Olympia & York Funding Dispute With Creditors Resolved

An Ontario judge Friday approved a plan by Olympia & York Developments Ltd. and its creditors to share general, administrative and restructuring costs--a move that should allow O&Y; to proceed on the more important issue, its corporate restructuring plan.

Justice Robert Blair approved the plan after O&Y; and its creditors presented arguments in a half-hour court session.

O&Y; lawyer David Brown said the issue was resolved after court late Thursday by changing some language in the draft plan. “The solution to the problem was suggested literally on the courthouse steps,” Brown said.

The dispute over the funding had held up progress on the restructuring since the world’s largest real estate developer filed for bankruptcy court protection in May.