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O&Y COMPANIES (U.S.A.) MEETS WITH ITS BANKERS TO ASK COOPERATION AND DESCRIBE PLANS GOING FORWARD

O&Y COMPANIES (U.S.A.) MEETS WITH ITS BANKERS TO ASK COOPERATION AND
    DESCRIBE PLANS GOING FORWARD
    NEW YORK, Sept. 30 /PRNewswire/ -- Olympia & York Companies (USA) today presented a plan that would result in its maintaining its leadership position as an owner and manager of commercial properties and returning to positive cash flow within the next 36 months.  The company asked its bankers to cooperate in the company's recovery by deferring principal payments on its obligations for approximately five years.
    In a meeting at One Liberty Plaza in Manhattan, the company provided creditors with detailed financial information and submitted a business plan which describes a restructured company which will own and manage for itself and others a core of commercial properties concentrated in New York City.  If the plan is successfully implemented, the company said, its properties by 1995 will generate approximately $80 million of annual cash flow after operating expenses, leasing costs, debt service and partnership distributions.
    The company said its three major goals are to restore financial health by rebuilding cash flow and generating new sources of capital through refinancing and/or equity infusion; to restructure secured debt and negotiate settlements with unsecured and undersecured claimants; and to build on the company's strength and capabilities in the real estate industry.
    O&Y cited a number of events to illustrate its recent progress, including an agreement in principal for the disposition of 55 Water Street, a contract for the sale of 320 Park Avenue and an extended payment schedule for the payment of New York City taxes.  The company said it has sold and is continuing to sell a number of non-strategic assets, initiated discussions with secured lenders to restructure debt on key properties and reduced company expenses.
    Under the company's cash management system, the company said, all excess cash received is earmarked to support operations and deferred obligations in the United States.  No money is being paid to Olympia & York Developments Ltd. or any other non-O&Y (US) affiliate.
    The company, which asked all creditors to defer principal payments for a period of approximately five years, said that the cash management system provides for the timely payments of each property's expenses. Secured lenders will be asked at maturity to extend existing loans.
    O&Y said it would work with its creditors to achieve by the end of the year a "consensual long-term restructuring" of its U.S. debt, including resolution of existing unsecured debt as well as future deficiency claims related to certain property dispositions, and an understanding with secured lenders for the extension of their loans and a reasonable repayment schedule.
    -0-             09/30/92
    CONTACT:  Peter Rosenthal, 212-489-6900, of Howard J. Rubenstein Associates, Inc., for Olympia & York Companies (U.S.A.) CO:  OLYMPIA & YORK COMPANIES (USA) ST:  NY -- NY052 -- X573  09/30/92
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Sep 30, 1992
Words:468
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