RIGHTSTAR FORECLOSURE RESOLUTION AGREEMENT ENABLES DEATH CARE ASSETS AUCTION
Exhibit
99.1
ENABLES
DEATH CARE ASSETS AUCTION
Las
Vegas, NV, May 9, 2007 The State of Hawaii, Vestin Realty Mortgage I, Inc.
(Nasdaq:VRTA),
Vestin
Realty Mortgage II, Inc. (Nasdaq:VRTB), Vestin Mortgage, Inc. (collectively
reference herein as Vestin) and Comerica Incorporated (NYSE:CMA) today announced
that the assets of the embattled RightStar Corporations in Hawaii will be
sold
to the highest bidder at public auction pending Hawaii Circuit Court approval
of
the foreclosure resolution agreement. The assets to be sold include RightStar’s
13 cemeteries and funeral homes previously owned by The Xxxxxx Group, Inc.
The
assets account for nearly 50 percent of the insular Hawaii death care market.
The cemeteries and funeral homes have remained going concerns under the aegis
of
the Circuit Court’s Receiver following loan defaults and trust fund deficits
incurred by RightStar.
The
resolution agreement provides that the proceeds of the foreclosure sale will
be
allocated to fund the trusts statutory minimum balances, and to Vestin. The
State of Hawaii, Vestin and Comerica have pledged to cooperate to recover
additional amounts owed to the trusts and the creditors from others, while
mutually releasing each other and RightStar from claims.
The
resolution also calls for the continuity of Comerica’s service as trustee, as
Comerica has been praised for stabilizing and rebuilding the trusts after
they
stepped in to replace the trustees initially appointed by
RightStar.
This
resolution offers a unique opportunity for the new operator of these cemeteries
and funeral homes to establish itself as the industry leader of a valuable
and
growing market segment boasting a healthy pre-need constituency.
Further
details regarding the availability of due diligence materials, time and place
of
sale, and bidder pre-qualification will be forthcoming.
Vestin
Realty Mortgage I, Inc. is a real estate investment trust (“REIT”) that invests
in short-term secured loans to commercial borrowers. As of March 31, 2007,
Vestin Realty Mortgage I, Inc. had assets of over $65 million. Vestin Realty
Mortgage I, Inc. is managed by Vestin Mortgage, Inc., which is a subsidiary
of
Vestin Group, Inc., a well-known asset management, real estate lending and
financial service company. Since 1995, Vestin Mortgage Inc.’s mortgage
activities have facilitated more than $2.0 billion in lending
transactions.
About
Vestin Realty Mortgage II, Inc.
Vestin
Realty Mortgage II, Inc. is a real estate investment trust (“REIT”) that invests
in short-term secured loans to commercial borrowers. As of March 31, 2007,
Vestin Realty Mortgage II, Inc. had assets of over $294 million. Vestin Realty
Mortgage II, Inc. is managed by Vestin Mortgage, Inc., which is a subsidiary
of
Vestin Group, Inc., a well-known asset management, real estate lending and
financial service company. Since 1995, Vestin Mortgage Inc.’s mortgage
activities have facilitated more than $2.0 billion in lending
transactions.
About
Vestin Group
Vestin
Group, Inc. is engaged in asset management, real estate lending, and other
financial services. Its subsidiary, Vestin Mortgage, has facilitated more
than
$2.0 billion in lending transactions since 1995. Vestin Mortgage manages
two
public traded REITS, Vestin Realty Mortgage I, Inc. and Vestin Realty Mortgage
II, Inc., and Vestin Fund III, LLC a mortgage fund.
About
Comerica
Comerica
Incorporated (NYSE:CMA) is a financial service company headquartered in Detroit.
Comerica's approximately 11,000 employees focus on relationships, and helping
people and businesses be successful. Comerica Bank locations can be found
in
Michigan, California, Texas, and Florida, with select businesses operating
in
several other states. Munder Capital Management and Comerica Securities are
investment services affiliates. Comerica reported total assets of $58 billion
at
December 31, 2006
Forward-Looking
Statements
Certain
information discussed in this press release may constitute forward-looking
statements within the Private Securities Litigation Reform Act of 1995 and
the
federal securities laws. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions at the time made, it can give no assurance that its expectations
will be achieved. Readers are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements are inherently subject
to
unpredictable and unanticipated risks, trends and uncertainties, such as
the
Company’s potential inability to accurately forecast its operating results; the
Company’s potential inability to achieve profitability or generate positive cash
flow; the availability of financing; defaults on outstanding loans; unexpected
difficulties encountered in pursuing our remedies if a loan is in default;
a
decline in the value of collateral securing our loans and other risks associated
with the Company’s business. The Company assumes no obligation to update or
supplement forward-looking statements that become untrue because of subsequent
events.
For
more
information
Contact:
|
Vestin
Mortgage, Inc.
|
|
Xxxxx
Xxxxxxxx
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|
000-000-0000
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