O&Y; Proposes Selling Some U.S. Holdings : Real estate: But a source close to the beleaguered developer denies that the firm is seeking another $100 million in loans.

Olympia & York, in a bid to keep its U.S. properties out of bankruptcy court, is proposing to sell some of its real estate outside New York, but a source close to the developer denied reports Tuesday that it is seeking another $100 million in loans.

“There are no plans to seek $100 million in new money. They’re going to seek concessions” from lenders, the source told Reuters.

The Globe and Mail newspaper in Toronto on Tuesday quoted sources as saying the troubled developer will seek $100 million in new loans next year and hopes to sell 11 of its 25 U.S. office buildings.

O&Y; is trying to keep its U.S. properties out of bankruptcy as its worldwide commercial property empire crumbles. The company’s Canadian assets and its huge Canary Wharf project in London already have been forced into bankruptcy proceedings.

The company is in constant negotiations with its bankers in the United States, an O&Y; spokesman in New York said.

On another front, O&Y; said Tuesday it had finalized the sale of its 11.9% stake in Hyperion Partners LP to a group of investors for $32.5 million.

The money from the Hyperion sale and the cash generated from O&Y;’s healthier U.S. properties will pay operating expenses nearly until the end of the year, the source close to the company said.

The source said O&Y; has divided its U.S. office portfolio into three groups and intends to sell a number of properties as part of a proposed debt restructuring.

He declined to specify how many properties O&Y; intends to sell but said the plan is “not crystal clear.”

O&Y; intends to keep a number of Class A, or top-grade, properties that the company regards as core assets, he said. It intends to try to sell a number of buildings that are regarded as below Class A standards or are based in cities which do not have the potential long-term market that larger cities have, the source said.

“Any sales that they place will be done in an orderly fashion,” the source said.

As well as being Manhattan’s largest commercial landlord, O&Y; has buildings in Los Angeles, Dallas, Chicago, Boston and several other U.S. cities.