In Brief: Criimi Mae Presents Reorganization Plan

Criimi Mae Inc. last week filed its reorganization plan with the U.S. Bankruptcy Court.

Its reorganization plan would have the company raise $910 million. Financier Leon Black's Apollo Real Estate Advisors fund has agreed to provide $50 million of that by buying preferred stock. Another $435 million would be raised by selling debt, some of it to existing debtholders. The last $425 million would come from sales of commercial mortgage bonds the company holds.

The plan would allow the real estate investment trust to pay off four of its secured creditors -- affiliates of Lehman Brothers, First Union, Citigroup, and Morgan Stanley Dean Witter -- in cash. Two other secured creditors -- affiliates of Merrill Lynch and Deutsche Bank -- would be partially paid off in cash, and receive new senior secured notes for the balance of what they are owed. Criimi would also pay off its unsecured creditors with a combination of cash and new notes.

Criimi Mae is a REIT that invests in the riskiest, lowest-rated pieces of commercial mortgage-backed bond offerings. During last year's liquidity crisis, margin calls forced the company to file for Chapter 11 protection from creditors.