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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
July 13, 1999
CRIIMI MAE Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland 1-10360 52-1622022
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
11200 Rockville Pike
Rockville, Maryland 20852
(Address of principal executive offices, including zip code, of Registrants)
(301) 816-2300
(Registrants' telephone number, including area code)
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Item 5. Other Events
Attached as an exhibit to this Current Report of Form 8-K is a press
release issued by the Company on July 13, 1999. The press release is hereby
incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
The following exhibit is filed as a part of this Current Report on
Form 8-K:
(c) Exhibit
99.1 Press Release issued by CRIIMI MAE Inc. on July 13, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrants have duly caused this report to be signed on their behalf by
the undersigned hereunto duly authorized.
CRIIMI MAE Inc.
/s/ July 13, 1999 /s/ Cynthia O. Azzara
- ----------------- by: ------------------------
its: Chief Financial Officer/
Senior Vice President
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EXHIBIT INDEX
Exhibit
No. Description
- -------------------------------------------------------------------------------
*99.1 Press Release issued by CRIIMI MAE Inc. on July 13, 1999.
*Filed herewith.
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EXHIBIT 99.1
Contact: Susan B. Railey
For shareholders and securities brokers
(301) 468-3120
Andrew P. Blocher
For institutional investors
(301) 231-0371
James T. Pastore FOR IMMEDIATE RELEASE
For news media
(202) 546-6451
CRIIMI MAE WORKING TO FINALIZE EQUITY PROPOSAL;
FILES MOTION FOR AN ORDER TO EXTEND EXCLUSIVITY PERIOD
ROCKVILLE, MARYLAND, July 13, 1999 - CRIIMI MAE Inc. (NYSE: CMM) filed a motion
with the Bankruptcy Court to extend for an additional two months the Company's
exclusive period to file a plan of reorganization. The exclusive period is
currently scheduled to terminate on August 2, 1999. The Company indicated in
its motion that it was in negotiations with a substantial party to finalize an
agreement for an equity investment of up to $200 million. This party is
continuing its due diligence review of the Company. This investment would be
part of an approximately $920 million funding of a plan of reorganization
consisting of the private placement of equity, bank financing and the issuance
of high yield debt. Although there can be no assurances, the Company's
financial advisor, Wasserstein Perella & Co., expects that an agreement can be
executed by the end of July.
On October 5, 1998 CRIIMI MAE and two affiliates filed for protection under
Chapter 11 of the U.S. Bankruptcy Code. Before filing for reorganization,
CRIIMI MAE had been actively involved in acquiring, originating, securitizing
and servicing multi-family and commercial mortgages and mortgage related assets
throughout the United States. Since filing for Chapter 11 protection, CRIIMI
MAE has suspended its loan origination, loan securitization and commercial
mortgage-backed securities ("CMBS") acquisition businesses. The Company,
however continues to hold a substantial portfolio of subordinated CMBS and,
through its servicing affiliate, acts as a servicer for its own as well as
third party securitizations.
Note: Except for historical information, forward looking statements contained
in this release involve a variety of risks and uncertainties. These risks and
uncertainties include the continued instability of the capital markets, the
trends in the CMBS market, the ability of CRIIMI MAE to obtain additional
capital, competitive pressures, the effect of future losses on CRIIMI MAE's
need for liquidity, the effects of the bankruptcy proceeding on CRIIMI MAE's
ongoing business, the action of CRIIMI MAE's creditors, the ability to execute
a definitive agreement with the party referenced above, the successful
completion of due diligence by such party, the provisions of any plan of
reorganization approved by the Bankruptcy Court and the outcome of litigation
to which the Company is a party, as well as the risks and uncertainties that
are set forth from time to time in the CRIIMI MAE's SEC reports, including the
report on Form 10-K for the year ended December 31, 1998 and the Form 10-Q for
the quarter ended March 31, 1999.
More information on CRIIMI MAE is available on its website - www.criimimae.com.
