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O&Y buys some time with $20M loan.

Olympia & York last week managed to keep itself out of bankruptcy court by securing a loan of almost $20 million.

The loan should buy some time for the world's largest commercial real estate developer who is trying to work out a deal with lenders. But the company's cash is expected to run out in the next few weeks.

The identities of the banks who arranged the emergency loan were not revealed, but they are believed to be units of some of those that are most affected by O&Y's financial troubles -- Canadian Imperial Bank of Commerce, Citicorp and Hongkong & Shanghai Banking Corp.

The Canadian-based O&Y also raised $55 million from the April 10 sale of 7.1 million shares of its shares in the Trilon Financial Corp., according to the New York Times. The Reichmans, O&Y's controlling family, still owns 1.6 million shares of the company controlled by the Edper group, another of Canada's major family business groups.

Experts say other asset sales are not likely because they are being used as collateral on certain loans. The company, has, however, been looking for a buyer for 41 percent of its stake in Home Oil Co.

Part of the company's discussions with banks is whether or not the institution's want to supply the additional $175 million needed to complete O&Y's Canary Wharf project in London. If left unfinished, tenants would be able to break leases.

In New York, according to the Wall Street Journal, O&Y recently missed a $62 million interest payment on World Financial Center Tower B and a $100 principal payment on 1 Liberty Plaza.
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Title Annotation:Olympia & York kept out of bankruptcy
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Apr 29, 1992
Words:271
Previous Article:Ex-shoe building lands investment banking tenant.
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