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China Mass Media Corp. Message Board

  • Cuz___ Cuz___ Dec 7, 1998 6:50 PM Flag

    here's the news

    CRIIMI MAE Reaches Agreements With Two Major
    Creditors; Agrees to Split Net Cash Flow From CMBS
    Collateral With Merrill Lynch And German American Capital
    Corporation

    ROCKVILLE, Md., Dec. 7 /PRNewswire/ -- (NYSE: CMM) - CRIIMI
    MAE Inc. has reached agreements with two of its major
    creditors, Merrill Lynch Mortgage Capital Inc. (Merrill
    Lynch) and German American Capital Corporation (GACC),
    under which the company and these creditors will split
    the monthly cash flow after debt service from 13
    classes of CRIIMI MAE's subordinated commercial
    mortgage-backed securities (CMBS). The total current monthly cash
    flow before paying floating-rate, LIBOR-based debt
    service is approximately $5.0 million. The Merrill Lynch
    agreement has been preliminarily approved by the Bankruptcy
    Court, and the GACC agreement has been submitted to the
    Bankruptcy Court for approval. CRIIMI MAE had financed the
    acquisition of the 13 classes of CMBS with $452.3 million of
    loans from these two creditors. CRIIMI MAE and two
    affiliates filed to reorganize under Chapter 11 of the U.S.
    Bankruptcy Code on October 5.

    "Without lengthy court
    proceedings, these agreements help to resolve certain disputed
    issues with two of our major lenders and assure a
    continuing flow of income as CRIIMI MAE reorganizes," said
    Chairman William B. Dockser. "We are continuing to
    negotiate with our other creditors," though Mr. Dockser
    gave no assurance that CRIIMI MAE would reach
    agreements with the other creditors.

    As part of the
    agreement with Merrill Lynch, CRIIMI MAE is dismissing
    without prejudice its October 21 lawsuit asking the
    lender to turnover funds the company charged Merrill
    Lynch had wrongly withheld. For its part, Merrill Lynch
    is dismissing without prejudice its motion for
    relief from the automatic stay in the bankruptcy
    proceedings.

    Under the agreement with Merrill Lynch, CRIIMI MAE will
    receive approximately $1.5 million representing the
    October distributions from eight classes of CMBS
    collateralizing the loan from Merrill Lynch net of October's
    interest payment to Merrill Lynch. For subsequent months,
    the agreement calls for CRIIMI MAE to receive
    distributions of 50 percent of the monthly cash flow from the
    CMBS, net of interest payable to Merrill Lynch. Merrill
    Lynch will apply its half of the net distribution to
    pay down the outstanding principal balance of its
    loans to CRIIMI MAE.

    Under the agreement with
    GACC, CRIIMI MAE each month will receive approximately
    50 percent of the cash flow from the CMBS
    collateralizing the loan from GACC, net of interest payable to
    GACC. GACC will apply the remaining 50 percent to,
    among other things, hedge costs and to pay down the
    outstanding principal balance.

    Before filing for
    reorganization, CRIIMI MAE had been actively involved in
    acquiring, originating, securitizing and servicing
    multifamily and commercial mortgages and mortgage related
    assets throughout the United States. Since filing for
    Chapter 11 protection, CRIIMI MAE has suspended its loan
    securitization, loan underwriting and loan origination
    businesses. The company, however, continues to hold a
    substantial portfolio of subordinated CMBS and, through its
    servicing affiliate, acts as a servicer for its own as well
    as third party securitizations.

 
CMMCY.PK
3.880.00(0.00%)May 29 11:52 AMEDT

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