Glenfed Inc. said Thursday that it has cleared a major hurdle in the planned recapitalization of its troubled thrift unit.

The holding company's debenture holders and preferred stockholders of Glendale Federal Bank agreed tentatively to a restructuring of their securities.

Though the recapitalization will dilute their holdings, the groups were convinced by the thrift that their capital infusion is better than the alternative.

Peril at the Door

Regulators have threatened to take action that could lead to Glendale's demise if the California-based thrift fails to raise enough capital by June 30.

The Office of Thrift Supervision is requiring Glendale to increase its core capital ratio to 5% by June 30, from 2.76%, and its risk-based capital level to 10% from 5.73%.

Separate steering committees of preferred stockholders, who hold $140 million in 12% noncumulative perpetual preferred stock. and bondholders, who hold $60 million in 73/4% convertible subordinated debentures due in 2001, agreed to restructure their holdings.

"The endorsement of the restructuring by the two steering committees provides a significant boost to our prospects for successfully completing the recapitalization," said Stephen J. Trafton, chairman and chief executive officer of both Glendale and Glenfed.

Mr. Trafton said in an interview last month that the recapitalization will involve several components that will occur simultaneously.

Seeking Equity Capital

In addition to restructuring the thrift's preferred stock and holding company debt, he said, it will go to the market for equity capital.

Sources on Wall Street and in Washington said part of the equity infusion would involve a rights offering, but Glenfed did not mention equity in its announcement on Thursday.

A Glenfed spokesman said securities laws prevented him from releasing more details of the restructuring agreement until a broader plan is announced within the next few weeks.

However, Glenfed said it believes regulators are likely to push back the June 30 deadline to accommodate the capital plan that the thrift is demonstrating.

When the final recapitalization is announced, holders of common stock in Glenfed Inc. would be required to vote unanimously for the transaction.

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