BANKING & FINANCE - May 14, 1992

Morgan Foreclosing on Olympia & York Asset: A bank group led by J. P. Morgan & Co. said it is foreclosing on a delinquent loan to Olympia & York, but the move so far hasn’t set off a scramble by others to seize the developer’s assets. The action cast a pall over Olympia & York’s restructuring plan announced last week in London. The Toronto-based developer offered lenders a non-voting stake in the company and its London office development in exchange for a five-year extension of its $12 billion in debt and an extra $540 million in loans. Bankers are reviewing the proposal. The foreclosure injects yet another element of uncertainty into the fragile debt restructuring.