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GlenFed files plan to raise cash

S&L giant GlenFed Inc. said Monday it hopes to avoid a government takeover by finding new investors while persuading holders of its existing securities to invest another $150-million.

The plan released by the parent of Glendale Federal Bank would raise $425-million _ including $275-million from unidentified new investors _ meeting Office of Thrift Supervision orders to increase capital by about $400-million. However, analysts expressed doubt about aspects of the plan.

The proposal gives GlenFed breathing room from seizure by the OTS, which extended a June 30 deadline for recapitalization.

The plan will be put to a vote of common stockholders on Aug. 3.

In Florida, Glendale is the fourth-largest thrift operation with 60 branches and $3.8-billion in deposits.

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