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April 01, 1993|From Times Staff and Wire Reports

Investors Want Exec Life Junk-Bond Deal Voided: Trustees for bonds backed by Executive Life Insurance Co. have asked the Los Angeles Superior Court to undo the $3.25-billion sale of the insurer's junk bonds to a unit of the French bank Credit Lyonnais. The action follows a decision last week in which the 2nd District Court of Appeal set aside Insurance Commissioner John Garamendi's plan to sell the bankrupt insurer to a French-led investment group. The junk-bond sale to Altus Finance, completed last year, was a preliminary part of the deal. Those seeking to unwind the junk-bond sale are holders of municipal bonds backed by Executive Life guaranteed investment contracts. The junk bonds are believed to have appreciated in value by more than $1 billion since the sale.

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