CRIIMI MAE Completes CMBS Sales to Fund ReorganizationVoting Overwhelmingly Supports Reorganization Plan
ROCKVILLE, Md., Nov. 7 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE: CMM) sold the subordinated commercial mortgage-backed securities (CMBS) from four transactions, raising proceeds of approximately $189 million and completing all of the CMBS sales contemplated by the Company's plan of reorganization.
The announcement comes eight days before the scheduled November 15, 2000 confirmation hearing in bankruptcy court on CRIIMI MAE's Third Amended Joint Plan of Reorganization. On November 3, 2000, the Company filed an affidavit with the bankruptcy court certifying that all impaired classes of creditors and equity holders which voted on the plan had voted overwhelmingly to accept CRIIMI MAE's reorganization plan. The reorganization plan contemplates paying all allowed claims of the Company's creditors.
CRIIMI MAE used approximately $155 million of the proceeds to pay off secured financing provided by Salomon Smith Barney Inc. (formerly Citicorp Securities, Inc.) and to pay down secured financing provided by German American Capital Corporation. The Company used $4 million of the CMBS sales proceeds to satisfy all remaining claims of Citicorp and its affiliates. CRIIMI MAE will use the net proceeds of approximately $30 million to help fund the Company's emergence from Chapter 11.
The CMBS sale included all of CRIIMI MAE's ownership interests in the following CMBS transactions: Mortgage Capital Funding, Inc. Series 1998-MC1, Mortgage Capital Funding, Inc. Series 1998-MC2, CRIIMI MAE CMBS Corp. Series 1998-1 and DLJ Mortgage Acceptance Corp. Series 1997-CF2. CRIIMI MAE sold the CMBS to ORIX Real Estate Capital Markets, LLC in accord with a consent order entered by Bankruptcy Judge Duncan W. Keir.
The CMBS sale announced today brings the total amount CRIIMI MAE has raised this year through CMBS sales towards its recapitalization financing to $419 million.
More information on CRIIMI MAE is available on its web site -- criimimaeinc.com -- or for investors, call Susan Railey, 301-468-3120, or for news media, call Jim Pastore, 202-546-6451. |
