Motion Filed in MCA Case to Disburse Monies to Certain Creditors

10 May 1999
Motion Filed in MCA Case to Disburse Monies to Certain Creditors
                  Several Other Developments Also Announced

    SOUTHFIELD, Mich., May 10 -- A motion has been filed in U.S.
Bankruptcy court to allow the Conservator of MCA Financial Corp. to disburse
$6.5 million to certain MCA creditors.  B. N. Bahadur, Conservator of MCA and
CEO of BBK, Ltd., a leading turnaround and revitalization company, made the
announcement today.
    These funds represent monies collected by MCA between January 29, 1999,
through March 31, 1999.  If the motion is approved, these funds will be
disbursed to governmental agencies, including FHLMC, FHMA, GNMA, MSHDA, Chase
Bank and other secured creditors.  No hearing date has yet been set to
determine when these monies will be disbursed.  Monies collected beginning
April 1, 1999, would be disbursed as they come in through ordinary business
processes.
    Bahadur announced several other MCA developments, including:

    * A motion was filed to approve the sale of certain residential properties
and related mortgage notes.  This portfolio has approximately 280 properties
owned by MCA affiliates and Detroit Revitalization, Inc.  If the motion is
approved, these properties are scheduled to be auctioned on June 1, 1999;
    * Pursuant to an order of the bankruptcy court, MCA has transferred MSHDA
loans to MSHDA's designated servicer.  This includes approximately 600 loans
valued at approximately $30 million.
    * A plan is in place to vacate MCA's Southfield, Mich., building by
May 31, 1999; and,
    * The "Section 341" meeting on April 28 to address creditor's issues
was constructive and "lightly attended" by creditors;

    On January 28, 1999, Bahadur was named Conservator of MCA by Patrick
McQueen, Financial Institutions Bureau Commissioner for the State of Michigan.
The order allows the Conservator to do "all things necessary" in the best
interests of the general public to oversee and manage the assets of
approximately 11,000 mortgages and land contracts valued at $536 million.
    A toll-free phoneline has been established to provide up-to-date
information on the MCA situation.  The number for the phoneline is
1-800-688-4398.  It operates during regular business hours from 9 a.m. to
5 p.m. EDT.  The Internet web site includes copies of the Financial
Institutions Bureau order naming Bahadur as Conservator, as well as previously
released information.  The address of the site is http://www.aeg1.com/bbk/mca.htm.
    B. N. Bahadur, CEO of BBK and a Certified Turnaround Professional, is a
nationally recognized management, financial and turnaround consultant.  He is
a member of the Turnaround Management Association, the National Association of
Bankruptcy Trustees, American Bankruptcy Institute and the National
Association of Credit Management.
    BBK offers a complete range of corporate turnaround and revitalization
services for companies in all industries.  The company has provided turnaround
management and revitalization services for more than 500 companies throughout
North America, including the United States, Canada and Mexico.