan solicitation and contained substantial inaccuracies. MMPI and Richard Meruelo, MMPI's Chairman and Chief Executive Officer who was quoted in the press release, hereby retract the press release in its entirety in compliance with the Bankruptcy Court's decision.

The Bankruptcy Court is presently considering three proposed plans of reorganization for MMPI. Upon approval by the Court, disclosure statements containing complete details of the plans will be distributed to parties in interest. Parties should carefully read the disclosure statements and the plans in their entirety prior to voting on the plans. The deadline for parties to submit their votes has not yet been set by the Bankruptcy Court, but will be identified in the disclosure statements and papers distributed with the disclosure statements. Parties should rely upon the approved disclosure statements when considering the plans.

Meruelo Maddux Properties, Inc. is a Los Angeles based real estate investment and development company which filed bankruptcy in March 2009.

SOURCE Meruelo Maddux Properties, Inc.