Was BCM behind Dynex, the troubled lender? Will be interesting whether Dynex will finally fail on the credit burden. That won't be the first time that things go in reverse....
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Wednesday May 24, 2:28 pm Eastern Time
Company Press Release
SOURCE: Basic Capital Management
Texas Court Enters TRO Against Dynex
DALLAS, May 24, 2000 (PRIMEZONE) -- Basic Capital Management, Inc. announced on Wednesday that a temporary restraining order has been obtained against Dynex Capital Inc. (NYSE:DX - news) and its subsidiary, Dynex Commerical, Inc., restraining the Glen Allen, Va.-based lender from selling or transferring loans made to Basic Capital Management, American Realty Trust (NYSE: ARB - news), Transcontinental Realty Investors, Inc. (NYSE: TCI - news) and affiliated companies. The restraining order was entered by the Dallas County Court at Law on May 23.
In the lawsuit, Basic Capital Management and its affiliated companies allege Dynex Commercial breached a $160 million lending commitment and related individual loan agreements. In addition to monetary damages, the lawsuit filed in Dallas County Court, seeks to off-set Basic Capital Management's and affiliated companies' indebtedness to Dynex Commercial on multiple individual loans. The TRO was entered to preserve the off-set remedy. According to court papers, the need for the TRO was triggered by Dynex's public announcements of its intent to sell loans due to its financial condition.
Basic Capital Management, Inc. is a Dallas-based advisory company to a number of publicly traded real estate entities, including American Realty Trust, Inc. and Transcontinental Realty Investors, Inc. For more information about BCM and its affiliated companies, go to the company Web site at www.bcm-inc.com .
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