
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, August 30, 1995                   TAG: 9508300069
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: MEGAN SCHNABEL STAFF WRITER
DATELINE:                                 LENGTH: Short

TANGLEWOOD MALL HAS NEW OWNER, DEBTS PAID

Tanglewood Mall has emerged from protection of U.S. Bankruptcy Court under new ownership and with all creditors paid in full, the shopping center's owners said Tuesday.

The mall, which in 1993 was purchased by KTI of North Carolina Inc., has been sold to Tanglewood Mall Associates as part of a reorganization that began when KTI filed for Chapter 11 bankruptcy in October 1994.

Both KTI and Tanglewood Mall Associates are owned by John Kane, a developer based in Raleigh, N.C. Tanglewood Mall Associates was set up specifically for the mall purchase, said Charles Lambert, a Roanoke public relations consultant representing Kane.

KTI filed for reorganization after Nomura Asset Capital Corp., a Japanese lender, gave KTI 15 days' notice that it wanted its loan on the mall paid in full. The loan had been a temporary measure to provide financing until a permanent mortgage could be negotiated. The mortgage on the mall now is held by Net Realty Holding Trust of Boston, Lambert said.

With the transaction, all creditors of KTI have been paid in full, Lambert said. The mall was never in financial trouble, he added.

Renovation and expansion plans have continued on schedule throughout bankruptcy proceedings. A 36,000-square-foot Stein Mart department store will open next month, and the mall's T.J. Maxx store is expanding. When the changes are complete, more than 95 percent of the mall will be occupied.

by CNB