Criimi Mae, a commercial real estate investment trust that filed for bankruptcy protection in October, has reached an agreement with another of its lenders, Morgan Stanley & Co. International.
Criimi Mae said Tuesday that it and Morgan Stanley have agreed to suspend litigation and cooperate to sell some investment-grade commercial mortgage securities that Criimi holds. Criimi would use its share of the proceeds to fund its reorganization.
They also agreed to a put on a hold a dispute over ownership of subordinated securities that Criimi had purchased with financing from Morgan Stanley. The agreement is subject to bankruptcy court approval. The firm reached agreements with two other creditors, Merrill Lynch and Deutsche Bank, last month.