X0202 4 2005-06-20 1 0000037008 FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS FUR 0001218199 KING STREET CAPITAL MGMT LLC 65 EAST 55TH STREET 30TH FLOOR NEW YORK NY 10022 0 0 1 0 B-1 Cumulative Convertible Redeemable Preferred Shares 2005-06-20 4 P 0 64000 25.00 A 4952889 I King Street Capital, L.P. Outstanding shares must be redeemed not later than the seventh anniversary of the original issuance of the B-1 Cumulative Convertible Redeemable Preferred Shares. (1) Each of the reporting person and the joint filers disclaims beneficial ownership of the reported securities except to the extent of his or its pecuniary interest therein, and this report shall not be deemed an admission that the reporting person or any joint filer is the beneficial owner of the securities for purposes of Section 16 of the Securities Exchange Act of 1934, as amended or for any other purpose. (2) These securities are owned by King Street Capital, L.P. King Street Capital Management, L.L.C. has been delegated investment advisory responsibilities by King Street Advisors, L.L.C., the General Partner of King Street Capital, L.P. O. Francis Biondi, Jr. and Brian Higgins are the Managing Principals of King Street Capital Management, L.L.C. King Street Capital Management, L.L.C.; By: Brian J. Higgins, Managing Principal /s/ Brian J. Higgins 2005-07-29