Printer Friendly

DICKSTEIN & CO. TO COMMENCE LAWSUIT AGAINST OLYMPIA & YORK

 NEW YORK, Dec. 29 /PRNewswire/ -- Dickstein & Co., L.P. and Third Avenue Value Fund, Inc. who together own in excess of $16 million of the outstanding 10-3/8 percent secured notes due 1995 of Olympia & York Maiden Lane Finance Corp., announced today that they have commenced a lawsuit against Olympia & York Maiden Lane Company, Olympia & York Maiden Lane Finance Corp. and certain of their affiliates relating to the 44-story office building complex located at 59 Maiden Lane, New York City. There are $200 million principal amount of the 10-3/8 percent notes outstanding which are secured by a mortgage of like amount on the property.
 The complaint alleges that Olympia & York Maiden Lane Company, which is the owner of the office building, is insolvent because the $200 million mortgage encumbering 59 Maiden Lane is far in excess of its fair market value. As a result of this insolvency, the co-plaintiffs believe that the approximately $8-9 million of annual net cash flow from building operations on the notes should be preserved solely for the benefit of the noteholders and should not, as historically has been the case, be distributed to the Olympia & York affiliates which own the building. The co-plaintiffs allege in their complaint that any distribution to property owners, in light of the company's insolvency, should be characterized either as a fraudulent conveyance or an illegal distribution.
 Mark Dickstein, managing partner of Dickstein & Co., has stated that "Since it is readily apparent that Olympia & York Maiden Lane Company is insolvent, it is only prudent for the bondholders to take the necessary steps to prevent the continued unlawful distribution of funds to the company's affiliates."
 In addition to the fraudulent conveyance claims, the complaint seeks the appointment of a receiver for the building and alleges that the individual directors of the various Olympia & York affiliates which own the property breached their fiduciary duties to the creditors by authorizing the distribution of excess cash from 59 Maiden Lane when the company was insolvent.
 Mr. Dickstein further stated that "The plaintiffs believe that as events develop the number of bondholders joining the suit will increase significantly."
 Dickstein & Co., L.P. is an investment limited partnership specializing in the securities of financially distressed companies.
 Third Avenue Value Fund, Inc. is an open-end. non-diversified investment company with approximately $37 million in total assets.
 -0- 12/29/92
 /CONTACT: Alan S. Cooper, 212-744-8877, or Jeanne Taddonio, 212-888-5222, both for Dickstein & Co./


CO: Dickstein & Co.; Olympia & York ST: New York IN: FIN SU:

TS-SH -- NY020 -- 0368 12/29/92 14:24 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:Dec 29, 1992
Words:425
Previous Article:EURONEWS: EUROPE'S FIRST MULTILINGUAL SATELLITE TV NEWS CHANNEL
Next Article:FIRST MIDWEST BANCORP ELECTS NEW BOARD MEMBER
Topics:


Related Articles
OLYMPIA AND YORK FIRST CANADIAN PLACE IS ADVISED THAT OLYMPIA AND YORK DEVELOPMENTS WILL CONTINUE DISCUSSIONS WITH ITS BANKERS
BATTERY PARK HOLDINGS FILES SUIT AGAINST OLYMPIA & YORK AFFILIATES
BATTERY PARK HOLDINGS AND OLYMPIA & YORK REACH STANDSTILL
NOTICE OF DEFAULT DELIVERED TO OLYMPIA & YORK MAIDEN LANE UNIT; BONDHOLDERS DISCONTINUE LAWSUIT
INTERDIGITAL TECHNOLOGY RESPONDS TO ERICSSON LAWSUIT
DICKSTEIN PARTNERS MAILS CONSENT MATERIALS TO HILLS STORES STOCKHOLDERS TO ELECT FOUR DIRECTORS COMMITTED TO A SUBSTANTIAL BUYBACK PROGRAM
DICKSTEIN PARTNERS ANNOUNCES NEW EARLY CONSENT DUE DATE IN HILLS STORES SOLICITATION
HILLS REJECTS DICKSTEIN SETTLEMENT PROPOSAL
PURITAN-BENNETT SHAREHOLDER PROPOSES SALE OF COMPANY
Class Action Commenced By Kaufman Malchman Kirby & Squire, LLP

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