High River Affiliate to Buy Reliance Group Bonds

December 19, 2000

Affiliates of High River LP plan to buy about $61 million of bonds issued by Reliance Group Holdings. The affiliates are making a tender offer in order to block any debt restructuring plan it considers unacceptable should Reliance, which is controlled by former corporate raider Saul Steinberg, file for bankruptcy protection.

High River plans to buy some of the $291.7 million of 9 percent senior notes that matured Nov. 15 at 17 cents on the dollar, more than double the six to eight cents on the dollar at which it said the notes have traded during December. Reliance failed to make the principal payment on these notes on Nov. 15.

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