Printer Friendly

BATTERY PARK HOLDINGS FILES SUIT AGAINST OLYMPIA & YORK AFFILIATES

 NEW YORK, Nov. 20 ~PRNewswire~ -- Battery Park Holdings Inc., (BPHI) which owns approximately 35 per cent of the World Financial Center (WFC) Partnerships, the owners of Towers A, B, and D in the prestigious Manhattan office and retail development, today filed a suit in the Supreme Court of the State of New York, County of New York on its own behalf and on behalf of the Partnerships against the properties' managing partner and related companies.
 The defendants in the suit include Olympia & York (U.S.) Development Company, L.P., Olympia & York (U.S.) Financial Company, and WFC Tower D Company.
 ''This lawsuit seeks to ensure that the cash flows generated by the World Financial Center are used for the purposes of the World Financial Center,'' said Mr. J. Richard Shiff, chairman, Battery Park Holdings.
 ''There are essentially three remedies being sought,'' he continued. ''First, we have sought the appointment of a receiver for the World Financial Center assets to ensure that the cash flows generated by these assets are not misappropriated to other uses of Olympia & York that are unrelated to the World Financial Center.
 Second, BPHI is seeking to recover approximately US$8.5 million, which is its share of the excess cash flows from the project not yet remitted to BPHI. Third, on behalf of the WFC Partnerships, BPHI is seeking to ensure that approximately US$75.4 million of capital that O&Y entities have improperly withdrawn is either recovered or charged against O&Y's equity interest in the WFC Partnerships.
 In its suit, BPHI seeks preliminary and permanent injunctive relief prohibiting further diversions of the WFC Partnership assets to Olympia & York (U.S.) affiliates, and ordering that the revenues of those partnerships be maintained in segregated accounts that can be used only for partnership purposes. BPHI asks for complete and unfettered access to the financial records of WFC Partnerships and imposition of a constructive trust upon Olympia & York (U.S.) Development Company, Olympia & York (U.S.) Financial Company, and O&Y Tower D Holding Company I. BPHI also seeks to hold the defendants liable for any damages and costs it has suffered or that have been suffered by the Tower B Holding Company.
 BPHI is 50 per cent owned indirectly by Carena Developments Ltd. of Toronto, Ontario and 50 per cent owned by 917024 Ontario Inc., a company controlled by J. Richard Shiff, a Toronto real estate investor.
 Regarding the decision to file the suit, Mr. Shiff said, ''It is unfortunate that we have had to resort to this action. We have held discussions for months regarding the matters raised in the suit and were repeatedly assured that the distributions would be made, the monies repaid, and the Partnerships' revenues properly segregated. None of these commitments has been met and we have concluded that we have no other course of action left to protect our interests and those of the Partnerships.''
 -0- 11~20~92
 ~CONTACT: Edwin B. Nordholm of Battery Park Holdings Inc., 416-369-2311~


CO: Battery Park Holdings, Inc. ST: New York IN: FIN SU:

TM -- NY057 -- 3574 11~20~92 17:22 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 20, 1992
Words:519
Previous Article:SITHE/INDEPENDENCE FUNDING CORP. SECURED NOTES RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:LTV ANNOUNCES ADJUSTMENT OF SETTLEMENT AGREEMENT WITH PENSION BENEFIT GUARANTY
Topics:


Related Articles
BATTERY PARK HOLDINGS AND OLYMPIA & YORK REACH STANDSTILL
DICKSTEIN & CO. TO COMMENCE LAWSUIT AGAINST OLYMPIA & YORK
STATEMENT ON BEHALF OF THE NOTEHOLDERS OF THE MORTGAGE DEBT OF TOWER B OF THE WORLD FINANCIAL CENTER
TISHMAN SPEYER, APOLLO AND OYDL PETITION BANKRUPTCY COURT TO END EXCLUSIVITY PERIOD FOR DEBTOR
AD HOC COMMITTEE OF THE OLYMPIA & YORK MAIDEN LANE NOTEHOLDERS RELEASES INFORMATION
Highwoods Properties And Gene Anderson Sued By Anderson's Partner
Rayovac Files Patent Infringement Suit Against Duracell.
Energizer Announces Actions Against Trademark Infringement and Gray Goods Violations.
Battery Park turf war erupting over 'Site 26'.
Appraise this.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters