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OLYMPIA & YORK MAIDEN LANE FINANCE CORP. ASKS BONDHOLDERS TO FORM COMMITTEE

 NEW YORK, July 16 /PRNewswire/ -- Olympia & York Maiden Lane Finance Corp. today met with holders of its non-recourse notes secured by 59 Maiden Lane, a New York City office building. The building has a net rentable area of approximately 1,050,000 square feet. The notes, in the outstanding principal amount of $200 million, bear interest at 10-3/8 percent and are due Dec. 31, 1995. Interest payments on the notes are current, although the trustee for the bondholders has asserted various technical defaults. Under the terms of the notes Olympia & York Maiden Lane Finance Corp. may be obligated to post over $240 million in liquid assets collateral on Dec. 31, 1993. Representatives of the company advised that they do not expect the company to meet this obligation and asked the bondholders to form a committee which would negotiate with the company to restructure the notes.
 The company advised that the requested terms of such a restructuring would include extension of the maturity of the notes, modification of the interest rate, accumulation of substantial cash reserves for future lease-up costs, and appropriate compensation to Olympia & York for management, leasing and asset management services.
 At the noteholders meeting, a representative of Olympia & York Maiden Lane Finance Corp. explained that approximately 89 percent of the building is leased through 1998, when a lease covering approximately 583,000 rsf expires. A second lease, covering 350,000 rsf, expires in 2002. Under current market conditions the cost of re-leasing the currently available space (including asbestos removal costs of up to $20 per square foot) plus space on which leases expire in 1999 or earlier would be substantial.
 The building's operating cash flow before payment of debt service, and assuming no additional space is leased, is estimated to be as follows (years ending Dec. 31, in millions):
 1993 1994 1995 1996 1997
 $25.4 $25.2 $30.9 $29.7 $29.7
 The annual interest payment on the notes is $20.75 million.
 Approximately $14 million is currently held by the trustee for the noteholders in the owner's operating account, which is estimated to increase to approximately $25 million by Dec. 31, 1993, before the payment of interest on the bonds. In addition to the mortgage on the 59 Maiden Lane building, the notes are further collateralized by approximately $7.3 million of credit support issued by third parties for the benefit of noteholders.
 At the meeting, representatives of the company advised that they had previously agreed with a group of noteholders that so long as the notes are not accelerated and no enforcement action or litigation is commenced in connection with the notes the company will not withdraw any cash from the operating account prior to Sept. 30 except to pay building operating expenses. The company has agreed in principle to extend that agreement through Nov. 1.
 -0- 7/16/93
 /NOTE TO EDITORS: Further information and material is available upon request/
 /CONTACT: Peter Rosenthal of Howard J. Rubenstein Associates, 212-489-6900, for Olympia & York Companies U.S.A./


CO: Olympia & York Maiden Lane Finance Corp. ST: New York IN: FIN SU:

GK-WL -- NY035 -- 2530 07/16/93 14:11 EDT
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Publication:PR Newswire
Date:Jul 16, 1993
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