Pipeline Sale Will Help Pay Olympia’s Debt : * Real estate: The Canadian developer says the $147.3 million will retire commercial paper.

Olympia & York Developments Ltd. said Thursday that it has set aside about $147.3 million from the sale of its stake in a pipeline company to pay off short-term debt.

The huge Canadian real estate concern also said it has rescheduled for April 13 formal talks with creditor banks on restructuring its $18-billion debt. The talks had been slated to begin Monday.

The world’s largest commercial real estate owner is holding preliminary meetings almost around the clock with lenders to work out arrangements to keep it afloat.

Olympia & York said that on Wednesday night it deposited the $147.3 million with Royal Trust Co. to pay off commercial paper that has either matured or is about to.

Companies use commercial paper to borrow money for short periods. Royal Trust is trustee for holders of Olympia paper.

Olympia & York-controlled GW Utilities Ltd., based in Toronto, sold a 63.5% stake in Interprovincial Pipe Line Inc.

About $78 million of the matured commercial paper will be retired next Thursday, and the balance will be put toward about $153 million in commercial paper maturing later, the company said.

“Planning is underway to permit the orderly retirement of all the outstanding commercial paper under this program,” the company said.

Olympia & York’s debt has become increasingly burdensome as the company’s cash flow has been curbed by the worldwide slump in real estate.

The company said its meeting with lenders was rescheduled to give it time to assemble detailed information about its structure and financial situation.

All of the approximately 100 banks worldwide that have lent to the company have been invited to attend the April 13 gathering, the company said.

It said it will come up with an interim proposal to tide it over while a long-term plan is negotiated.

Olympia missed a payment on a first mortgage loan that matured Wednesday. But a source close to the talks said lenders weren’t expected to foreclose on the mortgage immediately.

The mortgage is held by a syndicate of lenders led by Bank of Nova Scotia. Olympia has asked its banks to extend its loans coming due.

Also this week, Olympia & York delayed a $69-million initial payment for a crucial extension of the Jubilee line of London’s subway system to link the company’s Canary Wharf project to the rest of the city.