Cala Corporation (fka CCAA)

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Bankruptcy Magistrate Magda Cristiano of Naples, Italy has accepted Cala Corporation's bid to acquire the previously announced twenty three floor office complex in the heart of the financial district of Naples. Judge Cristiano gave Cala Corporation until October 4, 2000 to conclude negotiations with the creditors of CE.DI.NA. srl., the current owners of the property. The building's purchase price will not exceed $22 million. The complex has a reported occupancy rate of nearly 99% and generates approximately $2 million in gross annual revenue. Mr. Cala, in Naples to assist with the negotiation, stated that the appraisal value of the property far exceeds the purchase price and Cala Corporation expects favorable debt restructuring with current creditors. As stated in an earlier release, Mr. Cala plans to finance the building's purchase through present revenues and the appraised value of the complex. Annual mortgage and tax payments on the building are estimated at less than $1 million.