CRIIMI MAE and Morgan Stanley Reach Accord; Two Unsecured Creditors Committees Announce Agreement; One Committee States 'Preference' for CRIIMI MAE's Proposed Plan
ROCKVILLE, Md., Feb. 3 /PRNewswire/ -- CRIIMI MAE Inc. (``CMI' or the ``Company') (NYSE: CMM - news) and Morgan Stanley & Co. International Limited (``MSIL') have agreed to a final settlement of an adversary proceeding brought by CMI in the bankruptcy proceeding of CMI and its affiliates CRIIMI MAE Holdings II, L.P. and CRIIMI MAE Management, Inc. (collectively ``CRIIMI MAE').
The agreement calls for the sale of seven classes of subordinated commercial mortgage-backed securities (``CMBS') that were part of the financing of CMBS by MSIL, together with the related unrated bond. The agreement also calls for a final settlement of all adversary proceedings between CMI and MSIL. CRIIMI MAE has filed a motion with the Bankruptcy Court asking Judge Duncan W. Keir to approve the agreement. That motion is scheduled for hearing by the court on February 28, 2000.
In a separate development, the two unsecured creditors committees in the CRIIMI MAE reorganization cases reached an agreement which was announced at the commencement of a hearing yesterday. The hearing was scheduled for argument on the motion by the official creditors committee of CRIIMI MAE Management, Inc. (the ``Management Committee') to suspend consideration of the liquidation plan filed by the official committee of unsecured creditors of CRIIMI MAE Inc. (the ``Unsecured Committee') until there had been full consideration of CRIIMI MAE's reorganization plan (the ``Plan').
The agreement calls for the Management Committee to withdraw its motion and for the Unsecured Committee to amend its proposed plan of liquidation to provide for full payment of the allowed claims of unsecured creditors of CRIIMI MAE Management, Inc.
In conjunction with the agreement announced in court yesterday, the Management Committee also stated that it would not file its own proposed plan.
Although the Management Committee and Unsecured Committee have reached an agreement to include the claims of the unsecured creditors of CRIIMI MAE Management, Inc. in an amended Unsecured Committee's liquidation plan, Paul M. Nussbaum, the attorney for the Management Committee, stated during yesterday's hearing that his committee ``has a preference for the debtors' reorganization plan.'
The above discussion of the plans is qualified in its entirety by reference to the respective plans filed with the Bankruptcy Court. |
