Olympia & York Creditors to Roll Over Payments : * Negotiations: Failing property giant also got an estimated $27-million boost from stock sale.

Creditors of property giant Olympia & York Developments Ltd., struggling to reschedule its debts, gave the company 10 days’ grace on loan repayments Friday at the start of what may prove to be long and complicated international negotiations.

O&Y;’s major lenders agreed to roll over payments due before April 6, when they will meet again to receive further information about the company’s financial health.

The company, which owns the huge Canary Wharf office development in the London docklands and is New York’s largest landlord, faces problems meeting interest payments on debts estimated by some analysts at up to $20 billion.

O&Y;, which is privately held by Toronto’s secretive Reichmann brothers, met with top officials from about 20 banks around the world in Toronto on Friday.

Former O&Y; President Paul Reichmann and his successor, Thomas Johnson, who was appointed this week to lead the loan negotiations, outlined O&Y;’s financial situation and management’s restructuring plan to officials from Citibank, Hongkong & Shanghai Banking Corp. and Canadian Imperial Bank of Commerce, among others.

O&Y; said it is in the process of forming a bank advisory committee, co-chaired by Canadian Imperial, Citibank and Hongkong & Shanghai Banking. Other banks are also being invited to join the committee.

O&Y; also appeared to receive some cash to help ease its credit crunch, spurred by the North American office glut, the recession and the huge costs of completing Canary Wharf.

It said a private company controlled by Chairman Albert Reichmann bought 4.2 million shares of Camdev Corp., formerly Campeau Corp., from a private company owned by the Reichmann family. The Reichmann family company bought the shares on March 25 from Olympia & York.

The March 25 sale generated about $27 million for O&Y;, judging from stock prices on that day.