Criimi Mae's long tenure under Chapter 11 bankruptcy protection may soon be coming to an end, as the U.S. Bankruptcy Court has overruled the only remaining objections raised against the commercial-mortgage real estate investment trust.
Even though objections filed by one of Criimi Mae's creditors, Citicorp Securities Inc./Salomon Smith Barney, were overruled, the court stated that a dispute remains between SSB and Criimi Mae which can only be resolved upon a full evidentiary hearing.
According to a Criimi Mae release, Criimi Mae must prove that the reorganization plan "provides the indubitable equivalent of SSB's claim," and that the plan's use of "disputed securities does not violate applicable bankruptcy law."
Furthermore, modifications to the company's disclosure statement were requested by July 19 so a confirmation hearing could be scheduled.
At press time, that date has not been set.
Criimi Mae, once one of the nation's largest holders of commercial backed securities, has been under Chapter 11 bankruptcy protection since October 1998. -