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Exhibit 99.7
Susan B. Railey
For shareholders and securities brokers
(301) 468-3120
James T. Pastore
For news media FOR IMMEDIATE RELEASE
(202) 546-6451
BANKRUPTCY COURT APPROVES CRIIMI MAE'S DISCLOSURE
STATEMENT AND SETS CONFIRMATION HEARING DATE
ROCKVILLE, MD, August 24, 2000 - (NYSE:CMM) - The United States Bankruptcy
Court for the District of Maryland, Greenbelt Division (the "BANKRUPTCY
COURT") entered an order approving CRIIMI MAE's proposed Second Amended Joint
Disclosure Statement (as amended and supplemented by praecipes filed with the
Bankruptcy Court on July 13, 21 and August 18, 2000, the "DISCLOSURE
STATEMENT") and other proposed solicitation materials. The Bankruptcy Court
has scheduled a confirmation hearing on CRIIMI MAE's Third Amended Joint Plan
of Reorganization (as amended and supplemented by praecipes filed with the
Bankruptcy Court on July 13, 14 and 21, 2000, the "PLAN") for November 15,
2000 and set September 5, 2000 as the voting record date for determining the
holders of common stock, preferred stock, 9 1/8% senior notes and general
unsecured creditors entitled to vote to accept or reject the Plan.
Copies of the Plan and Disclosure Statement are to be distributed no later
than September 20, 2000 to holders of claims and interests entitled to vote
on the Plan. In addition, they will be filed as exhibits to a Current Report
on Form 8-K with the Securities and Exchange Commission (the "SEC").
The Company's plan of reorganization was filed with the support of the
Official Committee of Equity Security Holders of CRIIMI MAE, which is a
co-proponent of the plan. The Official Committee of Unsecured Creditors of
CRIIMI MAE has agreed to support confirmation of the Company's plan of
reorganization subject to the completion of mutually acceptable documentation
regarding the treatment of certain classes of claims. Under the plan, Merrill
Lynch Mortgage Capital Inc. and German American Capital Corporation, two of
the Company's largest secured creditors, would provide a significant portion
of the recapitalization financing contemplated by the plan.
Since filing for protection under Chapter 11 of the U.S. Bankruptcy Code on
October 5, 1998, CRIIMI MAE has suspended its loan origination, loan
securitization and CMBS acquisition businesses. The Company continues to own
a substantial portfolio of
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subordinated CMBS and, through its servicing affiliate, acts as a servicer of
commercial mortgage loans.
More information on CRIIMI MAE is available on its web site
-www.criimimaeinc.com - or for investors, call Susan Railey, 301-468-3120 or
for news media, call Jim Pastore, 202-546-6451.
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 uncertainty of the capital markets; the
ability of the Company to obtain recapitalization financing, including but
not limited to a restructuring of certain of its debt and the sale of certain
assets, as contemplated by the Company's plan of reorganization, to a party
or parties for sufficient proceeds; the ability to obtain new equity should
it be determined by the Company to proceed with new equity as part of the
Company's plan of reorganization; the ability of relevant parties to finalize
and execute constituent and operative documents called for by the Company's
plan of reorganization; the possible confirmation of an alternative plan; the
trends in the CMBS market; competitive pressures; the effect of future losses
on the Company's need for liquidity; confirmation, effectiveness and
consummation of the Company's plan of reorganization; the effects of the
bankruptcy proceeding on the Company's ongoing business; the actions of
CRIIMI MAE's creditors and equity security holders; the possibility that the
Company's trader election may be challenged on the grounds that the Company
is not in fact a trader in securities or that it is only a trader with
respect to certain securities and that the Company will, therefore, not be
able to mark-to-market its securities, or that it will be limited in its
ability to recognize certain losses, resulting in an increase in shareholder
distribution requirements with the possibility that the Company may not be
able to make such distributions or maintain REIT status; the likelihood that
mark-to-market losses will increase and decrease due to changes in the fair
market value of the Company's trading assets; and the outcome of litigation
to which the Company is a party, as well as the risks and uncertainties that
are set forth in the Company's disclosure statement, and from time to time in
the Company's SEC reports, including its Annual Report on Form 10-K for the
year ended December 31, 1999 and its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2000.
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