OTHER NEWS - May 10, 1993

New York Skyscraper in Chapter 11: Olympia & York Developments Ltd. sought bankruptcy court protection for one of its large buildings in lower Manhattan, a step described as a formality to allow creditors to buy the building. The 53-story skyscraper at 55 Water St., one of the largest office buildings in the country, has been losing money because of expiring leases and an asbestos problem. Under an agreement reached in September, Olympia & York and a committee of bondholders agreed to swap about $548 million in short-term notes for 100% ownership of the building. The bondholders are to invest $21 million, in the form of preferred stock, for improvements to the building.