CRIIMI MAE Sells CMBS
ROCKVILLE, Md., April 24 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE: CMM) sold seven classes of subordinated commercial mortgage-backed securities ("CMBS") rated BB to CCC and unrated from First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust, Series 1998-C2. The CMBS were sold to Lehman ALI, Inc. ("Lehman") pursuant to a consent order signed by Judge Duncan W. Keir on April 18, 2000. The transaction generated aggregate sales proceeds of $140 million.
CRIIMI MAE used approximately $113 million of these sale proceeds to retire the debt associated with these securities owed to Lehman and First Union National Bank. The remaining proceeds, approximately $27 million, will be used primarily to fund CRIIMI MAE's plan of reorganization. This sale, along with the February 2000 sale of subordinated CMBS from Morgan Stanley Capital I, Inc. Series 1998-WF2, which generated approximately $46 million of aggregate sales proceeds, are positive steps in the reorganization process contemplated by the Company's Second Amended Joint Plan of Reorganization (the "Plan"). |
