NEW YORK, New York--Oct. 13, 1995--Moody's
Service announced today that "On October 11, 1995,
Olympia & York
(USA) initiated of a series of filings for Chapter 11 protection in
U.S. bankruptcy court for a number of its subsidiaries involved in
the United States real estate market.
Included in these filings is Olympia & York Tower A Company, a
lessee under a ground lease which is part of the security for
certain bonds issued by Battery Park City Authority and Housing New
York Corporation which are currently rated by Moody's. Because of
the uncertainty surrounding the details of the filings, Moody's has
placed the following bond ratings under review:
Battery Park City Authority, Senior Revenue Refunding Bonds,
Series 1993A: A1 (under review)
Housing New York Corporation, Senior Revenue Refunding Bonds,
Series 1993: A1 (under review)
Battery Park City Authority, Junior Revenue Refunding Bonds,
Series 1993 A: A (under review)
Approximately $860 million of debt is affected by this action.
Moody's will continue to monitor the situation and will take
rating action when additional information has been received and
CONTACT: Moody's Investors Service,
Lloyd C. Alcorn, 212/553-1042,
Bill deSante, 212/553-0353,
Gail Susman, 212/553-0819
NEW YORK, New York--Oct. 13, 1995--In response to
questions, Petrie Stores Corporation (NYSE:PST) announced today that
although it has not yet received a copy of yesterday's filing by
Petrie Retail, Inc. seeking
protection under the federal bankruptcy
laws, it had the following preliminary comments regarding the impact
of Petrie Retail's bankruptcy on Petrie Stores' Plan of Liquidation
As previously announced, on Dec. 9, 1994, Petrie Stores sold
Petrie Retail, which holds all of the retail operations formerly
conducted by Petrie Stores, to an investor group led by E.M.
Warburg, Pincus & Co. and including Petrie Retail's management.
Petrie Stores is a guarantor of certain retail store leases,
expiring at various times through 2005, to which Petrie Retail or
other former Petrie Stores' subsidiaries are parties. As of Oct. 1,
1995, Petrie Stores believes that its aggregate contingent lease
guarantee liability, should there be defaults with respect to all of
the underlying leases, is approximately $77 million. While Petrie
Stores' actual liability as guarantor will be reduced, among other
things, to the extent Petrie Retail affirms certain of these leases
in bankruptcy or the landlords of leases rejected in bankruptcy find
new tenants, Petrie Stores is not able at this time to estimate what
its ultimate liability as guarantor will be.
Petrie Stores further stated that any amounts that it may be
required to pay in respect of its other contingent liabilities
(primarily related to a fiscal 1989 year tax audit and a
multiemployer pension plan) will not be materially affected by
Petrie Retail's bankruptcy filing.
During 1995 Petrie Stores has distributed to its shareholders a
total of 31,409,587 shares of Toys "R" Us, Inc. pursuant to Petrie
Stores Plan of Liquidation and Dissolution and continues to hold
10,055,576 Toys "R" Us shares, which had a market value of
approximately $274 million based on the Toys "R" Us closing price of
$27.25 on Oct. 12, 1995, as well as about $20 million in cash.
Additional distributions of Toys "R" Us shares will be made from
time to time when Petrie Stores' board of directors feels it is
appropriate, taking into account Petrie Stores' then remaining
contingent liabilities. The bankruptcy filing by Petrie Retail does
not affect Petrie Stores' plans to place its remaining assets in a
liquidating trust prior to Jan. 24, 1996. At that time, Petrie
Stores' shareholders will become holders of beneficial interest in
the liquidating trust.
Petrie Stores may have additional comments after it has had a
chance to fully review Petrie Retail's bankruptcy filling.
CONTACT: Robinson Lake Sawyer Miller,
Mary Ann Dunnell, 212/484-7797
Robert Mercorella, 212/484-7541
This action was taken to stay a foreclosure of Country World's
property in Black Hawk, Colo., in an action commenced by
Tommyknocker Casino Corp., the holder of a note and second deed of
trust on the Country World property.
In May 1995, Country World filed a civil action against
Tommyknocker Casino Corp. and its parent, New Allied Development
Corp., for, among other things, failure to secure a release of a
$475,000 first deed of trust on the property in accordance with the
terms of a warranty deed, an overcharge of approximately $300,000
with regard to an environmental remediation program and failure to
disclose the gaming regulatory history of certain control
individuals within New Allied Development Corp., which would hamper
Country World's ability to obtain a gaming license.
Also, Country World ceased making payments to Tommyknockers, and
Tommyknockers commenced the foreclosure action.
The bankruptcy filed was necessitated by an order of the
magistrate, delivered to Country World this week, that the
foreclosure sale could be commenced.
Roger Leclerc, president of Country World Casinos, said: "The
board of directors voted unanimously to file this action in order to
avoid the public sale of Country World's major assets and protect
the interest of the shareholders. Country World still seeks to
construct the largest casino for limited stakes gambling in Black
Hawk, Colo. Country World continues to aggressively pursue the
financing necessary to construct the casino.
"I recognize that there continues to be substantial obstacles to
the development of this project, but I remain optimistic about the
underlying attractiveness of the property and the theme of the
CONTACT: Country World Casinos Inc., Denver,
Roger D. Leclerc, 303/777-6111