Mego Mortgage Corp. said it would recapitalize with a $40 million to $60 million private placement of equity securities at a price between $1.50 to $2.

The company said it has curtailed loan originations due to "pressing cash requirements." It is also proposing to exchange new subordinated notes and convertible preferred stock for its $80 million of 12.5% senior subordinated notes that are due in 2001.

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