CRIIMI MAE Finalizing Financing Terms With Merrill Lynch Mortgage Capital And German American Capital Corp.
Receives Extension From Court To File Disclosure Statement
ROCKVILLE, Md., Dec. 16 /PRNewswire/ -- Judge Duncan W. Keir of the United States Bankruptcy Court, District of Maryland, Greenbelt Division, today granted CRIIMI MAE Inc. (NYSE: CMM) and its affiliates CRIIMI MAE Holdings II, L.P. and CRIIMI MAE Management, Inc. a one week extension through December 23, 1999 to file their proposed Disclosure Statement with the Bankruptcy Court.
CRIIMI MAE had requested the brief extension in order to finalize the terms of a key component of its contemplated Amended Joint Plan of Reorganization (the "Amended Plan") -- recapitalization financing from Merrill Lynch Mortgage Capital Inc. ("Merrill Lynch") and German American Capital Corporation ("GACC"), two of CRIIMI MAE'S largest secured creditors.
During a hearing today, CRIIMI MAE's extension request received the support of Merrill Lynch, GACC and the Official Committee of Equity Security Holders. None of the parties in interest objected to the extension request.
Under the Amended Plan now being finalized by CRIIMI MAE, Merrill Lynch and GACC would remain secured creditors and would provide a significant portion of CRIIMI MAE'S recapitalization financing. Additional recapitalization financing would be obtained from the sale of the same commercial mortgage-backed securities ("CMBS") that were to be sold pursuant to the Joint Plan of Reorganization filed by CRIIMI MAE and its affiliates with the Bankruptcy Court on September 22, 1999.
The Amended Plan being finalized does not require an equity investment as contemplated by the Joint Plan filed in September 1999. Nonetheless, the Amended Plan would allow for an investment of equity, and CRIIMI MAE may continue to seek new equity from one or more investors.
The Bankruptcy Court also granted CRIIMI MAE's request to withdraw its pending motion to approve the remaining bidding protection provisions in the Stock Purchase Agreement entered into in September 1999. |
